What is GLEIS?
At the request of G20 members, the Financial Stability Board the international organisation which monitors the global financial system, launched an initiative for the establishment of the Global Legal Entity Identifier System (abbr. GLEIS), within the scope of which each legal entity, as a party to global financial market transactions, can be identified by a single Legal Entity Identifier (abbr. LEI).
The Global LEI Foundation was established in June 2014 as a not-for-profit organisation overseen by the Regulatory Oversight Committee (abbr. ROC), to act as the operational arm of the Global LEI System (see www.gleif.org
LEIs are issued by the Local Operating Units (abbrev. LOUs) of the Global LEI System.
What is the LEI code?
LEI enables unique identification of legal entities participating in global financial markets.
LEI is unique 20 digit alphanumeric code assigned by the Zagreb Stock Exchange with structure in accordance to the ISO 17442:2012 standard:
- Characters 1-4: A four character prefix which was allocated to ZSE by ROC
- Characters 5-6: Two reserved characters set to zero
- Characters 7-18: Entity-specific part of the code generated and assigned by ZSE
- Characters 19-20: Two check digits as described in the ISO /IEC 7064 (MOD 97-100)standard.
Which entities must have LEI code assigned?
All legal entities having their registered seat in the European Union that enter into any derivatives contracts must have a LEI assigned in order to meet the requirements of reporting to trade repositories, in accordance with the provisions of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories.
With effect from 1 January 2017, the Commission delegated regulation (EU) 2016/1437, which supplements the Transparency Directive 2004/109/EC with regard to regulatory technical standards on access to regulated information at the Union level, has been applied. LEI reporting is required for issuers of securities admitted to trading on a regulated market when submitting regulated information to the Official appointed mechanisms (OAMs).
A new legal framework which regulates the capital markets across the European Union (the MiFID II package which consists of a Directive MiFIDII and a Regulation MiFIR) entered into force as of 3 January 2018. It is referring to Directive 2014/65/EU of the European parliament and of the council of 15 May 2014 on markets in financial instruments (MiFID II Directive) and Regulation MiFIR (EU) No 600/2014 of the European parliament and of the council of 15 May 2014 on markets in financial instruments. The use of LEI is mandatory for issuers of financial instruments listed on regulated market or traded on a multilateral trading platform in EU countries (Transparency Directive), investment firms that execute transactions in financial instruments, clients on whose behalf the investment firm execute transactions (when the client is a legal entity).
As of January 3rd, 2018, the mandatory element of the CSDR for all Central securities depositories is to collect and record the LEIs of their securities issuers to meet their reporting obligations to domestic and European supervisory authorities (Regulation (EU) No 909/2014 of the European parliament and of the council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories).
More information: https://www.esma.europa.eu/sites/default/files/library/esma70-145-238_lei_briefing_note.pdf
The list of all regulations identifying entities who needs to apply for LEI codes, is available on the website of Global LEI system Global LEI Foundation or GLEIF
How to apply for LEI assignment?
User has to create a user account in order to connect to the zseLEI Service. Once the account has been created, user can submit a request for LEI assignment by filling the electronic application form for LEI assignment available through zseLEI Service. Detailed instructions on LEI assignment process can be found in zseLEI Service User Manual
Who can apply for LEI assignment?
Request for LEI assignment can be made by either by employee of the legal entity or by agent authorized by the legal entity. In the latter case, a power of attorney has to be attached when submitting the request. The power of attorney authorizes the agent to act on behalf of a legal entity in its relations with the ZSE.
Where you can find information on assigned LEI codes?
A list of all LEIs assigned by ZSE together with reference data is available to the public through ZSE Internet pages. The list can be searched by legal entity name, LEI, country of registration and business registry number.
Each working day the following XML files are available to the public through ZSE Internet pages:
- File with all LEIs maintained by ZSE
- File with relationship (Level 2) data
- File with exceptions from reporting relationship (Level 2) data
More information of the XML format of the before mentioned files can be obtained from Internet pages of the Global LEI Foundation
What is the cost of LEI assignment?
