The global LEI System enables the clear, unambiguous identification of participants in financial transactions.
The basis of the system is ISO 17442. This standard defines the elements of clear legal recognition (LEI) in identifying the relevant legal identities involved in a financial transaction.
An LEI data record basically consists of an ID and its associated data. Each LEI has a data record known as Legal Entity Record Data (LE-RD).
GLEIS was expanded in 2017 to include data forms on which connections with parent companies could be mapped. If a legal entity which has a holding company wishes to apply for a LEI, the relevant data must be provided while applying which, in the simplest case, is the LEI of the holding company.
Further development of the Global Legal Entity Identifier (LEI) System is carried out by the Global Legal Entity Identifier Foundation (GLEIF) in collaboration with the LOUs.
The Global LEI Foundation (GLEIF) is supervised by the LEI Regulatory Oversight Committee (LEI ROC).
The LEI ROC was established on the recommendation of the Finance Stability Boards (FSB) to the G20.