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?
Why did the OFR get involved in establishing the global LEI and what is the OFR’s role?
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?
If a global LEI is so useful, why hasn’t it already been established?
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?
Why do we need a global LEI?
The establishment of a global LEI system will be a significant achievement in responding to the vulnerabilities of the global financial system and will provide meaningful long-term benefits for both the public and private sectors. When Lehman Brothers collapsed in 2008, financial regulators and private sector managers were unable to assess quickly the extent of… Continue reading Why do we need a global LEI?
What is a global LEI?
The LEI is a reference code to uniquely identify a legally distinct entity that engages in a financial transaction. Currently, there are many ways to identify entities, but there is no unified global identification system for legal entities across markets and jurisdictions. The LEI will be a linchpin for financial data—the first global and unique… Continue reading What is a global LEI?
ZERO COUPON BOND
Zero coupon bonds are bonds that do not pay interest during the life of the bonds. Instead, investors buy zero coupon bonds at a deep discount from their face value, which is the amount the investor will receive when the bond “matures” or comes due. The maturity dates on zero coupon bonds are usually long-term—many… Continue reading ZERO COUPON BOND
YIELD CURVE
A line graph that shows the relative yields on debt over a range of maturities from three months to 30 years. Investors, analysts and economists use yield curves to evaluate bond markets and interest rate expectations.
YIELD
The annual percentage rate of return earned on a bond calculated by dividing the coupon interest rate by its purchase price.
WRAP ACCOUNT
A wrap account is an investment account where a “wrapped” fee or fees cover all of the management, brokerage and administrative expenses for the account. The fee or fees are generally based on the total market value of the investment account. Learn more
WASH SALES
A wash sale occurs when you sell or trade securities at a loss and within 30 days before or after the sale you: Buy substantially identical securities, Acquire substantially identical securities in a fully taxable trade, or Acquire a contract or option to buy substantially identical securities. Internal Revenue Service rules prohibit you from deducting… Continue reading WASH SALES