LEI for Trading Stocks and Securities
If your company 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 an SRL or SA investing its reserves. Before your first transaction, your broker or bank will most likely request your LEI.
The Belgian context
In Belgium, securities-market supervision is carried out by the FSMA (the Financial Services and Markets Authority).
See also Who needs an LEI? and LEI for investment funds.