DOCSLIB.ORG

XML Interface for NEFT Messages

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
XML Interface for NEFT Messages XML Interface for NEFT messages By: Akanksha Gupta Under the guidance of Shri. G. Raghuraj 6/28/2012 1 CERTIFICATE This is to certify that Ms. Akanksha Gupta, pursuing B. Tech course at Indian Institute of Technology, Guwahati with . as major subject has undertaken a project as an intern at the Institute for Development and Research in Banking Technology (IDRBT) , Hyderabad from April 30 to June 29, 2012. She was assigned the project “ Creation of XML Format for NEFT Messages” under the guidance of the SFMS (Structured Financial Messaging System) Department of IDRBT . During the course of the project she has undertaken a study of the payment system. In this project assigned to Ms. Akanksha Gupta she has done excellent work. We wish her all the best in all her endeavours. G. Raghuraj General Manager IDRBT, Hyderabad Project Guide 2 ACKNOWLEDGEMENT I would like to express my sincere gratitude to the Institute for Development and Research in Banking Technology (IDRBT) and particularly Shri. G. Raghuraj, General Manager, IDRBT who was my guide in this project. This opportunity of learning all the nuances of a messaging platform and a major payment system application of the country was a boon to me as one rarely gets such exposure. I would not hesitate to add that this short stint in IDRBT has added a different facet to my life as this is a unique organisation being a combination of academics, research, technology, communication services, crucial applications, etc., and at the same time performing roles as an arm of regulation, spread of technology, facilitator for implementing technology in banking and non-banking systems, playing a role of an NGO (without being one) and many more varied activities. I am extremely grateful to Shri Raghuraj for his advice, innovative suggestions and supervision. I thank him for introducing me to an excellent banking application and giving me the opportunity to approach diverse sections of people starting from bankers to general public. I am thankful to the staff of SFMS department at IDRBT for helping me to get familiar with the application. They gave me a chance to study the application and its impact from different perspectives. I am thankful to my college, IIT Guwahati for giving me this golden opportunity to work in a high-end research institute like IDRBT. I am thankful for IDRBT for providing such an amazing platform for students to work in real application oriented research. Finally, I thank one and all who made this project successful either directly or indirectly. I am very thankful to the TCS team with whom I worked throughout my stint at IDRBT and the project was possible only with their cooperation. Akanksha Gupta Project Trainee Department of SFMS IDRBT, Hyderabad 3 Index Seq. No. Topic Page No. 1. SFMS Overview 3 2. NEFT Overview 4 3. Project Objectives 7 4. Why ISO 20022 7 5. Project Deliverables 9 6. Why XML 11 7. Conclusion & Future Scope 13 4 PROJECT SCOPE: To develop an interface for data entry for enabling the sender (originator) of an NEFT transaction to create the data (message) in XML format in SFMS instead of the present MT type format. SFMS Overview : Structured Financial Messaging System (SFMS) is a secure messaging solution which was deployed over INFINET (communication network) at IDRBT on 14 th December 2001, to facilitate and speed up communication between banks. It serves as the basic platform for inter-bank and also intra-bank applications and fulfils the requirements of domestic financial messaging. SFMS has a well-defined external Application Programs Interface (API) which are used to send and receive messages using Straight Through Processing (STP) and integrate all existing and future applications with the SFMS. Bank branches on CBS can generate messages in the SFMS format. These messages are sent over INFINET (Indian Financial NETwork – connecting all member banks through communication networks) to IDRBT through MQ middelware. The messages sent/received between SFMS and CBS through the queues are in string format. 5 Fig 1. SFMS architecture – message flow SFMS is an Indian messaging middleware similar to SWIFT (Society for Worldwide Interbank Financial Telecommunication) which is the international messaging system used for Financial Messaging globally. It follows SWIFT and ISO 15022 standards and is also capable of moving to new messaging standards. NEFT Overview : National Electronic Fund Transfer (NEFT) is an electronic funds transfer system that facilitates individuals, firms and corporates to electronically transfer funds. It uses SFMS format for messaging. This is a simple, secure, safe, fastest and cost effective way to transfer funds, especially for retail remittances. It does not have any restriction of centres or of any geographical area inside the country. NEFT has introduced the concept of centralised accounting system. Every individual’s bank account, that is sending or receiving funds transfer instructions, gets operated at one central location only which is maintained at the Reserve Bank of India, Mumbai. The individual branches participating in NEFT could be located anywhere across the country. 