A Legal Entity Identifier (LEI) is a 20-character, alphanumeric code that uniquely identifies companies and other legal entities participating in financial transactions. It is part of a global reference system designed to ensure consistent and transparent identification across financial markets.
In the EU, you need a LEI if your company is involved in financial market activities, such as trading financial instruments. Regulations require financial institutions to identify all legal entities involved in such transactions. Without a valid LEI, you will not be able to trade many common financial instruments.