Golden Copy: Identification and Verification
Legal entity identifier backers turn their focus to quality, but volume is still an issue
This week, Richard Berner, director of the Office of Financial Research (OFR), the unit of the US Treasury that promotes adoption of standards in the financial industry, including the legal entity identifier (LEI), made a statement that the LEI is an example of how public-private cooperation produces better standards.
To that end, the Global Legal Entity Identifier Foundation (GLEIF), the body that administers LEIs worldwide, has just launched a data challenge facility that lets interested parties verify, and, when needed, update LEI records and their related reference data.
GLEIF's action shows it is listening to the methods Berner and his colleagues at the OFR are advocating, or at least using these methods of its own volition. Although the OFR has been supportive of GLEIF's efforts, with its chief counsel serving as GLEIF's first chairman, and continued participation in GLEIF's executive committee, a paper by Berner's colleague, Cornelius Crowley, chief data officer at OFR, notes that LEI adoption is still uneven, more so in markets where the LEI is not required.
For instance, from the total of 451,850 LEIs registered as of July 15, about 130,000 are from the US and Canada, about 154,000 collectively from the UK, France, Germany, Italy and Sweden; and about 12,000 collectively from Japan, Australia and Singapore. The other 155,000 or so LEIs are spread out worldwide in pockets of double- or even single-digit numbers in numerous countries, some countries with 100 to 300 each, and a few others with several hundred each, namely the BRIC countries (Brazil, Russia, India and China).
Crowley writes that the quality of existing LEI data is high, so while a data challenge facility designed to raise the quality of LEI data can't hurt, the GLEIF's cause might be better served by promoting more registrations, to exponentially raise the numbers across the board, whether that's in highly developed markets with multiple thousands of registrations, or small markets with just hundreds or less.
GLEIF's verification effort can have value, however, if it succeeds in addressing a gap, pointed out by consultant Allan Grody of Financial InterGroup, between the registered LEIs and LEIs that have actually been validated, which are only about 70% of the registrations, depending on the market.
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 Trading Tech
WatersTechnology latest edition
Check out our latest edition, plus more than 10 years of our best content.
Getting aggressive: Overbond uses AI to assess dealer axes
The fixed-income analytics specialist has developed a new tool to help buy-side firms decide if they’re getting a good price from their dealers.
TS Imagine integrates LTX’s pre-trade analytics tool
Users of the fixed-income EMS will now have access to LTX’s Liquidity Cloud tool, which provides a pre-trade score for the likelihood of trading success.
European exchanges turn to dark trading in battle for flow
The EU’s two biggest exchanges are launching dark pools this year. The apparent change in their stances on dark trading reflects a profound shift in equities markets.
After contentious Opra upgrades, vendors brace for a faster future
Upgrades to the datafeed widely used to gauge the current market price for options contracts went into effect in February after three separate delays, which market participants say were caused by persistent bandwidth issues at some important recipients.
The IMD Wrap: No more turf wars, or why CDOs should heed the Voice of the CTO
Max reviews how our recent Voice of the CTO series has implications for those beyond a firm’s technology function, and how communication and collaboration between tech, data, and leadership will deliver better results.
Dark horse: Deutsche Börse building dark pool
New functionality allowing exchange members to execute sweep trades comes hot on the heels of European rival Euronext launching its own dark pool.
Waters Wrap: The tough climb for startups
Anthony speaks with two seasoned technologists to better understand why startups have such a tough time getting banks and asset managers to sign on the dotted line.
Most read
- Women in Technology & Data Awards 2024: All the winners and why they won
- Witad Awards 2024: Above and beyond award (vendor)—Susan Bennett, Tradeweb
- Fighting FAIRR: Inside the bill aiming to keep AI and algos honest