6 The RBI (NCC) sorts the transactions bank-wise and prepares accounting entries of net debit/credit for posting in the RBI books and passing on the messages to the banks participating in the system. Thus, the bank-wise messages showing the remittance received by banks along with details of the beneficiaries are transmitted to banks. Sender Functionality: This functionality constructs the messages meant for Core Banking Interface based on the Receiver bank IFSC Code and Application Identifier in a pre- defined BlockA and Block4 which are part of the message format. The messages are stored in the corresponding Queue of MQ connecting the CBS. Receiver Functionality: This functionality continuously polls on the MQ queue connected to the CBS and gets the available messages. It also verifies and validates the messages and updates the same in the SFMS database. After verification and validation of the messages, they are forwarded to the next processing stage or if the validation fails it is returned with by giving the reason for failure. The return messages are sent in a pre-defined message format to the corresponding CBS. The flow of N06 message in a typical NEFT transaction is as follows: • Step1: Each settlement participating bank creates 298N06 Message and sends it to the service centre. • Step2: At service Centre, all 298N06 Messages from the branches are consolidated and converted to bank-level 298N06 Messages to form lots of messages which contain 10 transactions in one 298N06 Message. This Message is sent to RBI-NEFT Branch through the IDRBT Hub. • Step3: Once Message reaches at RBI-NEFT centre, it checks for proper settlement batch-time and sends it to RTGS/DAD for accounting purposes. 7 • Step4: After accounting the RTGS sends confirmation Message to RBI- NEFT. • Step5: On receiving the message, RBI-NEFT system sends 298N02 Message to destination bank’s service centre which gives details of the beneficiary accounts. • Step6: 298N02 Message is consolidated and grouped branch-wise at the destination bank service centre and sent to the respective branches. • Step7: At every batch-end and day end, every bank service centre is sent a 298N04 Message which consists of all details about the hourly settlements of the day. The receiving banks process the remittance messages and effect the credit to the beneficiaries' accounts. Fig 2. Types of NEFT messages 8 Project Working Details Structured messages containing information about the funds to be transferred are transmitted from the sender bank’s system to receiving bank’s system through IDRBT. Each NEFT message consists of two Blocks: Block A and Block 4. They have certain fields identified by a given ‘field number’ and every field number has a unique meaning. The message creator is required to fill the transaction related information beside the corresponding field number present in Block 4. For e.g. ‘Field 2020’ refers to the message transaction reference number. Fig 3. NEFT message flow diagram 9 PROJECT OBJECTIVES : The present NEFT message format has certain issues like application specific messaging structure, method of standardization is based on ISO 15022 which is getting phased out, interoperability is based on bank’s architecture which is based on pre-core banking status, etc. In order to understand the information exchange, one needs to be familiar with the details of specific syntaxes (field names) used in the NEFT message. This requires a significant investment of time and technology. However, today’s B2B scenarios require more flexibility, especially when dealing with growing demands for process improvement efforts across the entire value chain. This is leading to an increased adoption of multiple XML-based B2B options. Enterprise architects should strive to create a B2B support infrastructure that is designed to take advantage of both old and new technology, as each can provide unique value in meeting the full range of external integration needs. SWIFT was based on the ISO 15022 standards. But SWIFT and some other financial communities have begun migrating to ISO 20022 standards (which is an upgraded version of ISO 15022) which use XML based syntax for messages. It has become the industry standard for syntax in financial messages, as messages formatted to SWIFT standards can be read and processed by many well-known financial processing systems. SWIFT cooperates with international organizations for defining standards for message format and content. Many firms use ISO 15022 but it doesn’t actually match their needs – they end up having to put lots of the message data into the “free-format text” fields, which means that they cannot be processed automatically. More room for data in the message means more STP. In order to meet the increasing diverse needs of agile organizations of the future, NEFT messages also need to be enabled to accept XML format.
