Avox has posed a 25% year-on-year gain in the number of entities it has validated, bringing its total database of entities with validated reference data to over a million. The million-entity milestone comes against the backdrop of the imminent launch of the global legal entity identifier (LEI) standard, which was the subject of last week’s Reference Data Review webinar on how to benefit from the emerging standard.
As well as operating its own entity database, Avox supports the CICI Utility database of so-called pre-LEIs by virtue of its parent, DTCC, which runs the utility in partnership with Swift.
Avox attributes the 25% gain and one million entities milestone to financial firms’ increasing need for accurate and validated entity reference data to meet regulatory requirements and transaction and risk reporting obligations.
Mark Davies, general manager and head of Avox, says: “The growth in the number of entities with validated reference data in the Avox database follows, in part, the regulatory agenda, particularly the reporting requirements of Dodd-Frank and EMIR. There are also requirements around the Foreign Account Tax Compliance Act that spotlight the need for validated entity reference data.”
He continues: “We are working with firms to ensure they have the right company data to meet the requirements of these regulations. Going forward, we expect greater growth in the number of entities we validate and will expand the database, while maintaining the quality standards that our clients have come to expect.”
Replicating a Regulatory Reporting File subscription service introduced last year that adds Avox-sourced legal entity, hierarchy, regulatory and address information to Commodity Futures Trading Commission interim counterparty identifiers, or CICIs, mandated by Dodd Frank for reporting OTC derivatives transactions, Avox will soon make available a similar Regulatory Reporting File to support clients that must meet EMIR reporting requirements. The European Securities and Markets Authority recently set September 23 as the start date for EMIR reporting.
In terms of CICIs and ahead of the introduction and build out of the global legal entity identifier (LEI) system, Davies says Avox is working with clients to match CICI codes to their own internal client data records and is helping them source additional fields required by international regulators. The CICI utility, served by Avox, has issued more than 50,000 CICIs to date. Avox continues to map these pre-LEIs back to Avox legal entity AVIDs.