Monday, February 03 11:33:43
The Irish Stock Exchange (ISE) has issued over 1,000 pre-Legal Entity Identifier (LEI) codes since launching its online application service through www.ISEdirect.ie last autumn, it said this morning.
Demand is set to rise as some organisations need to have pre-LEIs for regulatory reporting purposes under European securities legislation, which comes into effect on 12th February.
LEI is a global reference code which uniquely identifies each legal entity that engages in a financial transaction.
This regulatory initiative is designed to enable the identification and linking of parties to financial transactions and facilitates the better management of counterparty risk.
Among the 1,000 codes issued, the ISE's customers includes well-known Irish brands such as Kingspan, Ryanair, Smurfit Kappa and Musgrave Group, international banks like Morgan Stanley, national service providers such as RTE and ESB as well as a large range of investment funds and debt issuers, both listed on the ISE and elsewhere. In addition, some SMEs in Ireland that engage in foreign exchange transactions to manage currency risk have also been applying for codes.
The geographic spread of the ISE's customer base for their new service extends far beyond Ireland and includes Australia, USA and Canada, the United Arab Emirates and a wide range of European countries - United Kingdom, Germany, France, Spain and Italy.
The LEI requirement is part of the international response by regulatory authorities to the global financial crisis. In December, the ISE was only the sixth organisation worldwide to be endorsed by the Regulatory Oversight Committee (ROC), the global body of regulators which oversees adherence to the LEI standards. The Central Bank of Ireland, which has sponsored the ISE as the pre-LEI provider in Ireland, is a member of the ROC.
James Ferguson, Head of Operations and LEI Lead said, "The ISE's user friendly and simple application process on www.ISEdirect.ie has enabled us to attract entities, both existing and new customers. Based on customer feedback, we expect this strong interest in the ISE service to continue."
Brian Healy, Director of Traded Markets, Development, Operations added, "We are delighted with the success of our pre-LEI service - having delivered over 1,000 pre-LEI codes to more than 20 jurisdictions across the globe, the level of take-up is a real validation of the strength and quality of our offering and its international potential. The ISE has been at the forefront of the LEI initiative globally and our early endorsement by the Regulatory Oversight Committee re-enforces our expertise in this area."