It connects to key information that enables clear and unique identification of legal entities participating in financial transactions.
Therefore the publicly available LEI data pool can be regarded as a global directory of non-individual participants in the financial market.
These are accredited by the Global Legal Entity Identifier Foundation (GLEIF) to issue LEIs.
It means that each country had different code systems to recognize the counterpart corporation of financial transactions.
The U.S. and European countries require corporations to use the legal entity identifier when reporting the details of transactions with over-the-counter derivatives to financial authorities.
[citation needed] Today, authorities of 45 jurisdictions mandate the use of LEI code to identify legal entities involved in different financial transactions.
Local operating units can have different prices and LEI issuing speed for the registration services they offer.