Global LEI System Business Report Q2 2019

Transcription

1 Global LEI System Business Report Q2 209

2 Global LEI System Business Report Q2 209 page 02 Summary LEI issuance and LEI growth potential: State of play At the end of the second quarter of 209, the total Legal Entity Identifier (LEI) population exceeded. million. Approximately 7,000 LEIs were issued in this timeframe compared to approximately 5,000 in the previous quarter. This represents a quarterly growth rate of.% in the second quarter (previous quarter:.%). In the second quarter, Mauritius saw the highest LEI growth rate at a jurisdiction level (7.2%). It was followed by China (6.2%), India (7.6%), Australia (.2%), and Turkey (0.%), where growth can primarily be 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,000 LEIs, based on the number of LEI issuers providing services in the jurisdiction. In the second quarter of 209, Italy, the Netherlands, Spain, Finland and the Czech Republic were the five least competitive markets in descending order. The five most competitive markets, also in descending order, were Lithuania, Romania, Portugal, Malta and Bulgaria. 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 second quarter of 209, the overall renewal rate ¹ of 70.5% remained essentially unchanged compared to the previous quarter (70.8%). At the end of the second quarter, 7.% of all LEIs were in good standing (last quarter: 7.%). The renewal rate in the EU remained stable at 7.5% (previous quarter 7.7%). In non-eu jurisdictions, it improved to 60.% (previous quarter: 59.7%). In the reporting period, the five jurisdictions which demonstrated the highest renewal rates were Finland (9.%), India (92.9%), Japan (92.2%), Liechtenstein (9%) and Norway (8.8%). Brazil (5.5%), the United States (5.%), the Russian Federation (8.%), the United Kingdom (6.7%) and South Africa (5.7%) had the highest non-renewal rates. Level reference data corroboration The business card information available with the LEI reference data, which includes the official name of a legal entity and its registered address, is referred to as Level data. It defines who is who. The Level 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 second quarter of 209, the percentage of fully corroborated Level reference data within the entire LEI population increased slightly to 79.% from 78.8% in the previous quarter. Statistics on the reporting of parent information by legal entities In the second quarter of 209, approximately.25 million LEI registrants, representing 89% 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, the percentage reporting a direct parent that has an LEI remains stable at 7%. The share reporting a direct parent that does not have an LEI further decreased by %, from 6% to 5%. 8% reported an ultimate parent that has an LEI (previous quarter: 7%). The percentage reporting an ultimate parent that does not have an LEI remains stable at 5%. This includes jurisdictions with at least,000 LEIs in total at the previous quarter-end date.

3 Global LEI System Business Report Q2 209 page 0 Level data report Q2 209 Active LEIs Total Number of Active LEIs by Jurisdictions Fig ,705 5,80 27, ,22 89,0, ,58,67 20,705 2, , , ,5 7,92 8, ,72 9, ,28 5,8 0,00 05,775 6,25 2,08,6,557 2,98 6,6 02, , ,02 2,98 2 5,75, , , ,76 5, ,7 8,5, ,70, ,

4 Global LEI System Business Report Q2 209 page 0 Active LEIs Total LEI Trend-Top 5 Jurisdictions Fig.-2 Total LEI Trend-Top 5 LEI issuers Fig Q 208 Q 208 Q 209 Q2 209 Q 208 Q 208 Q 209 Q2 209 United States United Kingdom Germany Italy Netherlands Business Entity Data BV London Stock Exchange WM Datenservice InfoCamere Kamer van Koophandel (KvK)

5 Global LEI System Business Report Q2 209 page 05 Growth in Total Number of Active LEIs New LEI Issuance Fig.- New issuance Total LEI issued LEI Forecast Fig.-5 Forecasted Active LEI Actual Active LEI,500,250,57,000,58,872,0,000,05,629,58,000,506,000, Q 208 Q 208 Q 209 Q2 209 Q 209 Q2 209 Q 209 Q 209 Quarterly LEI Growth Top 5 Jurisdictions Fig.- 6 Quarterly LEI Growth Top 5 LEI issuers Fig % 6.2% 85.0% 7.6%.2% 0.% 9.5%.6%.9% 8.6% Mauritius (2) China (5) India (26) Australia (5) Turkey (2) Ubisecure () CFSTC (5) LEIL (2) Takasbank (2) EQS () Growth rate of jurisdictions Growth rate of LEI issuers. Analysis includes only those jurisdictions with at least,000 LEIs in total at the previous quarter-end date

