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: Managing Off-Channel Communications Compliance

Managing off-channel communications – business interactions occurring outside of approved corporate systems – continues to challenge firms’ compliance efforts. The rise of personal messaging apps, social media, and other unmonitored channels – for example, messaging functionality embedded in an order management system – exposes firms to substantial regulatory risk. Enforcement actions by regulatory bodies, such...

BLOG

Agentic AI Deployment Presents Potentially Dangerous Data ‘Trust Paradox’

Artificial intelligence deployment in capital markets’ data processes may be approaching an inflection point that, if not managed properly, could introduce dangerous risks to institutions’ operations. The growing deployment of anonymous agents has the potential to hardwire data errors into workflows, magnifying data weaknesses as the automating technology scales processes, according Informatica from Salesforce. The...

EVENT

Eagle Alpha Alternative Data Conference, Fall, New York, hosted by A-Team Group

Now in its 8th year, the Eagle Alpha Alternative Data Conference managed by A-Team Group, is the premier content forum and networking event for investment firms and hedge funds.

GUIDE

Evaluated Pricing

Valuations and pricing teams are facing a much higher degree of scrutiny from both the regulatory community and the investor community in the glare of the post-crisis data transparency spotlight. Fair value price transparency requirements and the gradual move towards a more harmonised accounting standards environment is set within the context of the whole debate...