April 2017

Updates on developments surrounding implementation of the Global Legal Entity Identifier System

IN THE SPOTLIGHT

April 19 – GFMA to Hold Webinar on LEI Level II Implementation
On April 19, GFMA will host the next webinar of its ongoing series on the Global LEI System. This complimentary Webinar will focus on new Regulatory Oversight Committee (ROC) guidelines under which Local Operation Units (LOUs) will start collecting data on the direct and ultimate parents of legal entities, beginning on May 1, 2017. Speakers will include key leaders from the LEI ROC and the Global LEI Foundation (GLEIF), as well as from LOUs.
Learn More and Register

April 27 – GFMA and Thomson Reuters to Host First Asia-Based LEI Webinar
On April 27, GFMA will partner with Thomson Reuters to bring its LEI Webinar series to Asia. This complimentary Webinar will offer participants an introduction to the Global LEI System and its benefits, the process for obtaining an LEI, and an overview of the upcoming LEI requirements in MiFID II that will significantly impact Asian counterparties.
Learn More and Register

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GLOBAL LEI FOUNDATION NEWS

April 6 – GLEIF Publishes Reminder of MiFID II/MiFIR Reporting Requirements; Invites Firms to Become ‘Registration Agents’
The GLEIF calls on market participants that will have to comply with the forthcoming European Union (EU) revised MiFID II/MiFIR to obtain a Legal Entity Identifier (LEI) as soon as possible. Failure to obtain an LEI (by the firm or its client) in time will prevent firms from being able to comply with the reporting requirements applicable in the EU as of January 3, 2018. To further streamline the issuance of LEIs, GLEIF has introduced the concept of the ‘Registration Agent.’ A Registration Agent helps legal entities to access the network of LEI issuing organizations responsible for performing LEI issuance and related services.
Reminder | Learn More About Registration Agents

April 5 – GLEIF Releases March 2017 LEI Data Quality Report
GLEIF has published its latest report on data quality in the Global LEI System, based on an assessment run on March 31, 2017 showing that the Total Data Quality Score remains at 98%. The report includes monthly reports analyzing the level of data quality achieved by individual LEI issuers, and shows that the same five issuers have achieved the highest level of data quality for the past four months.
March 2017 Data Quality Report

March 2 – GLEIF Blog Post on LEI Renewal Rates
GLEIF CEO Stephan Wolf has written a blog post on the importance of LEI renewal. The post considers the impact on users of the LEI data and possible means to encourage regular renewal of the LEI reference data by all registered entities. The post also stresses that GLEIF, as well as the LEI issuing organizations, can only remind legal entities that have obtained an LEI to comply with their contractual obligations and invite these to also recognize the reputational value of maintaining an LEI in good standing.
Blog Post

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REGULATORY UPDATE

March 31 – ESMA Publishes Final Report on Technical Standards for SFTR
The European Securities and Markets Authority (ESMA) has issued a final report on standards implementing the Securities Financing Transaction Regulation (SFTR), which aims to increase the transparency of securities financing transactions (SFTs). The standards include provisions on the collection and availability of standardized identifiers, including LEIs, to improve data quality and aggregation across trade repositories. ESMA highlighted that Article 4(10) of SFTR mandates the use of LEIs, and so the counterparties to an SFT must have an LEI.
Press Release

March 28 - Benoît Cœuré: Setting Standards for Granular Data
Benoît Cœuré, Member of the Executive Board of the European Central Bank, delivered a speech on March 28 in Frankfurt on the need for high-quality granular data for both regulatory authorities and industry. Cœuré said the benefits of the LEI system for financial stability broadly are clear, and that the industry also stands to benefit as LEIs help banks to manage risk, identify their customers, and counter money laundering and terror financings. He argued that it is important that authorities sponsor a more widespread adoption of LEIs and suggested that regulators in other jurisdictions should consider mandatory adoption in their rulemakings.
Speech

