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

A-Team Insight Blogs

OFR Runs Challenge Series to Solve Problem of Matching Entity Identifiers

The Office of Financial Research (OFR) is running a series of challenges designed to develop automated technologies that could solve the problem of matching entity identifiers from different sources and, in particular, make it easier to link entity identifiers from diverse sources to the Legal Entity Identifier (LEI). Results of the first challenge will be revealed at an industry conference for database developers and users in San Francisco on 1st July.

The OFR, which was established under Dodd-Frank regulation in response to the 2008 financial crisis and has a mission to promote financial stability by delivering high quality financial data, standards and analysis for the Financial Stability Oversight Council and the public, worked with the National Institute of Standards and Technology to set the first challenge, Financial Entity Identification and Information Integration, earlier this year.

The challenge attracted eight teams of participants from IBM Research, FactSet Research Systems, Thomson Reuters, Tahoe Blue, Hasso Plattner Institut, ISMB & EURECOM, Pennsylvania State University and University of Texas. The teams began the challenge with the same financial entity identifiers from three datasets – Research, Statistics, Supervision and Discount (RSSD) codes that banks use in filing regulatory reports to the Federal Financial Institutions Examination Council (FFIEC), Central Index Key (CIK) codes and LEI codes. They were given three assignments: matching the RSSD identifiers to the LEI codes, matching FFIEC entities with CIK codes, and aligning entities across the three datasets.

The OFR says early results are promising with most teams correctly aligning the codes, but notes that this is only the beginning of the challenge series that it hopes will include more and different participants including banks struggling to match identifiers from multiple sources and implement the LEI.

Commenting on the disclosure of the results from the first challenge on 1st July, Mark Flood, an OFR research principal and one of the challenge’s organisers, says: “We will have an open discussion about what worked and what didn’t work. The point is not to have a ribbon pinning ceremony for a winner. It is to have a conversation. We are trying to foster a research community around this issue.”

The research community is expected to emerge from further challenges over the next couple of years and will consider how to develop automated solutions that will deliver precision in linking entity identifiers. Organisations interested in joining the research community should contact Mark Flood at Mark.flood@ofr.treasury.gov.

Related content

WEBINAR

Recorded Webinar: How to run effective client onboarding and KYC processes

Increasing cost, complexity and regulatory change continue to challenge firms implementing client onboarding and Know Your Customer (KYC) systems. With an effective strategy and a clearly defined pathway, it’s possible to gain a valuable competitive advantage whilst meeting those all-important compliance requirements. But how to get there? With a myriad of different options out there...

BLOG

UK Sanctions Regime Increases Complexity and Cost of Compliance

The post-Brexit UK sanctions regime has added complexity to compliance, changes in financial institutions’ appetite for risk, and increased costs for multinational firms that must comply with both EU and UK sanctions regulation. These issues and more will be addressed at next week’s A-Team Group webinar on The post-Brexit UK sanctions regime – how to...

EVENT

RegTech Summit London

Now in its 5th year, the RegTech Summit in London explores how the European financial services industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

RegTech Suppliers Guide 2020/2021

Welcome to the second edition of A-Team Group’s RegTech Suppliers Guide, an essential aid for financial institutions sourcing innovative solutions to improve their regulatory response, and a showcase for encumbent and new RegTech vendors with offerings designed to match market demand. Available free of charge and based on an industry-wide survey, the guide provides a...