GoldenSource has enabled its enterprise data management (EDM) software to support legal entity identifiers (LEIs), but notes that early users are seeking point solutions to address tax requirements including the LEI rather than addressing the LEI as a means of gaining a consistent and accurate view of clients and counterparties that can improve onboarding and risk management, and reduce operational cost.
This wider approach is expected to follow as more LEIs are issued and regulation requiring the use of the identifiers, such as the European Market Infrastructure Regulation (EMIR), comes into play.
The company has been working on the adoption of the LEI for some time as most of its clients will need to incorporate it in their reporting. The result is an extension to the GoldenSource EDM software that allows users to add LEI codes to the platform as additional codes or select to use them as primary entity identifiers.
The EDM software development is coupled to GoldenSource’s Connections managed service that has been extended to include LEI-related information from data vendors and will be continually updated. The company suggests financial institutions that link LEI information with its Vendor Data Source Hierarchy will be able to achieve a consolidated entity master and easier issuer matching.
Devendra Bhudia, vice president of product management at GoldenSource, explains: “We manage the interface between data vendors and data users. We normalise data feeds coming in, scrub the data and produce golden copies. The LEI is matched to a client’s internal data and when LEI data hierarchies are decided we will match them to internal data too. It is then possible to visualise data and look at credit, market and counterparty risk from an LEI perspective.”
Bhudia notes that a number of GoldenSource clients have started to implement the LEI, but says early adopters are using the LEI for tactical purposes of fulfilling tax laws ahead of implementing the LEI as a means of improving data management. He hopes the company’s approach to the LEI will attract both existing and new customers, particularly those with multiple data silos seeking to implement the LEI and at the same time consolidate data management. As well as providing LEI-enabled EDM as an enterprise solution, GoldenSource has also extended its cloud-based managed EDM service to accommodate the LEI. No takers so far, but the solution is ready to go.
Mike Meriton, CEO at GoldenSource, concludes: “There is a vast amount of new regulation in the pipeline. Underpinning compliance is ensuring that data is managed correctly. We offer both a holistic view of data across the enterprise as well as out-of-the-box LEI readiness. We feel this is of enormous value to our clients in the midst of challenging regulatory times.”