Instability Board
![michael-shashoua-waters michael-shashoua-waters](/sites/default/files/styles/landscape_750_463/public/import/IMG/317/167317/michael-shashoua-waters.JPG.webp?h=acfe3244&itok=ceJMABf4)
Discussion of the International Organization for Standardization's (ISO) removal of Swift's registration authority role for the legal entity identifier (LEI) at the behest of the Financial Stability Board (FSB) continues to echo comments made in this space two weeks ago. Now, the question is whether this event will create a divide that could defeat the purpose of setting an LEI standard to begin with.
The FSB wanted to avoid a conflict with Swift over how to govern the LEI, but the end result of the dismissal of Swift is more likely to be that both ISO and Swift will be administering the standard with less communication or coordination between them. Swift, as mentioned before, out of practicality, will continue to be involved in handling identifiers.
So who will really have overall authority to standardize LEIs? The financial industry had recommended a combination of ISO, Swift, DTCC and Anna, but can that hold together with a new complication in all these bodies working together?
So the FSB, having set this chain of events into motion, ought to bear some responsibility for answering these questions that the industry undoubtedly will have. As of this writing, the FSB plans to present recommendations on how to implement the LEI to the G-20 nations in June. The FSB also was due to present a report signaling what these recommendations might be in advance of the G-20 gathering in Mexico. If the FSB is in fact rejecting the idea that the aforementioned associations and entities can work together on the LEI, it ought to show a rationale for that and present some details on how these authorities could implement the LEI standard.
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.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
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. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Finra clears hurdle with CAT launch, but several others remain
Two major components of the consolidated audit trail are now in place. But wrangling over the CAT’s future continues.
Bloomberg, industry bodies push back on Cboe’s proposed OEMS rule change
Some industry bodies disagree with the options exchange’s proposal to carve its Silexx OEMS out of the SEC’s definition of an exchange facility and place it into a separate business line.
GenAI: US Fed reveals its five use cases
Internal sandbox used to assess viability and risks; coding and content generation on the agenda.
Zeros and ones: Industry contemplates T+0 as the next step
With the North American transition to T+1 settlement complete, same-day settlement could be the next goalpost set, though skeptics are many.
The IMD Wrap: Déjà vu as exchange data industry weighs its options
Max highlights some of WatersTechnology’s recent reporting on data costs and capacity issues facing the options industry, and asks, haven’t we seen this before somewhere?
FRTB data quality issues persist amid shifting implementation dates
Banks are finding market and reference data challenges posed by the FRTB’s standardized model tricky, compounded by uncertainty over when the regulation will take effect.
Cboe pushes rule change to make way for proprietary Opra alternatives
As US options data has grown in volume and cost, Cboe says changing the public feed's governing document would make way for more competition from private alternatives, including its Cboe One Options Feed, launched in 2023.
Regulators urged to promote cyber security investment
Public interest in stopping cyber attacks that could trigger bank runs, says Bundesbank researcher