global lei system business report q1 2019 · 1,000 leis in total at the previous quarter-end date)....

Global LEI System Business Report

Q1 2019

https://www.gleif.org/en

© 2019 GLEIF and/or its affiliates. All rights reserved. | Release date 2019-05-13 | Version 1.0 | Public

LEI renewal rates

The annual renewal process ensures that the legal entity and the LEI issuing organization review and re-validate the legal entity reference data at least once per year. The Global LEI System is unique in providing absolute transparency on the timeframe when data has last been verified.

In the first quarter of 2019, the overall renewal rate of 70.8% remained essentially unchanged compared to the previous quarter (70.1%). (This includes jurisdictions with at least 1,000 LEIs in total at the previous quarter-end date). At the end of the first quarter of 2019, 73.4% of all LEIs were in good standing (previous quarter: 76%).

It is worth noting that about 170,000 LEIs were issued in the first quarter of 2018, due to the impact of the revised EU Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR), which took effect on 3 January 2018. Approximately 67% of these, which were due for renewal in the first quarter of 2019, were renewed on time.

The renewal rate in the EU increased from 70.3% to 71.7%. In non-EU jurisdictions, it improved to 59.7% (previous quarter: 57.6%). In the reporting period, these five jurisdictions demonstrated the highest renewal rates: India (95.5%), Finland (93.5%), Japan (91.9%), Liechtenstein (91.1%) and Norway (85.7%). Brazil (54.9%), the United States (53.9%), South Africa (48.3%), the United Kingdom (46.6%), and the Russian Federation (46.3%) were the top five jurisdictions demonstrating the highest non-renewal rates.

Global LEI System Business Report | Q1 2019 | page 02

SummaryLEI issuance and LEI growth potential: State of play

At the end of the first quarter of 2019, the total LEI population neared 1.36 million. Approximately 53,000 LEIs were issued in the first quarter of 2019 compared to approximately 55,000 in the fourth quarter of 2018. This represents a quarterly growth rate of 4.1% in the first quarter (previous quarter: 4.4%).

In the first quarter, China featured the highest LEI growth rate at a jurisdiction level (115.3%) followed by Turkey (48.3%), Mauritius (24.8%), India (23.6%), and Australia (12.9%). Growth in China, India, Turkey and Australia is primarily attributed to regulatory initiatives mandating the use of the LEI.

Competition in the Global LEI System

The report identifies the least and most competitive markets of those with more than 1,000 LEIs, based on the number of LEI issuers providing services in the jurisdiction. In the first quarter of 2019, Italy, Netherlands, Spain, Finland and Czech Republic were the five least competitive markets in descending order. Romania, Lithuania, Portugal, Malta and Bulgaria were the five most competitive markets in descending order.

Level 1 reference data corroboration

The business card information available with the LEI reference data, e.g. the official name of a legal entity and its registered address, is referred to as ‘Level 1’ data. It provides the answer to the question of ‘who is who’. The Level 1 data is considered fully corroborated if, based on the validation procedures in use by the LEI issuer, there is sufficient information contained in authoritative public sources to corroborate the information that the legal entity has provided for the record. If this is not the case, the business card information available with an LEI record is classified as ‘entity-supplied only’.

In the first quarter of 2019, the percentage of fully corroborated Level 1 reference data within the entire LEI population increased from 78.2% to 78.8%.

Statistics on the reporting of parent information by legal entities

In the first quarter of 2019, approximately 1,200,000 LEI registrants representing 88% of the total LEI population had reported information on direct and ultimate parents. 99.9 % of LEI registrants who obtained a newly issued LEI or renewed an existing LEI in this quarter reported parent information.

In the reporting period, 7% of legal entities reported a direct parent that has an LEI (previous quarter: 6%). The percentage of legal entities reporting an ultimate parent that has an LEI remains stable at 7%.

The share of legal entities that cited legal obstacles preventing them from providing or publishing parent information decreased from 9.6% to 8.6%.

