Difference between and an LEI & a Pre-LEI
The Legal Entity Identifier (LEI) initiative has been designed to create a global reference data system that uniquely identifies every legal entity or structure, in any jurisdiction, that is party to a financial transaction.
Endorsed by the G20, the Global LEI System (GLEIS) has been created to improve the measurement and monitoring of systemic risk. Having a unique global system will allow regulators and organisations to more effectively measure and manage counterparty exposure while also resolving long standing issues on entity identification across the globe.
LEI vs Pre-LEI
During the course of creating the GLEIS, it was considered desirable to keep up momentum by beginning to issue entity identifiers as early as possible rather than wait for the global system to become fully operational. It was therefore decided to to issue "Pre-LEIs‟ to entities as an interim measure. The Pre-LEIs has all of the characteristics that the official LEIs has and at the right time will simply transform into and LEI without the need for changes.
A number of Pre-Local Operating Units (Pre-LOUs), such as London Stock Exchange, were authorised to issue these Pre-LEIs during the interim period, these Pre-LOUs would also turn into official Local Operating Units (LOUs) when the GLEIS becomes fully operational.
How to register for an Pre-LEI
If you need to register for a Pre-LEI you can do so quickly and easily on with London Stock Exchange. To find out more please read our LEI page.