LEI for Trading Stocks and Securities
If your entity wants to buy or sell shares, bonds or other securities, an LEI is a practical precondition.
Why an LEI is required
Under MiFID II, the "no LEI, no trade" rule applies: an investment firm cannot execute a reportable securities transaction for a legal entity that lacks a valid LEI. This covers shares, bonds, fund units and other financial instruments.
Who it applies to
It affects every legal entity that trades in securities — from a large listed company to a Sàrl or SA investing its reserves, as well as investment vehicles. Before your first transaction, your broker or bank will most likely request your LEI.
The Luxembourg context
In Luxembourg, securities-market supervision is carried out by the CSSF (Commission de Surveillance du Secteur Financier).
See also Who needs an LEI? and LEI for investment funds.