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The whole story, as many regulatory proposals of recent days, started just after the 2007-2009 critical period when G20 members and their respective authorities noticed that they were unable to identify some market transactions and among them the now intensely debated OTC derivatives. In the EU a solution has been found for these specific instruments: the EMIR regulation (and for the US the all-encompassing Dodd-Frank act). One problem remains unsolved: a transaction may be known but not who will be in charge of these transactions and how they might be linked within an international system.
...There comes the Legal Entity Identifier (LEI)
The LEI will with more precision address what the BIC code has...
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