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

Talking Reference Data with Andrew Delaney: Just When You Thought It Was Safe…

Subscribe to our newsletter

The CFTC yesterday approved approved the DTCC’s application to run a multi-asset class swap data repository (SDR) in the US, with the promise of increased transparency in the OTC derivatives marketplace. The depository – slated for launch on October 12 – doubtless will make use of the CICI interim legal entity identifier, cementing that nomenclature’s place in the roadmap toward a standard global LEI framework during 2013. Details here.

And then…

The Financial Stability Board (FTB) pretty much at the same time released a progress note on its plans for the global LEI system that outlined an “urgent study” into the format of the 20-digit identifier. This would seem to throw a cat among the proverbial pigeons: many in the industry had reached the conclusion that the LEI will be a random number containing no s0-called intelligence. Does the urgent review – to be undertaken by the Private Sector Preparatory Group (PSPG) over the coming week (!) and reported on September 28 – hit that assumption out of the ballpark?

Quite possibly.

The debate over whether to add intelligence to the LEI number has raged all summer. But we thought it had simmered down with the broad assumption that they nays had outrun the yays. Seems we were wrong…. We’ll know in a week. Here’s what the FSB had to say:

“Number allocation scheme for the Global LEI system: The [LEI Implementation Group] has commissioned an urgent study from the Private Sector Preparatory Group (PSPG) on the appropriate numbering scheme for the global LEI system. A number of experts have recently emphasised the importance of the identifier generation scheme in terms of the flexibility, costs, and operational requirements of the LEI system from the stand-point of short-term implementation and integration of local systems, as well as long-term flexibility and resilience of the global system. Interested PSPG experts are asked to prepare recommendations by September 28 to enable the IG to develop a proposal for the final global LEI system numbering scheme.”

Elsewhere within the progress note, the FSB outlines its plans for establishing the global governance structure for the LEI ahead of next March’s planned launch.

The next major step – aside from the report from the IG’s “urgent “review” – will be a “Global Legal Entity Identifier (LEI) System Operational Solution Demonstration Day on 15 October in Basel, Switzerland.”

Book your tickets now.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Hearing from the Experts: AI Governance Best Practices

The rapid spread of artificial intelligence in the financial industry presents data teams with novel challenges. AI’s ability to harvest and utilize vast amounts of data has raised concerns about the privacy and security of sensitive proprietary data and the ethical and legal use of external information. Robust data governance frameworks provide the guardrails needed...

BLOG

FCA Derivatives Trading Obligation: Why GRC Teams Should Watch Article 28a Closely

The FCA’s latest announcement on the UK derivatives trading obligation (DTO) landed quietly on July 17, but its impact is more than a short web statement. By invoking its brand-new power of direction under Article 28a of onshored MiFIR, the regulator has replaced the post Brexit Temporary Transitional Power (TTP) transitional regime with a standing...

EVENT

Buy AND Build: The Future of Capital Markets Technology

Buy AND Build: The Future of Capital Markets Technology London examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

The DORA Implementation Playbook: A Practitioner’s Guide to Demonstrating Resilience Beyond the Deadline

The Digital Operational Resilience Act (DORA) has fundamentally reshaped the European Union’s financial regulatory landscape, with its full application beginning on January 17, 2025. This regulation goes beyond traditional risk management, explicitly acknowledging that digital incidents can threaten the stability of the entire financial system. As the deadline has passed, the focus is now shifting...