Load more

Recommended publications
  • Standards at Transactional and Aggregated Level
    Standards at transactional and aggregated level 7th May 2014 eSupervision Workshop, Rome Overview The value, need and ability to capture transactions in a standard way in repositories as a foundation for regulatory analysis using the example of ISO 20022 The value of and need for connecting the transactional and detailed-level data standards and models (ISO 20022, ACORD, FpML, FIBO, FIX) with regulatory or aggregated data standards (XBRL, SDMX, XML) First, a look at internationally developed data standards for financial services and the ISO 20022 standard International Standards for Financial Services, ISO/TC68 ISO Technical Committee TC68 Financial Services SC2 SC4 SC7 ISO 20022 Security Securities Core Banking Standard ISO 20022 WG5 Registration ISO 20022 Technical LEI Management Standard Standard Group ISO 17442 Technical Registration Support Authority Group Standard Evaluation Groups Standards Managed by ISO/TC68/SC2, Security ISO TC68/SC2 Financial Services, Security Published Standards – ISO 9564 Personal Identification Number (PIN) management and security – ISO 11568 Key management (retail) – ISO 13491 Secure cryptographic devices (retail) – ISO 13492 Key management related data element -- Application and usage of ISO 8583 data elements 53 and 96 – ISO 15782 Certificate management for financial services (PKI) – ISO 16609 Requirements for message authentication using symmetric techniques – ISO 21188 Public key infrastructure management for financial services - Practices and policy framework Technical Reports ISO 13569 Information
    [Show full text]
  • Success Codes
    a Volume 2, No. 4, April 2011, ISSN 1729-8709 Success codes • NTUC FairPrice CEO : “ International Standards are very important to us.” • Fujitsu innovates with ISO standards a Contents Comment Karla McKenna, Chair of ISO/TC 68 Code-pendant – Flourishing financial services ........................................................ 1 ISO Focus+ is published 10 times a year World Scene (single issues : July-August, November-December) International events and international standardization ............................................ 2 It is available in English and French. Bonus articles : www.iso.org/isofocus+ Guest Interview ISO Update : www.iso.org/isoupdate Seah Kian Peng – Chief Executive Officer of NTUC FairPrice .............................. 3 Annual subscription – 98 Swiss Francs Special Report Individual copies – 16 Swiss Francs A coded world – Saving time, space and energy.. ..................................................... 8 Publisher ISO Central Secretariat From Dickens to Dante – ISBN propels book trade to billions ................................. 10 (International Organization for Uncovering systemic risk – Regulators push for global Legal Entity Identifiers ..... 13 Standardization) No doubt – Quick, efficient and secure payment transactions. ................................. 16 1, chemin de la Voie-Creuse CH – 1211 Genève 20 Vehicle ID – ISO coding system paves the way for a smooth ride ........................... 17 Switzerland Keeping track – Container transport security and safety.. .......................................
