The root of the problem was the large number of legal entities, scattered across the world, with no uniform international method of identification. 1  The LEI was therefore introduced to address this problem and in 2012, the G20 endorsed the LEI System as a global standard.
The objective of the G20 is the “global adoption of the LEI to support authorities and market participants in identifying and managing financial risks”. Since it was introduced, over 1.5 million entities in over 200 countries have registered for an LEI. The LEI has seen widespread adoption in several financial markets most notably in the over-the-counter derivatives markets.