Which statement about LEI is true?

• A. It is a local identifier used only in one country
• B. It is a code for commodity types
• C. It is a type of stock ticker
• D. It is the legal entity identifier with broad global support

Answer: (D)

LEI is a globally standardized identifier for legal entities in financial markets, designed to uniquely and unambiguously identify counterparties in transactions across borders. This isn’t a local identifier restricted to one country, nor a code for commodities, nor a stock ticker. The true statement is that it is a legal entity identifier with broad global support, issued under ISO 17442 and managed by the Global Legal Entity Identifier Foundation (GLEIF) with local operating units. The LEI provides a consistent reference for regulators and market participants, improving transparency and risk assessment in reporting and due diligence.