Higher data quality due to increasing renewal rate in the third quarter

2 marraskuun 2022

The importance of the Legal Entity Identifier (LEI) continues to grow globally, and the Global Legal Entity Identifier Foundation (GLEIF) proudly reports on the latest developments in transparency and data quality. Through its quarterly LEI System Annual Reports, GLEIF provides comprehensive access to the latest LEI data, helping to strengthen global market transparency. The newest edition of the ’LEI in Figures blog series offers exciting insights into the latest trends and progress around the LEI.

Global LEI figures in the third quarter of 2022

More than 50,000 new LEIs were issued globally in the third quarter of 2022, bringing the total number of active LEIs to 2.12 million – a quarterly growth rate of 2.4%. This increase in LEI registrations is a further step towards greater transparency and trust in international business relationships as more organisations register and keep their data up to date.

This will help recognise changes, contributing to higher data quality and relevance in the Global LEI System.

The importance of renewals for data quality

The renewal rate for LEIs reached 61.9% in the third quarter, an increase in both EU countries (64.5%) and non-EU countries (57.2%). Particularly noteworthy are countries such as Japan, with a renewal rate of 91.4%, followed by Luxembourg (89.7%), Finland (88.2%), Norway (81.6%) and India (80.4%). These developments show that companies worldwide increasingly recognise the benefits of regular LEI renewals, contributing to higher data quality and relevance in the Global LEI System.

Competition and growth rates in various markets

According to the third quarterly report for 2022, Saudi Arabia recorded the highest growth rate in LEI registrations for the second consecutive quarter, with an increase of 29.5%. Iceland, Croatia and India follow in second place, which shows a strong interest in standardised identification systems in these countries. New Zealand entered the group of top growth regions, partly due to regulatory requirements that oblige New Zealand companies to register an LEI.

New data formats for greater transparency and insights

In March 2022, GLEIF introduced new LEI data formats promoting transparency. These formats expand the scope of data collected and enable legal entities to identify themselves better. In the third quarter, for example, over 4,600 legal entities were classified as government entities and 19 as international organisations. In addition, around 73,000 legal entities reported fund relationships, a significant increase compared to the previous quarter.

Conclusion

With the quarterly reports, GLEIF ensures that the latest data on the LEI and its use is transparently accessible. The steady increase in LEI renewals and new data formats in the Global LEI System promotes trust and transparency in international markets. Companies renewing their LEI actively contribute to improving data quality, creating a solid foundation for informed business decisions worldwide.