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

Opinion: Proven Main Street Solution Proposed for Global Financial Identification

Subscribe to our newsletter

By Allan Grody and Bob Carpenter

There is a business model in existence today that has been around for nearly four decades and that has solved the unique identification problem in the global commercial trade supply chain. Now in partnership with our respective firms, we are proposing to share this system with regulators and the financial services industry for solving the same problem in the global financial supply chain.

GS1 has uniquely, unambiguously and universally identified 1.5 million companies and 40 million products across 25 diverse global industries. The same numbers and system, already an ISO sanctioned standard that is used to identify these businesses today are proposed for use as the legal entity identifier (LEI) for the US Treasury’s Office of Financial Research, and the analogous unique counterparty identifier (UCI) for the Commodity Futures Trading Commission (CFTC) and the unique identifier code (UIC) for the Securities and Exchange Commission (SEC).

GS1 operates a federated model with member organisations in 110 countries. The federated model allows for local involvement and, where required, local regulatory oversight. However, it operates its self-registering numbering assignments from a single pool of numbers administered through a distributed data model, thus assuring global uniqueness.

The UK cabinet office’s interest in competing identity assurance services fits well with our proposal to have public auditors apply their assurance function to the LEI and its minimum data attributes. These attributes are quite basic, mainly company name, address, postal code and such. The powerful element is the uniqueness of the number and its mandated global use in reporting data to regulators.

We also see XBRL playing a role in creating templates for the LEI so that it can be “certified” at its source of origination. This is not unlike XBRL’s role in annual report submissions, one of the most successful automation efforts in global regulatory reporting. Coupled with GS1’s success with global identification, also described as one of the more successful business automation efforts ever, the long overdue journey toward resolving the reference data identification issue will be well on its way.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Best approaches for trade and transaction reporting

Compliance practitioners and technology leaders in capital markets face mounting pressure to ensure that reporting processes are efficient, accurate, and aligned with global standards. Market developments and jurisdictional nuances in regulatory frameworks like MiFID II, EMIR, SFTR and MAS create a continual challenge for compliance teams. This webinar brings together senior RegTech executives and seasoned...

BLOG

FSB Guidance for Supervisors – Tracking Systemic AI Adoption Risk

The Financial Stability Board (FSB) has released detailed guidance on how regulators and supervisors should monitor the adoption of artificial intelligence (AI) across the financial system. The report, Monitoring Adoption of Artificial Intelligence and Related Vulnerabilities in the Financial Sector, provides a practical framework for identifying where AI use may introduce or amplify systemic risks....

EVENT

TradingTech Summit New York

Our TradingTech Briefing 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

The DORA Implementation Playbook: A Practitioner’s Guide to Demonstrating Resilience Beyond the Deadline

The Digital Operational Resilience Act (DORA) has fundamentally reshaped the European Union’s financial regulatory landscape, with its full application beginning on January 17, 2025. This regulation goes beyond traditional risk management, explicitly acknowledging that digital incidents can threaten the stability of the entire financial system. As the deadline has passed, the focus is now shifting...