1 This includes jurisdictions with at least 1,000 LEIs in total at the previous quarter-end date.



29,439

183,225

3,396

1088 19

2,493

3,617

20,18922,367

4,380

708

2

231

64

11

3

871

59

245

26

122

353

1,692

101

7 7

14 6

15

4

5

6

449

356

14

4

2

90

1,285

26,536

52,651

5,088

1,188

115,639

69,409

97,379

77

3,109 25

232

1

1228 79

31

2227

3526

1,272

22

3

18

8

3

1

142388 2,045

1085 3

38

53

22,483

20

3,529

136

712

66735

12

13,403

962

1,846

66

53

19

528

212

1,3846,379

2,9025,939

53,819

101,698

135,224

14624,659

9

5155

4

135

91

1,085

8,243

5,176333

15

3 1,384

525

1

799

98

1,226

1

4,914

1,255

1,136

5

81

32

931

Active LEIs

Total Number of Active LEIs by Jurisdictions | Fig.-1


Level 1 data report

Q1 2019



Active LEIs

Total LEI Trend-Top 5 Jurisdictions | Fig.-2 Total LEI Trend-Top 5 LEI issuers | Fig.-3

200

150

100

Tsd. Tsd.

500

400

300

200

100

Q2–2018 Q2–2018Q3–2018 Q3–2018Q4–2018 Q4–2018Q1–2019 Q1–2019

United States

United Kingdom

Germany

Italy

Netherlands

Business Entity Data BVLondon Stock ExchangeWM DatenserviceInfoCamereKamer van Koophandel (KvK)


50

100

150

200

50

100

150

200

0

100

200

300

400

500



Growth in Total Number of Active LEIs

New LEI Issuance | Fig.- 4

Quarterly LEI Growth – Top 5 Jurisdictions | Fig.- 61

LEI Forecast | Fig.-5

Quarterly LEI Growth – Top 5 LEI issuers | Fig.-7

Tsd.

1,400

1,200

1,000

800

600

400

200

0

Q2–2018 Q1–2019Q3–2018 Q2–2019

Growth rate of jurisdictions Total issuance in thousands at most recent quarter-end date in parenthesis

Growth rate of LEI issuers Total issuance in thousands at most recent quarter-end date in parenthesis

Q4–2018 Q3–2019Q1–2019 Q4–2019

115.3%

48.3%

24.8% 23.6%

12.9%

134.9% 134.1%

18.8% 12.7%12.1%

Australia (13)

India (22)

Mauritius (1)

Turkey (2)

China(4)

1. Analysis includes only those jurisdictions with at least 1,000 LEIs in total at the previous quarter-end date

Bloomberg (71)

EQS (38)

Ubisecure (6)

LEIL (18)

CFSTC (3)


Forecasted Active LEINew issuance Actual Active LEITotal LEI issued

1,357,000

1,410,0001,458,000

1,506,000

1,358,872



LEI Renewal Activity

Reference Data Corroboration by LEI issuers

LEI Renewal | Fig.- 8

LEI Renewal – Top 5 Jurisdictions | Fig.-91

LEI non-Renewal (Lapsed LEIs) – Top 5 Jurisdictions | Fig.-101

Q2–2018 Q3–2018

Non-Renewal ratio of jurisdictions Total issuance in thousands at most recent quarter-end date in parenthesis

Q4–2018 Q1–2019

Total Active LEIs

Active and Verified LEIs

95.5%93.5%

91.9% 91.1%

85.7%

Japan(8)

Liechtenstein(10)

Norway(25)

Finland(27)

India (22)

54.9% 53.9%

48.3% 46.6% 46.3%

Brazil(2)

United States(183)

South Africa (1)

United Kingdom (135)

Russian Federation (1)


Percentage of Fully Corroborated LEIs | Fig.- 11

Q2–2018 Q3–2018 Q4–2018 Q1–2019

Tsd.

