The LEI code will become mandatory for issuers on the regulated market of the Bratislava Stock Exchange. By Zuzana Milanová, Head of GSS Slovakia
The Bratislava Stock Exchange (BSSE) is required – starting from 1 July - to send modified reports to the ESMA within the framework of a defined mechanism for data transmission, and to identify any issuer using a Legal Entity Identifier (LEI) as a company whose securities are admitted to trading on the regulated market.
Issuers with a registered office in the Slovak Republic and Czech Republic can apply for the assignment of a LEI at the Central Securities Depository of the Slovak Republic (CDCP), using a web form that is available at the CDCP SR’s website.
Issuers of securities admitted to the regulated market must notify BSSE of their Legal Entity Identifier (LEI) by 30 June at the latest. If the issuer does not inform BSSE by that date, the BSSE will be entitled to suspend the trading of the issuer’s securities on the regulated market. LEI codes will allow for a harmonised and unambiguous identification of legal entities thus increasing confidence especially in business relations.
The new MiFID II regulatory package, due to come into effect on 3 January 2018, includes the requirement for market operators to create the Financial Instruments Reference Data System (FIRDS). In order to fulfil this task, data links must be established - within the FIRDS - between the European Securities and Markets Authority (ESMA) and the Bratislava Stock Exchange (BSSE) among others.
Due to extensive amendments to Act No 566/2001 on Securities and Investment Services in connection with the transposition of the MiFID II package, the BSSE will work on a revision of the Stock Exchange Rules where the LEI requirement will be taken into account and defined as a mandatory identifier of an issuer.
The introduction of the universal LEI codes will ensure better monitoring of the rate of systematic risk and, at the same time, increase the efficiency of instruments aggregating the level of risk for companies.
Zuzana Milanová
Head of Global Securities Services Slovakia