Global LEI System Business Report - Q2 2018 - GLEIF
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Global LEI System Business Report Q2 2018
Global LEI System Business Report | Q2 2018 | page 02
Summary
State of play of LEI issuance and LEI growth potential India features the highest LEI growth rate at country level in Level 1 reference data corroboration
At the end of the second quarter of 2018, the total LEI both the first and the second quarter of 2018 (100.5% in Q2 The business card information available with the LEI
population neared 1.2 million. Approximately 71,300 LEIs 2018). This trend could be attributed to the Reserve Bank of reference data, e.g. the official name of a legal entity and its
were issued in the second quarter of 2018 compared to India’s adoption of the LEI for large corporate borrowers. registered address, is referred to as ‘Level 1’ data. It provides
approximately 167,000 in the first quarter. This represents the answer to the question of ‘who is who’. The Level 1
a growth rate of 6.3 percent in the second quarter (first Competition in the Global LEI System data is considered fully corroborated if, based on the
quarter: 17.8 percent). validation procedures in use by the LEI issuer responsible
The report identifies the least and most competitive markets for managing an LEI record, there is sufficient information
LEI issuance in the second quarter of 2018 confirms of those with more than 1,000 LEIs, based on the number contained in authoritative public sources to corroborate
that the market is well prepared to comply with the LEI of LEI issuers providing services in the country. In the the information that the legal entity has provided for the
requirements established under the European Union second quarter of 2018, Italy, Spain, the Netherlands and record. If this is not the case, the business card information
revised Markets in Financial Instruments Directive (MiFID the U.S. remained among the five least competitive markets. available with an LEI record is classified as ‘entity-supplied
II) and Regulation (MiFIR), which took effect on 3 January Bulgaria, Portugal, Malta, and South Africa were among the only’. In the second quarter of 2018, the percentage of
2018. According to MiFIR, investment firms should obtain five most competitive markets. fully corroborated Level 1 reference data decreased to 76.1
LEIs from their clients before providing services which percent (first quarter: 84.6 percent). This change reflects
would trigger related reporting obligations. LEI renewal rates the fact that the largest LEI issuer, Business Entity Data B.V,
adjusted the status of a significant number of historic LEIs
Reflecting this development, the European Securities and In the second quarter of 2018, the overall renewal rate1 of
under its management from ‘fully corroborated’ to ‘entity-
Markets Authority (ESMA) confirmed on 20 June 2018 that 66.6 percent remained essentially unchanged compared to
supplied only’. GLEIF is investigating the matter.
transitional arrangements relevant to the LEI requirements the previous two quarters. At the end of the second quarter
under MiFID II / MiFIR introduced in December 2017 “will of 2018, 84 percent of all LEIs were in good standing (no
not be further extended”. The six-month temporary change compared to the previous quarter). In the reporting Statistics on the reporting of parent information by
period “will last until the 2nd July 2018, including.” (On period, these five countries demonstrated the highest legal entities
20 December 2017, ESMA had stated that it allowed for a renewal rates: Japan (90.1 percent), Finland (85.8 percent), By the end of the second quarter of 2018, about 1.1 million
“period of six months that investment firms may provide a Austria (79.9 percent), Switzerland (76.5 percent) and LEI registrants representing 93 percent of the total LEI
service triggering the obligation to submit a transaction Norway (76.0 percent). population reported information on direct and ultimate
report to the client, from which it did not previously obtain parents (previous quarter: 75 percent). The percentage of
an LEI code, under the condition that before providing legal entities that cited legal obstacles preventing them
Transfer of LEIs
such service the investment firm obtains the necessary from providing or publishing parent information increased
documentation from this client to apply for an LEI code Following the accreditation of GS1 AISBL by GLEIF as an LEI
substantially from 4 percent to 19 percent. This is due to a
on his behalf.”) ESMA and national competent authorities issuer, GS1 Germany GmbH transferred all LEIs under its
change in reporting by one LEI Issuer, Business Entity Data
“have concluded that there is no need to extend the management to GS1 AISBL. Going forward, GS1 Germany
B.V. This change in reporting is erroneous and is expected
initial six month period granted to support the smooth GmbH will operate as a Registration Agent. (A Registration
to be remediated during the third quarter of 2018.
introduction of the LEI requirements under MiFIR.” Agent helps legal entities to access the network of LEI
issuing organizations responsible for performing LEI
issuance and related services.) 1 This includes countries with at least 1,000 LEIs in total at the previous quarter-end date.