6 Global LEI System Business Report Q2 209 page 06 LEI Renewal Activity LEI Renewal Top 5 Jurisdictions Fig.-9 LEI Renewal Fig.- 8,500 9.% 92.9% 92.2% 9.0%,250 Total Active LEIs 8.8%, Active and Verified LEIs Finland (27) India (26) Japan (8) Liechtenstein () Renewal ratios of jurisdictions Norway (26) Q 208 Q 208 Q 209 Q2 209 Reference Data Corroboration by LEI issuers LEI non-renewal (Lapsed LEIs) Top 5 Jurisdictions Fig.-0 Percentage of Fully Corroborated LEIs Fig.- 5.5% 5.% 8.% 6.7% 5.7% 76.6% 78.2% 78.8% 79.% Brazil (2) United States (89) Russian Federation () United Kingdom (8) South Africa () Non-Renewal ratio of jurisdictions Q 208 Q 208 Q 209 Q Analysis includes only those jurisdictions with at least,000 LEIs in total at the previous quarter-end date

7 Global LEI System Business Report Q2 209 page 07 Competition amongst LEI issuers Least Competitive (Most Concentrated) Markets Fig.-2 Most Competitive (Least Concentrated) Markets Fig.- 89.% 88.5% 87.% 86.% 85.7%.9%.9% 7.% 9.7% 20.% Italy (06) Netherlands (00) Spain (0) Finland (27) Czech Republic (5) Lithuania () Romania () Portugal (6) Malta () Bulgaria () Concentration score of jurisdictions Concentration score of jurisdictions Transfers out of LEIs Top 5 LEI issuers Fig.- Transfers in of LEIs Top 5 LEI issuers Fig.-5,86, Business Entity Data BV (27) London Stock Exchange (68) EQS () WM Datenservice () CORPME (95) Ubisecure () Bloomberg (77) EQS () GS AISBL () Business Entity Data BV (27) Number of LEIs transferred out Number of LEIs transferred in Analysis includes only those jurisdictions with at least,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.

8 Global LEI System Business Report Q2 209 page 08 Level 2 data report Q2 209 In May 207, 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 June 209.,26,956 legal entities reported level 2 data by the end of Q2 209 Top 5 jurisdictions of the legal entities for level 2 reporting Fig.- 5,58 United Kingdom 27,62 United States 0,779 Germany 96,625 92,22 Spain Italy Each legal entity reports information on its direct parent 2 : Each legal entity reports information on its ultimate parent : 7% reported direct parents having an LEI (See next page for additional details.) 5% reported direct parents who do not have an LEI 80% reported having no direct parent according to the definition used 8% cited legal obstacles preventing them from providing or publishing direct parent information 8% reported ultimate parents having an LEI (See next page for additional details.) 5% reported ultimate parents who do not have an LEI 79% reported having no ultimate parent according to the definition used 8% cited legal obstacles preventing them from providing or publishing ultimate parent information Referenced to level 2 relationship record CDF concatenated file dated 02 July % legal entities reported direct parent 99.9% legal entities reported ultimate parent The definitions of ultimate and direct parent are based on percentage share of accounting consolidation as per LEI Regulatory Oversight Committee prescription. Related link

9 Global LEI System Business Report Q2 209 page 09 Level 2 data report Q2 209 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. Additional information on direct parents having an LEI Additional information on ultimate parents having an LEI Validation status of the direct parent relationship Fig.-2 Number of direct parents Fig.- Validation status of the ultimate parent relationship Fig.- Number of ultimate parents Fig % Fully corroborated 5.% Partially corroborated % Fully corroborated 6.% Partially corroborated % Entity supplied only plus Number of child entities per parent 5.9% Entity supplied only plus Number of child entities per parent 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., Relationship Record (RR) CDF format version. and Reporting Exceptions format version. 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)).