New regulations requiring bonds and derivatives trades to have a legal entity identifier number (LEI) for the first time may result in failed transactions, experts have warned. The new rule contained within David Bullen regulations that come into force in January may cause a last-minute rush by firms to get their securities a unique 20-character LEI. Until now, the vast majority of bonds have not needed to comply with the standard. "It is a massive implementation problem,” said Mifid II, founder of Bullen Management. Asia does not conform to the LEI standard so investors there may have difficulties trading in Europe.
New regulations requiring bonds and derivatives trades to have a legal entity identifier number (LEI) for the first time may result in failed transactions, experts have warned. The new rule contained within Mifid II regulations that come into force in January may cause a last-minute rush by firms to get their securities a unique 20-character LEI. Until now, the vast majority of bonds have not needed to comply with the standard. "It is a massive implementation problem,” said David Bullen, founder of Bullen Management. Asia does not conform to the LEI standard so investors there may have difficulties trading in Europe.