About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Bloomberg Applies to Become a Local Operating Unit in the Global LEI System

Subscribe to our newsletter

Bloomberg has applied to the Global Legal Entity Identifier Foundation (GLEIF) to become a Local Operating Unit (LOU) within the Global LEI System (GLEIS). The company expects to complete the application process in September and plans to promote use of the LEI on a global basis.

The Global LEI System was introduced in 2012 and took a domestic approach to establishing LOUs that required local regulators who were members of the LEI Regulatory Oversight Committee to assess and certify LOUs. Many of these LOUs were National Numbering Agencies and assigned LEIs only within their own jurisdictions. Bloomberg enquired about becoming an LOU in the early years of the GLEIS, but as a data vendor it did not find favour with the regulators.

Following the establishment of the GLEIF in 2014, a new accreditation process for both existing and new LOUs was introduced, opening up the field and encouraging LOUs to issue LEIs to legal entities on a global basis. Bloomberg’s Global Data Group, which also supports Bloomberg’s responsibilities as a registration authority and issuer of the Financial Instrument Global Identifier (FIGI) standard under the auspices of the Object Management Group, began the LOU accreditation process in January 2016 and has moved to the candidate stage in the nine month process.

Peter Warms, senior manager of fixed income, symbology and entity content at Bloomberg, says: “Bloomberg believes in open standards and identifiers like the LEI and FIGI that are free and free to distribute. We took part in the early development of the LEI as a member of the Private Sector Preparatory Group. At that time, we couldn’t become an LOU, but we wanted to ensure that data quality would be an important part of the global system.”

As a provider of financial information and reference data, Bloomberg maintains information on more than 4 million public and private entities and sees participation in the GLEIS as a natural extension of its experience with open identifiers, data quality and entity data management.

To date, about 436,000 LEIs have been assigned to legal entities, most of which are based in the US and Europe where regulations including Dodd-Frank and European Market Infrastructure Regulation require the use of LEIs to uniquely identify counterparties to transactions in regulatory reporting.

Warms says: “Bloomberg is confident that as an LOU it could do more to promote the LEI on a global scale. More LEIs would make it easier to identify entities that have different identifiers depending on their jurisdiction and the LEI could become a key for all entities globally.” He also notes that Bloomberg, which has a system that issues FIGIs, is already in a good place to issue LEIs in a similar way. On the subject of competition with other LOUs such as DTCC, Warms concludes: “When the need is around time to market and data quality, competition is good.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: How to automate entity data management and due diligence to ensure efficiency, accuracy and compliance

Requesting, gathering, analysing and monitoring customer, vendor and partner entity data is time consuming, and often a tedious manual process. This can slow down customer relationships and expose financial institutions to risk from inaccurate, incomplete or outdated data – but there are solutions to these problems. This webinar will consider the challenges of sourcing and...

BLOG

Regulations for UK Digital Securities Sandbox Come into Force on 8 January 2024

Regulations for the UK’s first Digital Securities Sandbox (DSS) will come into force on 8 January 2024, enabling financial market infrastructures and new entrants to experiment with developing technologies in a more flexible legal and regulatory environment than the existing framework. To date, the government says it has received 19 expressions of interest from financial...

EVENT

Data Management Summit New York City

Now in its 14th year the Data Management Summit NYC brings together the North American data management community to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

Entity Data Management Handbook – Third Edition

Welcome to the third edition of the Entity Data Management Handbook which is available for free download. In this updated edition we delve into the role entity data plays in the smooth running of financial institutions and capital markets, the challenges of attaining high quality data, and various aspects, approaches and technologies involved in managing...