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: https://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
Can Canada follow in the US’s footsteps in overnight trading?
Canadian marketplaces and trading venues are in a race to see who can first authorize overnight equities trading, but not everyone is convinced of its value.
Will SEC reporting proposal supercharge alt data providers?
An SEC proposal that would let companies opt out of quarterly reporting disclosures could be a boon for alternative data providers.
Paxos wins temporary approval for blockchain clearing push
Blockchain infrastructure company will have a period of 18 months to “ramp up” readiness for operations, per the SEC’s approval letter.
Is a 2027 T+1 move too soon for Hong Kong?
The Waters Wrap: Wei-Shen examines HKEx’s discussion paper on moving to T+1 in Q4 2027. A move so soon has its benefits but still requires careful consideration, she says.
EU AI Act leaves agents in regulatory limbo
A new paper published by AI ethicists draws attention to a hole in the EU AI Act surrounding high-risk agentic systems.
AI governance rules coming soon, says CFTC chair
Selig doesn’t want to stifle innovation, but says trading or advice algos will need guardrails.
Hitting the Great Wall: Details scarce on China’s Xinchuang initiative
In a quest to learn more about China’s Xinchuang initiative, Wei-Shen finds trying to get information feels like running into a wall over and over again.
24X says requested SIP exemption won’t break the market
In a new letter to the SEC, the startup exchange says data infrastructure that operates like the SIP is available as it looks to launch overnight trading this summer.