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

A-Team Insight Blogs

S&P Capital IQ Builds Out Cross-Referencing Capabilities to Cover Entity Identifiers

S&P Capital IQ is addressing the need to cross reference emerging legal entity identifiers (LEIs) in a broad cross-referencing service covering over two million public and private entities that use standard and proprietary identifiers. The service is called the Business Entity Cross Reference Service and is designed to help users identify systemic and counterparty risk, while easing the burden and cost of tracking legal entity structures in house.

The service builds out S&P Capital IQ’s cross-referencing services, adding an entity layer to the typical three-tier reference data model covering issuers, issues and securities. The Business Entity Cross Reference Service can map securities to one ultimate parent entity, helping users to meet regulations such as Dodd-Frank, Basle III and Solvency II that require a greater understanding of concentration risk and risk exposure. It also cross references different identifiers used by market data vendors to identify the same entity. Roger Fahy, vice president at S&P Capital IQ, explains: “Firms that manage different sources of information need to understand and maintain, on a daily basis, the linkages between instruments, entities, issuers, securities and sector classifications for better geographical and counterparty exposure reporting. This is what our solution provides.”

The Business Entity Cross Reference Service supports LEIs that are part of the global LEI system mandated by the G20 in 2011 and developed under the auspices of the Financial Stability Board. Rui Carvalho, managing director at S&P Capital IQ, says: “We have added the LEI to the service as another identifier and we are adding individual LEI codes as they are issued. The first official LEIs are the CFTC Interim Compliant Identifiers, or CICIs, and they are included in the initial service. The next release will include German LEIs issued by WM Datenservice. As other jurisdictions  go live and issue LEIs locally we will also capture them and map them to other standard and proprietary identifiers.”

The service is available as a subscription option on S&P Capital IQ’s Xpressfeed delivery platform, a turnkey database designed for efficient data delivery and management, and is production ready. Carvalho says: “We ran a beta programme for the Business Entity Cross Reference Service with a group of clients. Over a dozen are already paying to use the service and we have a pipeline of a further 30 to 50 clients. Typical early adopters are those with the greatest exposure to risk as their portfolios are very large, but ultimately we also expect small and medium capital markets participants, as well as regulators, to need a solution for entity cross referencing.”

Related content

WEBINAR

Recorded Webinar: Best practice for Regulatory Change in 2021 and beyond

How to get regulatory change management right and avoid the risks of getting it wrong The burden of regulatory change on financial firms has never been greater, leaving compliance teams under increasing pressure to ensure that changes are reviewed and acted upon in a timely manner. Technology enhancements in this space can help, allowing firms...

BLOG

Trustworthy AI in Capital Markets

By Shameek Kundu, head of Financial Services at TruEra. The use of Artificial Intelligence (AI) is growing in capital markets. But the sector has work to do to capitalise on investment made, and this starts with making AI and machine learning (ML) models robust, transparent and fully accountable. Ensuring AI quality will be critical to...

EVENT

Data Management Summit Boston (Redirected)

As investment management firms take on more responsibility and control over core operational functions, A-Team has seen demand for a more buy-side oriented event focused on data and data management. The inaugural DMS Boston will take place in June 2020, and will focus on topics of interest to buy-side practitioners.

GUIDE

ESG Handbook 2021

A-Team Group’s ESG Handbook 2021 is a ‘must read’ for all capital markets participants, data vendors and solutions providers involved in Environmental, Social and Governance (ESG) investing and product development. It includes extensive coverage of all elements of ESG, from an initial definition and why ESG is important, to existing and emerging regulations, data challenges...