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Alacra Inc., an Opus Global company, and the leading provider of compliance and reference data solutions for financial institutions, corporations and professional service firms, has issued Inside the LEI, issue VII, its regular update on Legal Entity Identifiers (LEIs).
Inside the LEI is a quarterly newsletter that analyzes the LEI databases and the progress made in LEI registrations around the world. This issue takes a close look at the problem of lapsed LEIs.
Alan Samuels, vice president of Alacra Reference Data Solutions, says: “Focusing on the LEIs issued at least a year ago (and thus coming up for renewal), the lapse rate for entities which have been issued with LEIs in 2014 (prior to September) is only 23%, while the lapse rate for entities issued LEIs in 2013 is 36% and for entities issued LEIs in 2012 is 27%.” He adds: “While around 28% of all LEIs have not been renewed, it is interesting to note that among the listed, rated and regulated universe of entities with LEIs the overall lapse rated is lower, coming in at under 23%. We would expect the overall lapse rate to continue to decrease as more rated, regulated and/or listed entities are assigned LEIs.”
Alacra has also seen the development of the ’Super-LOU’ (Local Operating Unit), with three organizations in the US, UK and Germany actively marketing their services, and in some cases competing with each other, each assigning LEIs in more than 100 countries. While some LOUs are merely ’filling the gap’ by being a source of LEIs for neighboring countries (which don’t have their own LOU), we are seeing ’Super-LOUs’ actively operating in other jurisdictions, even those with their own LOUs.
Since LEI registration began in 2012 more than 385,000 entities have been assigned an LEI. In line with growth over the last year, LOUs continue to issue around 20,000 LEIs per quarter; this growth continues to be driven by a very small number of LOUs. Almost half of all LEIs to date have been issued by just one LOU, the US-based GMEI, and over 80% of the LEIs have been issued by only 4 LOUs – GMEI (US), WM Datenservice (Germany), London Stock Exchange (UK) and Unione Italiana per le Camere di Commercio, Industria, Artigianato e Agricoltura (Italy).