    [Show full text]
  • 20Th ABMF Meeting Agenda As of 6-Oct-2015
    20th ASEAN+3 Bond Market Forum (ABMF) Sands Expo and Convention Centre Marina Bay Sands, Singapore Sibos: 12-15 October ABMF meeting: 15-16 October 2015 TIME PROGRAM Programs recommended for the members to participate 12 October (Monday) Standards 09:00-09:45 How does ISO 20022 enable innovation in Asia Pacific? Forum Global trends in regulated securities markets: how to 09:00-09:45 Securities return to a path of growth? Standards 13:00-13:45 The top five benefits of ISO 20022: a 360 degree view Forum 14:00-15:15 Opening Plenary SIBOS Introduction to SWIFT's ISO 20022 harmonization Standards 15:30-16:15 framework Forum 15:30-17:00 A future for CSDs? MI Forum 13 October (Tuesday) Planning your ISO 20022 implementation: Myths, best Standards 09:00--9:45 practice and advice Forum Standardising the standard: the need for global ISO 20022 Standards 10:15-11:15 market practice Forum Securities, Securities market infrastructure innovation: the next 10:15-11:15 Market frontier Infrastructure Market infrastructures update: ISO 20022 plans and Standards 13:00-13:45 visions Forum Standards 14:00-14:45 MyStandards: a platform for ISO 20022 harmonization Forum Securities, Breaking the silos: Building a global assets inventory to 14:00-15:00 Standards optimize collateral management Forum 14:30-15:00 Cross-Border Stock Market Links in Asia: What Makes SWIFT Page 1 of 3 20th ABMF meeting agenda as of 6-Oct-2015 TIME PROGRAM One a Success? Institute Driving the industry towards a truly global ISO 20022 MI Forum, 15:30-16:30 standard SF ISO 20022 Harmonization
    [Show full text]
  • Newsletter ISO 20022
    WINTER 2010 VOLUME 2, ISSUE 2 ISO 20022 Newsletter IN THIS EDITION Dear RMG Members: Letter fom Gerard Hartsink ..................................................1 ince the 2008 Helsinki meeting, the RMG pursued a Highlights From “Meet the Tokyo Market” May 2010 ............2 S“Meet the Market” program where RMG members ISO 20022 Securities Standards: Asian Perspective ..............3 carved out time for host countries to invite local financial institutions to attend briefings on the ISO 20022 standard, Technical Support Group Prepares as well as provide RMG attendees with information about (TSG) 20022 Migration Paper ............................................5 their financial activities. This exchange has proven a valu- Securities Messaging Standards Development able educational tool where host firms and central bankers in the ASEAN+3 Countries ..................................................6 learn and anticipate what might be needed to implement the ISO A Tale of Two Standards: XBRL and ISO 20022 ..................10 20022 standard, and, in turn, Current Status of ISO 20022 Voting ..................................11 learn about progress being made locally by invitees in their areas of Message Extensions for Supplementary Data…. ..................12 expertise. Internal Governance of the ISO 20022 Registration Our recent meeting in Tokyo Management Group (RMG) ..............................................15 saw more than 100 participants New “For Dummies” Book Explains ISO 20022 ..................16 attending a briefing on the benefits of adopting ISO 20022. Our RMG Building the Single Euro Payments Area Based on group also learned about the new ISO Standards: A further progress report on SEPA................17 developments, state of the busi- The International Payments Framework ness, and what is progressing in Association is Formed ......................................................20 Japan, (see article titled in part ‘Meet the Tokyo Market’) as well as SWIFT’s Role as ISO 20022 Registration Authority ..............22 throughout Asia.
    [Show full text]
  • Settlement Common Elements
    Settlement Common Elements Settlement Common Elements Disclaimer The Securities Market Practice Group is a group of experts who devote their time on a voluntary basis to define global and local market practices for the benefit of the securities industry. The market practice documentation and recommendations produced by this organization are intended to solve common problems across the securities industry, from which financial institutions can derive clear benefits, to harmonize business processes and to facilitate the usage of message protocols ISO 15022 and ISO 20022. While the Securities Market Practice Group encourages the implementation of the market practices it develops, it is up to the financial institutions within each market to implement the market practices according to their needs and agreements with their business counterparts to support their businesses as efficient as possible. Although the SMPG has used all reasonable efforts to ensure accuracy of the contents of this document, the SMPG assumes no liability whatsoever for any inadvertent errors or omissions that may appear thereon. Moreover, the information is provided on an "as is" basis. The SMPG disclaims all warranties and conditions, either express or implied, including but not limited to implied warranties of merchantability, title, non-infringement and fitness for a particular purpose. Neither the SMPG, nor any of its members and/or contributors shall be liable for any direct, indirect, special or consequential damages arising out of the use of the information published in this document, even if the SMPG or any of its members have been advised of the possibility of such damage. Status: Final Preparation date: November 2000 Update date: March 2016 Update.
