GlossaryGuide

Participants in the LEI Implementation Group (IG) were selected through nominations from FSB members and other public sector stakeholders. For continuity purposes, the IG includes members who participated in the development of the FSB’s recommendations for the global LEI system.

The FSB’s recommendations outline a “federated” model for LEI implementation. Local Operating Units (LOU) will assign LEIs, and validate and maintain reference data. The Central Operating Unit (COU) will ensure that LEIs are unique and of high quality and that parties that implement the LEI adhere to its governing principles and quality standards.

The FSB’s recommendations do not select a solution. Rather, they set out a governance structure and process for developing and implementing a global LEI system. The FSB is supporting an open process; all vendors adhering to guidance set up by the FSB will be considered. The COU and LOUs might use multiple solution providers or… Continue reading Do the FSB recommendations support the trade associations’ proposed solution that was put forth in July 2011?

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?