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 reducing regulatory reporting costs. In addition, a global LEI would provide long-term benefits by enhancing the ability to perform business functions such as “know your customer” and improving enterprise risk management.