The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Global LEI Foundation Weighs the Options of Operating or Outsourcing Central LEI Database

The board of the Global Legal Entity Identifier Foundation (GLEIF) met last week to discuss the master agreement that will define legal relationships between Local Operating Units (LOUs) and the foundation, governance of the foundation, and funding. It also touched on the technology requirements of the Central Operating Unit (COU) of the Global LEI System (GLEIS), but has yet to decide whether to operate or outsource the central LEI database that will be at the heart of the system.

Gerard Hartsink, chair of the GLEIF, says: “Before we can select and source technology, we need to clarify exactly what we want to create. The concept of Local Operating Units (LOUs) providing local data to a central database is simple, but should the data and any changes to it be available in real time to any user, or should the data be updated, say, every five minutes or every half an hour? Similarly, should it be possible to download the full database in, say, five seconds? We must consider the impact of these kinds of issues on LOUs and the operational arm of the federation before making any decisions.”

While technology is fundamental to the GLEIS, Hartsink notes that the migration of LOUs from the interim GLEIS to the complete system and the creation of a legal master agreement are equally important.

The board meeting agreed that the funding model for the GLEIF – detailed in July 2014 and requiring LOUs to pay $20 a year for each LEI they issue as well as a member credit fee of $10 per LEI to supplement initial operations of the foundation – is working well and will support the payment of staff needed to run the COU. Staff are expected to be hired after Interactive Data executive Stephan Wolf, who was appointed CEO of the GLEIF in July 2014, steps into the role late this month or early next month. In a similar timeframe, the GLEIF plans to open a website dedicated to practical issues involved in the GLEIS and documenting agendas and minutes of its board meetings.

Related content

WEBINAR

Recorded Webinar: The post-Brexit UK sanctions regime – how to stay safe and compliant

When the Brexit transition period came to an end on 31 December 2020, a new sanctions regime was introduced in the UK under legislation set out in the Sanctions and Anti-Money Laundering Act 2018 (aka the Sanctions Act). The regime is fundamentally different to that of the EU, requiring financial institutions to rethink their response...

BLOG

Join Next Week’s RegTech Summit Virtual to Discuss Regulation Post-Covid, the Brexit Regime and Ongoing Challenges of KYC and AML

The coronavirus pandemic has changed the way we work and it is becoming increasingly clear that the business environment will be irrevocably changed by the 2020 experience. Remote engagement has become more important than ever, and agility and versatility have become valuable characteristics in this new normal. At the same time, regulatory oversight is becoming...

EVENT

Data Management Summit Virtual

The Data Management Summit Virtual will bring together the global data management community to share lessons learned, best practice guidance and latest innovations to emerge from the recent crisis. Join us online to hear from leading data practitioners and innovators from the UK, US and Europe who will share insights into how they are pushing the boundaries with data to deliver value with flexible but resilient data driven strategies.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...