    [Show full text]
  • Bulgarian National Bank Consolidated Financial Statements for the Year Ended 31 December 2012 88 Bulgarian National Bank
    Bulgarian National Bank ANNUAL REPORT • 2012 Published by the Bulgarian National Bank 1, Knyaz Alexander I Square, 1000 Sofia Tel.: (+359 2) 9145 1351, 9145 1209, 9145 1231 Fax: (+359 2) 980 2425, 980 6493 Printed in the BNB Printing Centre Website: www.bnb.bg © Bulgarian National Bank, 2013 The BNB Annual Report for 2012 employs data published prior to 1 April 2013. Materials and information in the BNB 2012 Annual Report may be quoted or reproduced without further permission. Due acknowledgment is requested. The cover shows an engraving of the BNB building from the 1938 banknote with a nominal value of 5000 levs. ISSN 1313-1494 Honourable Chairman of the National Assembly, Honourable People’s Representatives, Under the provisions of Article 1, paragraph 2 and Article 51 of the Law on the Bulgarian National Bank, I have the honour of presenting the Bank’s 2012 Annual Report. Ivan Iskrov Governor of the Bulgarian National Bank BNB Governing Council Governing BNB Sitting from left to right: Penka Kratunova, Ivan Iskrov, Boryana Pencheva. Standing from left to right: Kalin Hristov, Statty Stattev, Rumen Simeonov, Dimitar Kostov. Governing Council Ivan Iskrov Governor Dimitar Kostov Deputy Governor Banking Department Rumen Simeonov Deputy Governor Banking Supervision Department Kalin Hristov Deputy Governor Issue Department Penka Kratunova Boryana Pencheva* Statty Stattev * As of 2 December 2012 Boryana Pencheva is a member of the BNB Governing Council. Until 1 December 2012 Oleg Nedyalkov was a member of the BNB Governing Council. Organisational
    [Show full text]
  • ISO 20022 RMG Newsletter
    ISO 20022 RMG Newsletter Volume 9, Issue 1 April 2018 Edition Convenor’s Note Welcome to the latest edition of the ISO 20022 RMG newsletter! By James Whittle. Convenor of the ISO TABLE OF CONTENTS 20022 RMG, NPSO (UK). Convenor’s Note 1 n this edition, the underlying Introduction 1 In this issue 2 theme is the resilience of ISO News 20022 to meet new business re- I Global Adoption, Tools, RMG Meetings, Other 2 quirements in financial services. ISO 20022 for Securities Remaining relevant in a time of im- ISO 20022 and Cross-border Fund Orders 6 mense industry change is one of the facets of ISO 20022 that ISO 20022 Investment Funds Update 9 ISO 20022 for Payments has accelerated its take-up. In the last newsletter the focus Swiss ISO 20022 Payments Harmonization 10 was on standards and regulation, which continue to drive The Meaning of Payments Purpose 11 adoption, however we now see the ISO 20022 community ISO 20022 Process and Technology taking a more proactive approach to handling change, Implementation Recommendations for MIs 14 meeting new requirements, and supporting interoperability. I An ISO standard for web-based APIs 14 see no slowing down of ISO 20022 adoption in 2018! Accelerating ISO 20022 Maintenance 16 Questions and contacts 20 I welcome the opportunity to share information and increase understanding about what is happening in the RMG and across the user community. It has always been my mantra to emerging requirements and continue to show resilience and ensure that the ISO 20022 standard is evolving in a way that superiority in the market.
