The board of the Global Legal Entity Identifier Foundation (GLEIF), established by the Financial Stability Board (FSB), has held its first meeting, marking a first step in the creation of a global LEI system, officials say.
The FSB, created by G7 and G20 finance ministers and central bank governors, is meant to coordinate the work of national financial authorities and international standard-setting bodies at the international level.
GLEIF officials say the inaugural meeting, held in Zurich, Switzerland last week, a “critical step” toward creating a Global LEI System to uniquely identify parties to financial transactions, in the public interest, and minus licensing, intellectual property or similar restrictions.
Almost 300,000 LEIs have been issued, according to GLEIF, which also notes that the LEI, a 20-digit, alphanumeric code, has been mandated by the CFTC, the European Securities and Markets Authority, and the European Banking Authority, and is being considered for use by other financial regulators around the world.
The purpose of the Basle, Switzerland-based, not-for-profit foundation, GLEIF says, is to “contribute to and facilitate many financial stability objectives, including: improved risk management, better assessment of micro- and macro-prudential risks, facilitation of orderly resolution, transparency into market abuse, curbing financial fraud, and higher overall quality and accuracy of financial data” used for over-the-counter (OTC) derivatives and other financial instruments.
“The global LEI system is building momentum,” says Matthew Reed, chief counsel of the office of financial research and chair of the regulatory oversight committee for the global LEI system. “The foundation will be the heart of the LEI system, building its technology infrastructure and ensuring adherence to governing principles and standards, including reliability, quality, and uniqueness.”
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