Author: SEC

By providing a universal, unique, authoritative identifier for each entity in financial transactions, a global LEI will provide a valuable risk management tool for aggregating data on exposures. However, while the LEI is critical on its own, it is not sufficient to provide a complete view on the aggregate exposures of any one entity to… Continue reading Will the LEI facilitate aggregation of exposures and risks?

Members of the public-private partnership that developed the FSB recommendations are acutely aware of the need for high-quality data. Thus, the LEI Implementation Group contains members with expertise in fields such as law, operations, and technology, to provide guidance on delivering an efficient and high-quality global LEI system. Also, private industry will provide valuable consultation… Continue reading How will quality be assured in such a widespread “federated” model for governing the LEI?

As the global LEI becomes more widely used, we and many industry participants expect the LEI to decrease costs and improve risk management, at the firm level and across the system. These savings would come primarily from operational efficiencies, such as reducing the volume of transaction failures; lowering data reconciliation, cleaning, and aggregation costs; and… Continue reading How will an LEI system benefit industry?

To support use of the global LEI, the FSB’s recommendations allow for jurisdictions to serve as early adopters of a global LEI. In the United States, the Commodity Futures Trading Commission (CFTC) has issued a rule requiring swap counterparties to be identified by a legal entity identifier by July 16, 2012. Because the global LEI… Continue reading What is the CFTC’s “interim-LEI,” the CICI, and how are regulators assuring it remains consistent with the global LEI?

The OFR is committed to promoting widespread adoption of the global LEI and we expect that many government agencies across the globe will require its use. The global phase-in of the LEI will be driven by the legislative and rule making processes of each jurisdiction requiring the use of the LEI and by the adoption… Continue reading When will the LEI become widely or comprehensively used by market participants and regulators?

The G-20’s endorsement of the FSB’s recommendations to implement a global LEI, consistent with the specifications of the International Organization for Standardization (ISO 17442:2012), gives firms a standard against which to build and test technology and workflow processes in preparation for the global LEI. Firms can also participate in the preparatory work for the LEI… Continue reading What can firms start doing now?

Following G-20 endorsement of the FSB’s recommendations in June 2012, the FSB established the LEI Implementation Group (IG) to move the global LEI system toward the goal of having the system launched by March 2013. The IG is a time-limited and task-limited group of experts from the global regulatory community, focused on areas such as… Continue reading What are the next steps in establishing the global LEI and when will it be up and running?

The LEI system is an alphanumeric code and associated set of six reference data items to uniquely identify a legally distinct entity that engages in financial market activities. This global standard is endorsed by the G-20 and is consistent with the specifications put forward by the International Organization for Standardization (ISO 17442:2012) in May 2012:… Continue reading How will the LEI system work?

A key element of the OFR’s mandate is to improve the quality and scope of financial data by assessing gaps in data standards and helping to fill them for the benefit of market participants, regulators, and research communities. Working to establish a global LEI system is an essential step in fulfilling that mandate. In November… Continue reading Why did the OFR get involved in establishing the global LEI and what is the OFR’s role?

Private industry has made several attempts over the past 20 years to establish a global entity identification system. However, private sector firms and industry associations have been unable to achieve the level of coordination needed to launch a single global solution. The consistent and coordinated global commitment by members of the FSB and G-20 to… Continue reading If a global LEI is so useful, why hasn’t it already been established?