Here Comes The LEI Flood
Legal entity identifier (LEI) news appeared to reach a fever pitch this month, and that's reflected in this month's issue. This surge was not exactly a complete surprise, as it revolves around the run-up to the Financial Stability Board (FSB) making its recommendations on the LEI to the G-20 in preparation for a decision expected to come out of the organization's summit in Mexico on June 18–19.
There were a few unexpected developments, however, as the International Organization for Standardization (ISO) removed Swift from its role as registration authority, at the FSB's request, and Swift and the DTCC postponed the launch of their provisional LEI portal because of complications with the CFTC's interim identifier.
Also, there have been some whispers in the industry about how the LEI will be administered and by whom. Those thoughts haven't been stated formally by those making the LEI decisions or trying to influence them, but a Sifma official said his organization is waiting to see what the FSB will do. Too much may be read into that stance, but it's less than a full-fledged confirmation of the industry's favorites, as backed by the GFMA and Sifma itself: ISO, Swift and ANNA.
Another industry association, ISITC, is getting into the LEI mix with its Regulatory Working Group turning its attention there. And LEI is prominent in the current thinking and concerns of many in the industry, as was made evident in Inside Reference Data's recent webcast on regulation and standards. Panelists in that discussion see significant challenges in complying with an LEI standard.
Tim Lind of Thomson Reuters points to a need to harmonize the various LEI plans proposed by different bodies, such as the aforementioned CFTC interim identifier (CICI), ID numbers for Fatca, tax IDs and large trader identification plans. The panelists also found other issues feeding into the LEI debate, such as addressing inaccurate or missing data and combining LEI projects with business requirement work.
The current LEI drive, which appears very close to completion—and meeting the FSB imperative for March 2013 implementation—may well be nearing its decisive moments that will lock it in as a reality for the industry. It's only a hunch, but Inside Reference Data expects to see just as much or more news about LEI in the coming month.
With the LEI sucking up so much oxygen, one might think there is nothing else of importance being discussed in the data realm, but that would be wrong. The June issue of Inside Reference Data also covers enterprise data management (EDM) developments and trends, starting with a greater push behind the Financial Industry Business Ontology (FIBO), and the increased role data management is playing in risk management. These stories were on the minds of presenters at our North American Financial Information Summit (NAFIS) last month. If you missed the event, these pieces should give you a read on how risk may dictate what data projects progress. Risk applications are requiring data models that break down or bypass silos, with proper controls now in place to make that safe. And the LEI won't be the only data relevant to using EDM to support risk management.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Big questions linger as DORA compliance approaches
The major EU regulation will go live tomorrow. Outstanding clarifications and confusion around the definition of an ICT service, penetration testing, subcontracting, and more remain.
Insurance: The role of risktech in effectively managing emerging risks and driving competitive edge
This whitepaper covers the global survey, conducted by Chartis Research and TCS, of banking, financial services and insurance firms, which found that insurers are struggling to adapt to evolving risks and regulatory requirement increases. Chartis offers…
FX automation key to post-T+1 success, say custodians
Custody banks saw uptick in demand for automated FX execution to tackle T+1 challenges.
Observations and lessons to learn from the move to T+1
The next few years will see other jurisdictions around the world look to North America for guidance on transitioning to shorter settlement cycles.
Expanded oversight for tech or a rollback? 2025 set to be big for regulators
From GenAI oversight to DORA and the CAT to off-channel communication, the last 12 months set the stage for larger regulatory conversations in 2025.
DORA flood pitches banks against vendors
Firms ask vendors for late addendums sometimes unrelated to resiliency, requiring renegotiation
In 2025, keep reference data weird
The SEC, ESMA, CFTC and other acronyms provided the drama in reference data this year, including in crypto.
Waters Wavelength Ep. 299: ACA Group’s Carlo di Florio
Carlo di Florio joins the podcast to discuss regulations.