About a-team Marketing Services
The knowledge platform for the financial technology industry

A-Team Insight Blogs

OFR says 500,000 LEIs are Not Enough to Achieve Expected Benefits

Subscribe to our newsletter

The Office of Financial Research (OFR) has called for collective action on global implementation of the Legal Entity Identifier (LEI) and named US regulators as the drag that is slowing down adoption of the identifier.

The OFR reviews development of the Global LEI System (GLEIS) in a briefing document titled Collective Action: Toward Solving a Vexing Problem to Build a Global Infrastructure for Financial Information and authored by Matthew Reed, former chairman of the LEI’s Regulatory Oversight Committee (ROC), and its two former vice chairmen, Bertrand Couillault of Banque de France and Jun Mizuguchi of the Financial Services Agency of Japan.

In a blog talking about the document, Richard Berner, director of the OFR, states: “During early development of the LEI system, US financial regulators articulated requirements for an LEI system, including four that were core. The LEI would need to be persistent, unique, ubiquitous and freely available. To date, the LEI system has issued about a half-million LEIs across the world, but that’s not enough progress toward the ubiquity needed to yield the full array of benefits. To accelerate adoption, regulators must require broader use of the LEI in regulatory reporting. Authorities in Europe have required it, but our fellow US regulators have been slower to respond. They need to step up and do more.”

The briefing document describes the introduction of the LEI, development of the GLEIS, establishment of the Global LEI Foundation, and the set up of Local Operating Units (LOUs) within the global system and LOU contracts designed to protect the cooperative spirit of the LEI initiative, while preventing the development of a cartel of issuers. It also notes a 98% total data quality score for LEI data in 2016, but adds: “Challenges remain. Although regulatory compulsion has led to rapid adoption and largely solved counterparty identification for our global swaps markets, the pace of adoption has slowed. Also, fewer firms than expected are renewing their codes – important both for quality control and the funding mechanism. In addition, some expected regulations that would mandate LEI adoption have not materialized. We must overcome these challenges.”

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Generative and Agentic AI in Financial Markets: What the Data Really Shows

Date: 15 October 2026 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Artificial intelligence is reshaping financial markets – but the reality on the ground is more nuanced, more uneven, and more instructive than the headlines suggest. A new A-Team Insight research programme, drawing on responses from senior AI decision-makers at...

BLOG

Waystone Positions ManCo Platform as Infrastructure for Global Fund Expansion

For asset managers expanding into new markets, launching funds across jurisdictions means navigating different supervisory expectations, different disclosure regimes, different distribution rules and different interpretations of similar underlying obligations. The operational burden is growing at the same time as managers remain under pressure to control costs, protect margins and bring products to market faster. That...

EVENT

TradingTech Summit New York

Our TradingTech Summit in New York is aimed at senior-level decision makers in trading technology, electronic execution, trading architecture and offers a day packed with insight from practitioners and from innovative suppliers happy to share their experiences in dealing with the enterprise challenges facing our marketplace.

GUIDE

AI in Capital Markets Handbook 2026

AI adoption in capital markets has moved into a more disciplined phase. The priority is now controlled deployment: where AI can be used safely, where it can deliver measurable value, and how outputs can be governed, monitored and evidenced. The 2026 edition of the AI in Capital Markets Handbook examines how AI is being applied...