    [Show full text]
  • Decoding Payments Message Standards
    Decoding payments message standards October 2019 Foreword Dear readers, It is our pleasure to bring to you the latest edition of PwC’s payments newsletter. In this edition, we have focused on the technology behind message formats and specifications for processing transactions across various payments systems, the benefits of message standardisation across payment rails, and how ISO 20022 can help to achieve security and transparency across domestic and cross-border payments. We have also evaluated the ISO 20022 payments message standard and use cases, compared this standard with other existing payments message standards, and provided suggestions on the way forward towards standardisation. We hope you will find this to be an insightful read. To know more about payments message standards or share feedback, please write to: [email protected] or [email protected] 2 PwC Decoding payments message standards - October 2019 Table of contents Introduction Messaging standards – Key considerations and Market updates Payments technology a comparison way forward updates 4 7 10 14 16 3 PwC Decoding payments message standards - October 2019 Introduction 4 PwC Decoding payments message standards - October 2019 Introduction The International Organisation for Standardisation (ISO), an Some of the challenges faced by payments messaging standards built international body which sets global and commercial standards decades back are: worldwide, has defined various standards for facilitating the flow of messages related to payments/financial transactions. Over the years, many countries have adopted various standards for domestic 1 2 3 payments transfer such as ISO 8583, ISO 15022, American National The standards heavily Payments Different applications, Standards Institute (ANSI) X12, and Electronic Data Interchange for use ‘free-format’ fields systems using resources and Administration, Commerce and Transport (EDIFACT).
    [Show full text]
  • BEA Weblogic Adapter for ISO 15022
    BEA WebLogic Adapter for ISO15022™ User Guide Release 7.0 Document Date: November 2002 Copyright Copyright © 2002 BEA Systems, Inc. All Rights Reserved. Copyright © 2002 iWay Software. All Rights Reserved. Restricted Rights Legend This software and documentation is subject to and made available only pursuant to the terms of the BEA Systems License Agreement and may be used or copied only in accordance with the terms of that agreement. It is against the law to copy the software except as specifically allowed in the agreement. This document may not, in whole or in part, be copied photocopied, reproduced, translated, or reduced to any electronic medium or machine readable form without prior consent, in writing, from BEA Systems, Inc. Use, duplication or disclosure by the U.S. Government is subject to restrictions set forth in the BEA Systems License Agreement and in subparagraph (c)(1) of the Commercial Computer Software-Restricted Rights Clause at FAR 52.227-19; subparagraph (c)(1)(ii) of the Rights in Technical Data and Computer Software clause at DFARS 252.227-7013, subparagraph (d) of the Commercial Computer Software--Licensing clause at NASA FAR supplement 16-52.227-86; or their equivalent. Information in this document is subject to change without notice and does not represent a commitment on the part of BEA Systems. THE SOFTWARE AND DOCUMENTATION ARE PROVIDED “AS IS” WITHOUT WARRANTY OF ANY KIND INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. FURTHER, BEA Systems DOES NOT WARRANT, GUARANTEE, OR MAKE ANY REPRESENTATIONS REGARDING THE USE, OR THE RESULTS OF THE USE, OF THE SOFTWARE OR WRITTEN MATERIAL IN TERMS OF CORRECTNESS, ACCURACY, RELIABILITY, OR OTHERWISE.
