On January 3, the new regulation on financial markets and instruments, based on the MiFID II Directive and the MiFIR Regulation, will enter into force.
http://cnmv.es/portal/MiFIDII_MiFIR/MapaMiFID.aspx
The new regulation will require all legal entities operating in securities markets to have an identification code (LEI). This is a 20-character alphanumeric code that enables the identification of legal entities participating in financial transactions.
This code is necessary for financial institutions to comply with the information reporting obligations arising from financial regulations and directives and, consequently, it is necessary for clients operating through a company in securities markets to be able to continue doing so.
The LEI code is unique worldwide and enables operations in different markets. It makes it possible to identify risk in each financial transaction and therefore provides transparency and improves market oversight.
The Mercantile Registry is the institution that issues the code in Spain, although authorities in other countries may also do so. What will happen from January 3 if you are a legal entity and do not have an LEI? The institution you work with will request your LEI and, if you do not have it, it will not be able to process the financial order (buy or sell in the market) until you provide it.