March 16 – LEI ROC Drafting Two Consultation Reports Expected to be Published in April
The LEI ROC is currently consulting its Private Sector Preparatory Group (PSPG), along with the GLEIF, LOUs and the public sector, on two draft consultation reports expected to be published in April 2017: the first one is about recording in the Global LEI System relationships investment funds have with other entities (such as a fund management entity, an umbrella fund, a master fund), and the second one is about improving the way some corporate actions that impact LEI reference data and data history are recorded in the Global LEI System.
LEI ROC Latest Updates

March 16 – Richard Berner: Reducing the Regulatory Reporting Burden
Richard Berner, Director of the Office of Financial Research, delivered a speech on March 16 in Washington, DC in which he praised the Global LEI System and called on all U.S. federal financial regulators to mandate LEIs in regulatory reporting. He was critical of regulators who have been “unfortunately lagging behind their counterparts overseas.”
Speech

February 28 – CPMI-IOSCO Issue Guidance on Harmonization of the UTI
A new report provides technical guidance to authorities to enable them to set rules on assigning uniform global Unique Transaction Identifiers (UTIs) to over-the-counter (OTC) derivatives transactions. The report, entitled “Harmonisation of the Unique Transaction Identifier,” is a joint effort of the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO). Under the guidance, new UTIs should be structured as a concatenated combination of the LEI of the generating entity at the point of generation and a unique value created by that entity.
Press Release

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LEI IN THE NEWS

February 14 – FOW: Capital and Money Markets Next Focus for GLEIF - CEO
Luke Jeffs of Futures and Options World writes that GLEIF CEO Stephan Wolf sees capital markets and money markets firms as the next extension of the LEI regime. According to Wolf, this added scope would bring an additional one million firms from Europe and North American alone into the LEI system over the next four years.
Article

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LEI IMPLEMENTATION TIMELINE


Source: JPMORGAN Chase

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lei by the numbers

Endorsed LOUs – 30
Countries with LOUs – 29
Jurisdictions with LEIs – 200
LEI Registered Entities – >502,000

LEIs By Country

Source: Global LEI Foundation

LEIs By Issuer

Source: Global LEI Foundation

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USEFUL LINKS

GFMA's LEI Page
LEI Regulatory Oversight Committee
Global LEI Foundation
List of Existing and Proposed Rulemakings Using LEIs
LEI Issuing Organizations
LEI Statistics

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upcoming events

New York Outreach of the Singapore FinTech Festival, April 18 at SIFMA’s Conference Center, NYC
The New York outreach of the Singapore FinTech Festival, hosted by the Monetary Authority of Singapore and SIFMA, will bring fresh insights into recent developments taking place in the Singapore FinTech ecosystem – including a look at the future of finance and the role of technology. We invite you to join us and hear from the Monetary Authority of Singapore's (MAS) Managing Director, Mr. Ravi Menon, and Chief FinTech Officer, Mr. Sopnendu Mohanty, as they share perspectives on the opportunities of FinTech. A Q&A session with MAS and SIFMA will follow. Attendance is complimentary.
Register Today

Next Week on April 20: Canada-US Securities Summit in NYC – Attendance is Complimentary
Join co-hosts, SIFMA and the Investment Industry Association of Canada (IIAC), at the 5th annual Canada-U.S. Securities Summit on April 20 in New York City. This half-day event features experts from Canada and the United States providing insights into key economic, regulatory and political issues in the North American capital markets. The summit will include perspectives on the agenda of the new U.S. administration - and its potential implications for the long-held ties between the two nations - as well as topics on Cross Border Trade, Canadian Energy Sector, Equity Marketplaces, and more.
Reserve your seat today

AFME's 10th Annual European Post-Trade Conference will take place on 18 May at The Berkeley in London
The event will hear from renowned industry expert, Ugo Bassi, director of financial markets in the European Commission's DG FISMA, on the European financial regulatory landscape. In a series of keynote presentations and panel debates – including a keynote by Michael Mainelli, Co-Founder & Director of Z/Yen Group (the City of London’s leading think-tank), who will discuss distributed ledger technology in post-trade and settlements – leaders on post-trade will share their views on regulatory changes and reporting requirements, the influence on post-trade of Brexit and the rise of digitalisation in post-trade.
Register Today

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