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Securities Lending Market Report | June 2021

>>> Although the number of issuers who are missing LEIs is decreasing,
it remains a significant issue

Looking beyond the TR public data, using data gathered by From data received from IHS Markit, we were able to
ISLA we can look at the state of LEI coverage. Following a compare the 47,570 submitted ISINs with the GLEIF LEI
joint communication by ISLA, ICMA, AFME, and AMAFI, database, and found that 37,207 ISINs were missing an
both the UK (FCA) and EU (ESMA) regulatory authorities LEI. Of the total submitted ISINs this represented 78.22%
extended the forbearance for a further one year and 18 of submitted ISINs missing an LEI. Re-analysing the data in
months respectively. A welcome respite, however significant June 2021 shows that this figure has improved by 15.28%
further work is required to avoid a cliff edge when the to 62.94%. We are pleased to see ISLA’s advocacy efforts
extended forbearance periods end. start to bear fruit in this space, however further work is
required to continue closing this LEI gap before the end of
In February 2021 as we edged towards the end of the the extended forbearance period.
first LEI forbearance period granted by ESMA in April
2020 (which allowed firms an additional year of not ISLA will be coordinating another large LEI study to discover
being obligated to report the LEI of issuers for non-EEA the widest possible view of missing LEIs in Q3 2021. We will
securities) ISLA conducted an extensive study regarding the also be working with GLEIF and ANNA to promote global
state of global LEI coverage with the help of members who use of LEIs through initiatives such as GLEIF’s Registration
submitted ISINs which were missing an LEI in their internal Agent programme (Registration Agents - Get an LEI: Find LEI
static data. Issuing Organizations - About LEI – GLEIF) and ANNA’s LEI
mapping project (ISIN to LEI Mapping Initiative - Association
of National Numbering Agencies (ANNA)).

Fig 14 - ISLA & IHS Markit Conclusion

Missing LEI of Issuer Although the data provided by TRs required further work to improve the
data quality, there are clearly trends that are consistent with broader market
100%
90% sentiment. We hope to see the data quality improve over time, and ISLA will
80% 78.2% continue to track these indices to gain a deeper understanding of securities
70% 63%
60% lending markets.
50%
40% 33.7% What are your thoughts? We would welcome any feedback and questions
30% 21.4%
20% from readers.
10%
0 0.4% 0.4%
LEI Issuer Found LEI Issuer Not Found Security Not Found
Feb 2021 Jun 2021

More details and further breakdown of these statistics can be found here:
https://www.linkedin.com/pulse/lei-issuer-securities-financing-transaction-que-phuong-dufournet-tran/