© 2018 GLEIF and/or its affiliates. All rights reserved. | Release date 2018-08-08 | Version 1.0 | PublicGlobal LEI System Business Report | Q2 2018 | page 03
Level 1 data report
Q2 2018
Active LEIs
Total Number of Active LEIs by Countries | Fig.-1
28
45,989
746 1,213
122 23,018
20,920
26,742 4,065
48,019 983
15,320
105,869
76
12,175 2,732 21
84,468 7 36 1 7
163,365 2,553 1 2
1,265 47 5,261 12 1,401 911 7,739
2,254 4 5
87
12 6 47 18
3,185 133 276 1,591 95
2,156 9,168 2 4,481
19,435 17,668 5 6
72 7 15 2 4 4 506
853 38 3 13
3,592 315 1
1 446 45 4 80 3 1,086
2 13 23 63 2
5 7 4,239
50 10 575
26 900 8
13 1
438 204 1,460 19 4 15 2
22 25 74
61 7 5
1 210 22 25 896 79
642 99 9,154
3
413 275 1,081
3
1,082
11
© 2018 GLEIF and/or its affiliates. All rights reserved. | Release date 2018-08-08 | Version 1.0 | PublicGlobal LEI System Business Report | Q2 2018 | page 04
Active LEIs
Total LEI Trend-Top 5 Countries | Fig.-2 Total LEI Trend-Top 5 LEI issuers | Fig.-3
Tsd. Tsd.
180 400
160
350
140
300
120
250
100
200
80
150
60
100
40
20 50
0 0
Q3–2017 Q4–2017 Q1–2018 Q2–2018 Q3–2017 Q4–2017 Q1–2018 Q2–2018
United States Business Entity Data BV
United Kingdom London Stock Exchange
Germany WM Datenservice
Netherlands Kamer van Koophandel (KvK)
InfoCamere
Italy
© 2018 GLEIF and/or its affiliates. All rights reserved. | Release date 2018-08-08 | Version 1.0 | PublicGlobal LEI System Business Report | Q2 2018 | page 05
Growth in Total Number of Active LEIs
New LEI Issuance | Fig.- 4 LEI Forecast | Fig.-5
Forecasted Active LEI Actual Active LEI
Tsd.
1,200,000
1,400 1,194,265 1,182,000
1,123,014 1,164,000
1,200 1,069,000
1,000
800
600 Total LEI issued
400
200
New issuance
0
Q3–2017 Q4–2017 Q1–2018 Q2–2018 Q1–2018 Q2–2018 Q3–2018 Q4–2018
Quarterly LEI Growth – Top 5 Countries | Fig.- 61 Quarterly LEI Growth – Top 5 LEI issuers | Fig.-7
100.5%
106.1%
52.4%
35.9%
24.7% 19.0%
15.8% 15.2% 15.4%
11.1%
LEIL EQS Federal KDD Slovenia Bloomberg
India Estonia Portugal Mexico Slovenia (8) (15) Statistical Office (3) (56)
(9) (4) (5) (2) (2) (4)
Growth rate of countries Growth rate of LEI issuers
Total issuance in thousands at most recent quarter-end date in parenthesis Total issuance in thousands at most recent quarter-end date in parenthesis
1. Analysis includes only those countries with at least 1,000 LEIs in total at the previous quarter-end date © 2018 GLEIF and/or its affiliates. All rights reserved. | Release date 2018-08-08 | Version 1.0 | PublicGlobal LEI System Business Report | Q2 2018 | page 06
LEI Renewal Activity LEI Renewal – Top 5 Countries | Fig.-91
90.1%
LEI Renewal | Fig.- 8
85.8%
Tsd.
1,200 79.9%
Total Active LEIs 76.5%
76.0%
1,000
800
600
Active and verified LEIs
400
Japan Finland Austria Switzerland Norway
200 (8) (23) (22) (12) (21)
0 Renewal ratios of countries
Total issuance in thousands at most recent quarter-end date in parenthesis
Q3–2017 Q4–2017 Q1–2018 Q2–2018
Reference Data Corroboration by LEI issuers
LEI non-Renewal (Lapsed LEIs) – Top 5 Countries | Fig.-101 Percentage of Fully Corroborated LEIs | Fig.- 11
62.8%
55.5%
54.4%
87.2%
44.6% 42.8% 84.8% 84.6%
76.1%
Brazil United States Virgin Islands, Mexico Denmark
(1) (163) British (18) (2) (48)
Non-Renewal ratio of countries Q3–2017 Q4–2017 Q1–2018 Q2–2018
Total issuance in thousands at most recent quarter-end date in parenthesis
1. Analysis includes only those countries with at least 1,000 LEIs in total at the previous quarter-end date © 2018 GLEIF and/or its affiliates. All rights reserved. | Release date 2018-08-08 | Version 1.0 | PublicGlobal LEI System Business Report | Q2 2018 | page 07
Competition amongst LEI issuers
Least Competitive (Most Concentrated) Markets | Fig.-121 Most Competitive (Least Concentrated) Markets | Fig.-131
91.6%
89.5% 88.9% 88.4% 86.8%
21.0% 23.3% 24.2%
20.8%
19.9%
Italy Spain Netherlands United States Finland Bulgaria Portugal Malta South Africa Cyprus
(87) (84) (93) (163) (23) (2) (5) (3) (1) (5)
Concentration score of countries Concentration score of countries
Total issuance in thousands at most recent quarter-end date in parenthesis Total issuance in thousands at most recent quarter-end date in parenthesis
Transfers out of LEIs – Top 5 LEI issuers | Fig.-14 Transfers in of LEIs – Top 5 LEI issuers | Fig.-15
22,848 22,983
810 667
577 594
268 316
139 138
GS1 Germany Business WM London Stock Insee GS1 AISBL Bloomberg Federal Business EQS
(–) Entity Data BV Datenservice Exchange (56) (25) (56) Statistical Office Entity Data BV (15)
(386) (121) (156) (4) (386)