    [Show full text]
  • Society for Worldwide Interbank Financial Telecommunication
    SOCIETY FOR WORLDWIDE INTERBANK FINANCIAL TELECOMMUNICATION 12th January 2007 Fabrice Demarigny Secretary General The Committee of European Securities Regulators 11/13 Avenue de Friedland 75008 Paris France Dear Mr Demarigny, Use of Reference Data Standard Codes in Transaction Reporting – Ref CESR/06-648b SWIFT welcomes the consultation opportunity offered by CESR on the issue of Reference Data Standard Codes in Transaction Reporting. As stated in our responses to previous consultations, SWIFT is committed to the goal of achieving a harmonised European financial market, and we welcome every opportunity to continue our involvement in achieving this goal. SWIFT would be pleased to provide any further clarification or detail on the comments that we have made. Questions relating to our response may be addressed to either of the contact points below. Yours Sincerely Richard Young Securities Markets - SWIFT S.W.I.F.T. s.c. 7th floor - The Corn Exchange - 55 Mark Lane - London EC3R 7NE – UK - United Kingdom Telephone: +44 (020) 7762 2000 - Fax: +44 (020) 7762 2222 - www.swift.com VAT: GB 447 002086 SOCIETY FOR WORLDWIDE INTERBANK FINANCIAL TELECOMMUNICATION Committee of European Securities Regulators (CESR) Use of Reference Data Standard Codes in Transaction Reporting CESR/06-648b Public Consultation Response from SWIFT Background SWIFT is an industry owned and governed co-operative that acts as a central standards body for the financial industry. SWIFT is recognised by the 'de juré' international standards setters such as ISO (International Organisation for Standardisation), ITU (International Telecommunication Union) and UN/ECE (United Nations / Economic Commission for Europe) as an official international liaison organisation which contributes to the initiation, definition and promotion of a number of financial standards.
    [Show full text]
  • Corporate Actions
    CORPORATE ACTIONS GETTING STARTED WITH ISO 20022 MESSAGING VERSION 2.0 MAY 1, 2019 Copyright © 2019 by The Depository Trust & Clearing Corporation (“DTCC”). All rights reserved. This work (including, without limitation, all text, images, logos, compilation and design) is proprietary and protected by copyright, and is for the exclusive use of users authorized by DTCC. If this work is received from DTCC in any electronic medium, authorized users of this work are granted a limited, non-exclusive, non-transferable, non-sublicensable and freely revocable license to make reproductions and transmissions necessary for downloading and storage of this work on the users' computers and to print one or more paper copies from the electronic version for their own use. Other than to this limited extent, no part of this work (including any paper copies thereof or print versions thereof) may be printed, copied, altered, modified, posted, reproduced, displayed, published, sold, licensed, used or distributed (including by transmission) in any form or by any means, or stored in any information storage and retrieval system, without DTCC's prior written permission. The services described above are provided under the “DTCC” brand name by certain affiliates of The Depository Trust & Clearing Corporation (“DTCC”). DTCC itself does not provide such services. Each of these affiliates is a separate legal entity, subject to the laws and regulations of the particular country or countries in which such entity operates. Please see www.dtcc.com for more information on DTCC, its affiliates and the services they offer. All product or service names are the property of their respective owners.
    [Show full text]
  • Uncovering Systemic Risk Regulators Push for Global Legal Entity Identifiers
    a Uncovering systemic risk Regulators push for global Legal Entity Identifiers by Paul Janssens Regulatory concerns Regulators too have taken a specific The recent financial crisis has underscored the need for additional interest in LEIs. In the USA, the Dodd- transparency and regulation in financial markets. Globally, regulators Frank Wall Street Reform and Consumer are conducting systemic risk analyses aimed at understanding Protection Act (DFA) created the Office of Financial Research (OFR) with the the aggregate risks of entities and their counterparties across asset specific task of collecting large quantities classes and regions. Precise and accurate identification of legal enti- of pricing, position and trading information ties engaged in financial transactions is important to private markets and analysing it to uncover systemic risks. and government regulators alike. Other US regulators will need to perform similar tasks. An essential component of enabling Most financial firms have developed In Europe, meanwhile, the European regulators to conduct such risk analysis is their own LEI solutions in-house, an Securities Market Authority (ESMA) and the creation and maintenance of a global, approach that creates inefficiencies. the European Systemic Risk Board (ESRB), standard Legal Entity Identifier (LEI), the Tracking counterparties and calculating which held its inaugural meeting in January core record attributes which comprise it, exposures across multiple data systems 2011, have been set up to collect transactions and a utility to support it. In other words, is complicated and expensive, and it can reporting and analyse global systemic risks. the adoption of a reliable, internationally result in costly errors. Precise identification of financial firms is accepted LEI solution.
    [Show full text]