LEI assignment fee amounts 740,00 HRK + VAT and is payable after the user has made the application for LEI assignment. Assigned LEI is valid for one year. Afterwards the user has to renew the LEI maintenance.
LEI maintenance fee amounts 400,00 HRK + VAT per year.
How to pay the LEI assignment fee?
After the user has made the application for LEI assignment he will receive the e-mail which shall include an instruction for payment of the LEI assignment fee. Fee is payable to one of the below mentioned bank accounts:
|Reifeissenbank Austria d.d. Zagreb:
|Erste&Steiermarkische bank d.d.:
|Privredna banka Zagreb d.d.:
|Societe Generale-Splitska banka d.d.:
How to transfer assigned LEI code?
A legal entity can transfer the maintenance of its LEI reference data from another LOU to zseLEI Service. It is necessary to create a user account in order to connect to the zseLEI Service and to submit a transfer request to ZSE. zseLEI Service administrator will contact sending LOU and forward all necessary information regarding the legal entity wishing to transfer its LEI. Detailed instructions on LEI transfer process can be found in zseLEI Service User Manual
How to update information on the legal entity?
Update to the information shall be made by the legal entity by means of appropriate electronic forms available via the zseLEI Service.
Also, any person who notices that any information on the legal entity may be inaccurate or incomplete may forward notification about it to the Zagreb Stock Exchange Exchange by e-mail to: firstname.lastname@example.org
How to contact us?
Full operational support facilities are available from 09:00 to 16:00 hours every working day:
Phone number: (+385) 01 4686 829
What is and how to request a challenge of LEI Data?
Every user of the LEI data has a possibility to challenge accuracy of the LEI data and completeness of the related legal entity reference data. It is also possible to indicate potential duplicate LEIs entries, challenge uniqueness of an LEI or indicate missed corporate action affecting the legal entity status. All data challenges will be verified against publicly available authoritative sources and you will be informed about outcome of the verification.
Please send your LEI data challenge by electronic form available when browsing reference data of the specific legal entity by clicking the button 'Challenge data'.
What is relationship data (Level 2 data)?
As of May 01, 2017 all LEI issuing organizations of the Global LEI System, as well as the Zagreb Stock Exchange has started to collect so called Level 2 data (relationship data) that will answer the question of ‘who owns whom’. This data will allow the identification of the direct and ultimate parents of a legal entity. All legal entities submiting request for LEI issuance, renewal or transfer have to disclose information on their direct and ultimate accounting consolidating parent.
All legal entities submiting request for LEI issuance, renewal or transfer will have to disclose information on their direct and ultimate accounting consolidating parent starting as of May 01, 2017.
Direct accounting consolidating parent of legal entity is the lowest level legal entity that prepares consolidated financial statements that consolidate entity, based on the accounting definition of consolidation applying to this parent.
Ultimate accounting consolidating parent of entity is the highest level legal entity preparing consolidated financial statements that consolidate entity, based on the accounting definition of consolidation applying to this parent.
In order to prepare yourself in advance, please collect following data for your direct and ultimate accounting consolidating parent before submiting request for LEI issuance, renewal or transfer:
- consolidated financial statements or other legal documents showing the information on parent relationships
- URL of consolidated financial statements or other legal documents showing the information on parent relationships, if publicly available
- LEI of parent
- if parent does not have an LEI, then the following data for the parent should be provided: official name, the legal and headquarters address, the official business registry where the foundation of the parent is mandated to be recorded and the reference in the official business registry, where applicable.
Legal entity has the right to withold the information on direct or ultimate parent but it must give one of the following opt-out reasons:
- Regulatory obstacles prevent providing information
- Parent did not consent or could not be contacted
- Binding legal commitments prevent providing information
- Detriment could not be excluded.
- Disclosure would be detrimental to the legal entity or the parent
If legal entity does not have parent entity, it must give one of the following reasons:
- There is no parent because the entity is controlled by natural person(s)
- There is no parent because the entity is controlled by legal entities not subject to consolidating
- There is no parent because there is no known person controlling the entity (diversified shareholding)
More information: https://www.gleif.org/en/lei-data/access-and-use-lei-data/level-2-data-who-owns-whom