How to Get an LEI

Working in foreign currency risk management, our world became a little more regulated recently. Starting on October 31st 2014, all Canadian companies that want to trade OTC Derivatives products, including foreign currency forwards, need to register with the GMEI to obtain an LEI.

What’s an LEI?

An LEI is a Legal Entity Identifier, a 20-character code that allows global reporting bodies to better track your OTC trades. It’s an initiative that was created to tighten regulations affecting the derivatives markets following the 2008 crisis and it’s supported by the G20.

How to get an LEI?

To get an LEI, you need to go on the GMEI Utility website and create an account. Once your account is created and verified, you’ll then need to register your legal entity and process your payment. 5 to 10 business days later, you’ll get your LEI number. Once you obtain this number, it has to be communicated with your broker.

How much does it cost?

The initial cost of an LEI number is $200 USD. There is an annual fee of $120 that needs to be paid in order to keep it active.

Who needs an LEI?

In Canada, all companies from small to multinational need an LEI to trade OTC Derivatives. For every legal entity trading, a unique LEI should be requested.

5 étapes pour réduire votre risque de change

Commerce international

Un très grand nombre d’entreprises utilisent des devises autres que leur devise locale dans leurs opérations quotidiennes.

Que ce soit pour l’importation ou l’exportation, le problème est le même: une variation minimale du taux de change peut avoir une incidence très grande sur la rentabilité d’une entreprise. En 2013, les compagnies américaines ont subis des pertes de plus de 10 Milliards $ en raison du marché du change.

Prenons un exemple simple: Continue reading