WFIC: LEI is Data Management Game-Changer, Say Practitioners

The majority of financial information professionals suggest the legal entity identifier (LEI) will be a positive global game-changer, according to an audience poll at the World Financial Information Conference in San Francisco in October.
Panelists agreed with other conference-goers, saying the reason there is a need to change the game in terms of legal entity data management is obvious. "The retail industry would not have been what it is today without the barcode. That's how the game changes," said Francis Gross, head of the external statistics division, in the directorate for general statistics, European Central Bank. He added that the industry is in for a learning process – "but we will get there."
Julia Sutton, global head, customer accounts operations, Royal Bank of Canada, said: "The LEI will be a dumb number. It will have core pieces of information added to it in the first phase, and it is something we need."
According to speakers, the new, unique identifier is a big step forward in terms of risk management. It will also improve firms' ability to rely on automation, and the introduction phase will allow them to further improve data management processes.
In fact, the clear benefits of the LEI mean there is little disagreement in the industry on the topic. It is only when speaking to professionals outside the data community that there can be opposing views, but mainly because of lack of awareness, said speakers.
The next step now is to ensure regulators get involved. Panelists said the global regulatory community needs to come on board, and called for market participants to discuss the LEI with local regulators, and ask them to adopt it in their rulemaking. "It has to be regulated. There are so many benefits, so it makes no sense not to do it," said Sutton.
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
Experts say HKEX’s plan for T+1 in 2025 is ‘sensible’
The exchange will continue providing core post-trade processing through CCASS but will engage with market participants on the service’s future as HKEX rolls out new OCP features.
No, no, no, and no: Overnight trading fails in SIP votes
The CTA and UTP operating committees voted yesterday on proposals from US exchanges to expand their trading hours and could not reach unanimous consensus.
Big xyt exploring bid to provide EU equities CT
So far, only one group, a consortium of the major European exchanges, has formally kept its hat in the ring to provide Europe’s consolidated tape for equities.
Jump Trading CIO: 24/7 trading ‘inevitable’
Execs from Jump, JP Morgan, Goldman Sachs, and the DTCC say round-the-clock trading—whether five or seven days a week—is the future, but tech and data hurdles still exist.
Pisces season: Platform providers feed UK plan for private stock market
Several companies in the US and the UK are considering participating in a UK program to build a private stock market composed of separate trading platforms.
How to navigate regional nuances that complicate T+1 in Europe
European and UK firms face unique challenges in moving to T+1 settlement, writes Broadridge’s Carl Bennett, and they will need to follow a series of steps to ensure successful adoption by 2027.
Nasdaq leads push to reform options regulatory fee
A proposed rule change would pare costs for traders, raise them for banks, and defund smaller venues.
The CAT declawed as Citadel’s case reaches end game
The SEC reduced the CAT’s capacity to collect information on investors, in a move that will have knock-on effects for its ongoing funding model case with Citadel.