1,400

1,200

1,000

800

600

400

200

0

76.6%76.1%78.2% 78.8%

Renewal ratios of jurisdictionsTotal issuance in thousands at most recent quarter-end date in parenthesis

1. Analysis includes only those jurisdictions with at least 1,000 LEIs in total at the previous quarter-end date



Competition amongst LEI issuers

Least Competitive (Most Concentrated) Markets | Fig.-121 Most Competitive (Least Concentrated) Markets | Fig.-131

Concentration score of jurisdictionsTotal issuance in thousands at most recent quarter-end date in parenthesis

Number of LEIs transferred outTotal issuance in thousands at most recent quarter-end date in parenthesis

Number of LEIs transferred inTotal issuance in thousands at most recent quarter-end date in parenthesis

Concentration score of jurisdictionsTotal issuance in thousands at most recent quarter-end date in parenthesis

1 Analysis includes only those jurisdictions with at least 1,000 LEIs in total at the previous quarter-end date. The higher the percentage the more concentrated LEI management is with a single LEI issuer.

Lithuania(1)

Romania(3)

Portugal(6)

Malta(3)

Bulgaria(2)

Transfers out of LEIs – Top 5 LEI issuers | Fig.-14 Transfers in of LEIs – Top 5 LEI issuers | Fig.-15

London Stock Exchange(166)

90.1%

15.3% 15.7%

18.4% 19.9% 20.0%88.6% 87.7% 86.3% 86.0%

Italy(102)

Netherlands(99)

Spain(97)

Finland (27)

Czech Republic(14)


2,796 2,004

587 584338 526335 387

186 337

London Stock Exchange(166)

Business Entity Data BV(418)

Ubisecure (6)

CORPME(91)

Business Entity Data BV(418)

Bloomberg(71)

Bloomberg(71)

WM Datenservice(129)

EQS(38)



Each legal entity reports information on its ultimate parent3:

Each legal entity reports information on its direct parent2:

Level 2 data report

Q1 2019


79% of legal entities reported having no ultimate parent according to the definition used

7% of legal entities reported ulti-mate parents having an LEI4

(See next page for additional details.)

5% of legal entities reported ulti-mate parents who do not have an LEI

9% of legal entities cited legal obstacles preventing them from providing or publishing ultimate parent information

1,196,022 legal entities reported level 2 data by the end of Q1 2019

7% of legal entities reported direct parents having an LEI4

(See next page for additional details.)

6% of legal entities reported direct parents who do not have an LEI

79% of legal entities reported having no direct parent according to the definition used

8% of legal entities cited legal obstacles preventing them from providing or publishing direct parent information

1 Referenced to level 2 relationship record CDF concatenated file dated 02 April 20192 99.9% legal entities reported direct parent3 99.9% legal entities reported ultimate parent4 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

Top 5 jurisdictions of the legal entities for level 2 reporting | Fig.-1

132,145120,800

101,11892,734 88,583

Spain NetherlandsUnited States

United Kingdom

Germany

In May 2017, the process of enhancing the LEI data pool, by including ‘Level 2’ data to answer the question of ‘who owns whom’, began. The graphic below provides information on direct and ultimate parent data collected through March 20191.



Level 2 data report

Q1 2019


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.

Validation status of the direct parent relationship | Fig.-2

5.2% Partially corroborated

62.4% Entity supplied only

32.4% Fully corroborated

Validation status of the ultimate parent relationship | Fig.-4

6.2% Partially corroborated

54.6% Entity supplied only

39.2% Fully corroborated

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)).

Number of direct parents | Fig.-3

1 2 3 4 5 5 plus

Number of child entities per parent

Tsd.

25

20

15

10

5

0

Number of ultimate parents | Fig.-5

1 2 3 4 5 5 plus

Number of child entities per parent

Tsd.

14

12

10

8

6

4

2

0

Additional information on ultimate parents having an LEIAdditional information on direct parents having an LEI


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