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

The OTC Derivatives Case for LEIs

Subscribe to our newsletter

Hot on the heels of the Financial Stability Board’s creation of expert panels to advise on the development of legal entity identifiers (LEI), international regulators IOSCO and the Bank for International Settlements this week weighed in to stress the importance of LEIs to the ongoing efforts to boost transparency in the OTC derivatives marketplace.

In their new ‘Report on OTC derivatives data reporting and aggregation requirements’, the BIS Committee on Payment and Settlement Systems (COPSS), which among other things outlines minimum requirements for reporting to a trade repository and acceptable data types, the trade groups describe the proposed system of LEIs as “an essential tool for aggregation of OTC derivatives data”.

So important, in fact, do COPSS/IOSCO consider the LEI that they suggest: “To promote timely development development of an LEI system suitable for international use, the (COPSS/IOSCO) Task Force recommends that the industry process include development of an LEI standard and issuance of LEIs under the auspices of an organization that develops and publishes international standards for the financial sector.”

Who can they have in mind?

Meanwhile, the Task Force recommends that derivatives trade repositories “support the establishment of the LEI system through active participation in development efforts and use of the system once it becomes established.” The Task Force further recommends that LEIs follow a set of basic principles that will allow them to support key OTC data aggregation requirements of “uniqueness, neutrality, reliability, open source and extensibility.”

Finally, the Task Force proposes that national authorities consider legislation or regulations to ensure harmonization of legal requirements for use of the LEI across different jurisdictions.

The Task Force acknowledges – as others have – the implementation challenges LEIs present. In particular, it suggests that ongoing international consultations, such as the FSB LEI workshop held in Basel last September, continue. For its part, FSB seems to have indicated that it is up for the challenge of communicating with the industry on how to bring LEI to fruition this year.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: MiFID II – How prepared are we?

With the compliance deadline for Markets in Financial Instruments Directive II (MiFID II) just over six months away on 3 January 2018, how ready are market practitioners to meet the challenges and obligations of the regulation? This webinar will identify outstanding challenges and how they can be approached, discuss how practitioners are sourcing required –...

BLOG

A-Team Group Announces Winners of its Data Management Insight Awards Europe 2025

A-Team Group has announced the winners of its Data Management Insight Awards Europe 2025, celebrating the latest outstanding contributions from companies recognised for their innovation, expertise and performance.  Now in its fourth year, these annual awards acknowledge the leading providers of data management solutions, services and consultancy services to capital markets participants across Europe. Established...

EVENT

RepRisk Sustainability Breakfast Roundtable London

The London sustainability breakfast is part of the global roundtable thought leadership event series hosted by RepRisk in key markets, including, New York, Toronto, London, Frankfurt, Oslo, Copenhagen, Stockholm, Hong Kong and Singapore in 2026.

GUIDE

GDPR Handbook

The May 25, 2018 compliance deadline of General Data Protection Regulation (GDPR) is approaching fast, requiring financial institutions to understand what personal data they hold, why they process it, and whether it is shared with other organisations. In line with individuals’ rights under the regulation, they must also provide access to individuals’ personal data and...