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

Talking Reference Data with Andrew Delaney: Summer of LEI

Subscribe to our newsletter

Summer – such as it exists here in London – is typically characterised by a slowdown in activity in our marketplace. But we are bracing ourselves for a busy season as the world ponders just how the legal entity identifier (LEI) will look – and how to deal with it once it emerges.

The pace of pronouncements – from the Financial Stability Board (FSB), from Sifma and just last week from Cusip and the national numbering associations – shows no sign of abating. The smart money seems to be shifting weekly, from the DTCC/Sifma ‘centralised’ solution, to the FSB’s ‘decentralised’ solution and on to Cusip’s suggestion of a ‘hybrid centralised/decentralised’ solution.

Whatever next?

We have been watching these developments – and the concurrent discussion of whether the LEI should be a random number or should contain some intelligence to make it more useful and manageable – with keen interest. It’s high time, we concluded, that we published a special report on the topic.

And it will become so.

We are in the process of pulling together expert opinion from the marketplace for a special report we’ll publish in September. Our planned report – What the Global Legal Entity Identifier (LEI) Will Mean for Your Firm – will hopefully do what it says on the tin. We’ll be running a webinar/webcast soon after publication as well, to present the key findings and host a broader, live discussion of the topics raised in the report. And if the market calls for it, we’ll think about doing a seminar on the subject.

As you know, expectations for the LEI are high. The industry initiative to develop and promote a standard global legal entity identifier (LEI) is aimed at significantly reducing the opacity associated with complex financial instruments. The lack of clarity around the issuing entities of certain risky securities was widely acknowledged to be a major contributing factor in the 2008 credit crisis.

Practitioners have welcomed the development of the LEI in terms of reduced risk and elimination of duplication of effort across the industry. But many acknowledge that adopting the new identifier will bring a new set of challenges as firms seek to strike a balance between their internal processes and the use of external suppliers’ services.

Our industry briefing will look at the implications of the emerging LEI for financial institutions as they address how to implement the new standard, and offer suggestions on best practices as the LEI becomes available.

If you’re interested in getting involved, get in touch.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: How to ensure employees meet fit and proper requirements under global accountability regimes

Fitness and proprietary requirements for employees of financial institutions are not an option, but a regulatory obligation that calls on employers to regularly assess employees’ honesty, integrity and reputation, competence and capability, and financial soundness. In the UK, these requirements are a core element of the Senior Managers and Certification Regime (SMCR). They are also...

BLOG

Data Quality Still Troubling Private Market Investors: Webinar Review

Obtaining and managing data remains a sticking point for investors in private and alternative assets as financial institutions sink more of their capital into the markets. In a poll of viewers during a recent A-Team LIVE Data Management Insight webinar, respondents said the single-biggest challenge to managing private markets data was a lack of transparency...

EVENT

RegTech Summit New York

Now in its 9th year, the RegTech Summit in New York will bring together the RegTech ecosystem to explore how the North American capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Enterprise Data Management

The current financial crisis has highlighted that financial institutions do not have a sufficient handle on their data and has prompted many of these institutions to re-evaluate their approaches to data management. Moreover, the increased regulatory scrutiny of the financial services community during the past year has meant that data management has become a key...