Number of LEIs transferred out Number of LEIs transferred in
Total issuance in thousands at most recent quarter-end date in parenthesis Total issuance in thousands at most recent quarter-end date in parenthesis
1 A
nalysis includes only those countries with at least 1,000 LEIs in total at the previous quarter-end date. © 2018 GLEIF and/or its affiliates. All rights reserved. | Release date 2018-08-08 | Version 1.0 | Public
The higher the percentage the more concentrated LEI management is with a single LEI issuer.Global LEI System Business Report | Q2 2018 | page 08
Level 2 data report
Q2 2018
1,109,522 Top 5 countries of the legal entities for
In May 2017, the process of enhancing the legal entities reported level 2 reporting | Fig.-1
LEI data pool, by including ‘Level 2’ data level 2 data in May 2017 162,654
through June 2018 125,083
to answer the question of ‘who owns whom’, 90,527
79,980
began. The graphic below provides infor- 72,428
mation on direct and ultimate parent data
collected through June 20181.
United United Germany Spain Italy
States Kingdom
Each legal entity reports information on its Each legal entity reports information on its
direct parent2: ultimate parent3:
6% 6% 69% 19% 6% 6% 69% 19%
of legal entities of legal entities of legal entities of legal entities of legal entities of legal entities of legal entities of legal entities
reported direct reported direct reported cited legal reported ulti- reported ulti- reported cited legal
parents having parents who do having no obstacles mate parents mate parents having no obstacles
an LEI4 not have an LEI direct parent preventing having an LEI4 who do not ultimate parent preventing
(See next page for according to them from (See next page for have an LEI according to them from
additional details.) the definition providing or additional details.) the definition providing or
used publishing used publishing
direct parent ultimate parent
information information
1 Referenced to level 2 relationship record CDF concatenated file dated 04 July 2018
2 99.9% legal entities reported direct parent
3 99.9% legal entities reported ultimate parent
4 The definitions of ultimate and direct parent are based on percentage share of accounting consolidation as per LEI Regulatory Oversight Committee prescription.
Related link https://www.gleif.org/en/about-lei/common-data-file-format/level-2-data-reporting-exceptions-format
© 2018 GLEIF and/or its affiliates. All rights reserved. | Release date 2018-08-08 | Version 1.0 | PublicGlobal LEI System Business Report | Q2 2018 | page 09
Level 2 data report
Q2 2018
Identification of the direct and ultimate parents of a legal entity with an LEI allows users
to research entities owned by individual companies. It provides a better understanding
of the entity from which a company or individual is buying goods or services or in which
it is investing. The following charts provide additional information on relationships where
the direct or ultimate parents are identified by an LEI.
Additional information on direct parents having an LEI Additional information on ultimate parents having an LEI
Validation status of the direct Number of direct parents | Fig.-3 Validation status of the ultimate Number of ultimate parents | Fig.-5
parent relationship | Fig.-2 parent relationship | Fig.-4
Tsd. Tsd.
3% 3%
27% Partially 14 33% Partially 9
Fully corroborated Fully corroborated
12
corroborated corroborated 7
10
8 5
6
3
4
2
2
0 0
1 2 3 4 5 5 plus 1 2 3 4 5 5 plus
70% 64%
Entity supplied only Number of child entities per parent Entity supplied only Number of child entities per parent
DISCLAIMER: All figures of this Global LEI System Business Report are derived from the Global Legal Entity Identifier Foundation (GLEIF)‘s LEI-Common Data File (CDF) format version 2.1, Relationship Record (RR) CDF format version 1.1 and Reporting Exceptions format version 1.1 excluding LEIs with registration
statuses DUPLICATE, ANNULLED, MERGED and RETIRED. While every care has been taken in the compilation of this information, GLEIF will not be held responsible for any loss, damage or inconvenience caused because of inaccuracy or error within the Global LEI System Business Report. The text and graphic
content of the Global LEI System Business Report may be used, printed and distributed ONLY with the copyright information displayed (© Copyright Global Legal Entity Identifier Foundation (GLEIF)).
© 2018 GLEIF and/or its affiliates. All rights reserved. | Release date 2018-08-08 | Version 1.0 | PublicYou can also read
