2017/18 – Big Bang Year for LEI?

Paul Kennedy – GLEIF Board Director Data Management Summit – London - 15 March 2017

Content

• What is the LEI and who is GLEIF?

• What data users can get for free – now, and soon: ▫ Quality – clean, cleaner, cleanest data ▫ Improved Integration – APIs and linkage to 3rd party data ▫ A Connected World – inter-entity relationships

• Over the horizon?

WHAT IS THE LEI?

LEI = Legal Entity Identifier

. A unique global identifier for corporate entities that is accessible free of charge as a broad public good for the benefit of the users in the public and private sector . The Financial Stability Board (FSB), at the request of the G20, created the LEI in 2012 as a reference code to uniquely identify legally distinct entities that engage in financial transactions

LEI as an Identity Label

The LEI is a unique 20 digit alphanumeric LEI comes with standardized business code based on ISO 17442 standard, and card information, validated at point of assigned to legal entities entry against Authoritative Sources

Example from www.gleif.org

Validation

International network of LEI issuers

LEI Data

. The LEI is a broad public good . All data is accessible without any barriers or costs . All data and related documents are published under cc. commons . GLEIF actively supports

Benefits from using LEIs

Up until now, legal entity reference data has been proprietary, siloed and non-standardized. The LEI changes that:

. Standardized identification management leads to lower error rates and less costs for client and supplier relationship . Easier mapping of legal entity reference data from multiple suppliers saves IT and data operations costs . Higher data quality across operational systems leads to reduced data management cost, since LEI data is quality-assured . Increased internal and external reporting capabilities at lower cost . Provides a global standard and facility upon which to build your identity management processes for corporate entities

Public Sector: Existing and Proposed Rulemaking

*As of 16 September 2016

. This list is growing all the time

. Latest consultation document (on fund relationships in the LEI system) released by regulators on Monday!

* https://www.gleif.org/en/lei-focus/regulatory-use-of-the-lei#

Who is GLEIF

. Global LEI Foundation, a not-for-profit Swiss foundation created in 2014 and overseen by 70 global regulators

. Acts as Accreditation and Standards Agency for a Visibility. Stability. Integrity. network of commercial LEI-issuing partners (LOUs)

. GLEIF not just a standard-setting body; it manages the central repository of all LEI data, updated daily, and makes that available free of charge. GLEIF also provides data quality checks and challenge facilities

. GLEIF is also the Maintenance Agency for ‎the new Entity Legal Form (ELF) standard (ISO 20275)

. Website (www.gleif.org) accessible in 14 languages

LEI Issuers: Accreditation

The Global LEI System is transitioning from a system of regulator endorsement to one of GLEIF accreditation.

Business Model - Price Range for Legal Entities * GLEIF receives US$19 for each new and renewed LEI **

New LEI 75 $ 219 $

50 $ 119 $

LEI yearly renewal

* These are the published official prices by some LOUs and converted to USD by GLEIF. Competition law requires that GLEIF will not interfere in pricing policies of the LOUs. ‎ ** GLEIF’s‎LEI‎fees‎are‎expected‎to‎drop‎significantly‎due‎to‎economies‎of‎scale.

LEIs Issued per Country

Total (Feb 2017): 490,000

Count Count of for operating entities LEIs

How to Access LEI Data

. GLEIF collects the LEI data from the LOUs daily and publishes the concatenated file in the Common Data File format . All LEI data are free of charge and downloadable from www.gleif.org . GLEIF also provides a search engine with multiple criteria and download formats

LEI Search Live on GLEIF.ORG

. LEI Overview page with statistics  Number of LEIs per Country, Issuer, Registration Status, Entity Status  Drill down function: Visuals can be clicked, which leads to the detailed LEI data . Compare LEI Records  Specific LEI records selected from search results can be compared . Export in Excel, CSV, XML and JSON format  The complete content of the GLEIF Concatenated File can be exported  Any search result up to 2000 records can be exported  Specific LEI records selected from search results can be exported

Registration Authorities List Enhancing data accuracy through public monitoring

. GLEIF also publishes the‎”GLEIF‎Registration‎Authorities‎List”

. Standardizes the cross reference of a legal entity to its local authoritative source

QUALITY

Global LEI Monthly Data Quality Report (individual LEI issuers get more detailed reports on their own performance)

Challenge Facility Enhanced data accuracy by public monitoring

. Challenge to LEI & LE-RD service is available via the GLEIF website since 13 July 2016. (https://www.gleif.org/en/lei-data/challenge-lei-data)

. The online facility is part of the GLEIF data quality management program

Step 1: Challenge the record Step 2: Login & Suggest Step 3: Review & Submit

IDENTIFIER MAPPING

Easing the Integration and Legacy Problem

. Some data suppliers have offered their own mapping services between LEI and other identifier schemes (e.g. SWIFT BICS-to-LEI since 2013)

. GLEIF has built up significant expertise in deploying open, robust, decentralised data processes

. GLEIF can provide the infrastructure to facilitate mapping between LEI and other identifiers, and integrate that into the LEI data quality processes (certification, quality monitoring, open challenge, etc.)

. Better APIs will allow users to integrate LEI data directly into workflow

. Several‎partnerships‎are‎already‎underway…

GLEIF Partnerships and ‘Who Owns What’

. GLEIF agreed with SWIFT (www.swift.com) as the Registration Authority of the ISO BIC 3166 register to deliver LEI-to-BIC Mapping services in Summer 2017

. G‎LEIF agreed with ANNA (www.anna-web.org) as the Registration Authority of the ISO ISIN 6166 register to deliver LEI-to-ISIN Mapping end 2017

. GLEIF agreed with XBRL Global (www.xbrl.org) to include LEI in the XBRL taxonomy for further standardization of the reporting of financial and business information

Mapping Program Taxonomy Issuer Global Partner (proposed)

ISO BIC 9362 ISO ISIN 6166

INTER-ENTITY RELATIONSHIPS

Making Direct & Ultimate Parent Information Available

Mission: To collect, validate and publish data on “who owns whom”

. Prototype exercise successfully concluded on 7 December 2016 by GLEIF and five ‘first‎mover’‎LEI-issuing partners

. Collection and dissemination of ownership data will start in Summer 2017

Timeline

1 May 2017: Collection, validation Early 2017: and publication of parent GLEIF concluded a information commences. Early 2018: prototype Level 2 data All LEI issuers are Level 2 data for the collection exercise with 5 expected to have the majority of the LEI pilot organizations capability to register and population renew LEIs including will be available Level 2 data

OVER THE HORIZON

Further Leveraging the LEI “Eco-System”?

. Create a more compelling case for corporates outside of those directly engaged in financial services . Closer alignment with other identifier standards and systems, e.g. product codes, digital certificates, etc. . Improved matching algorithms and analytics . Materially reduce compliance costs for KYC, and simultaneously move the activity beyond just regulatory compliance

“With every data scrape, or use of an LEI, the picture of global corporate activity is becoming slightly less opaque thanks to the‎work‎of‎a‎hidden‎army‎of‎geeks”

Financial Times

Thank You For Your Attention! For more information, visit the GLEIF website at www.gleif.org

Limitations

This presentation contains confidential and proprietary information and/or trade secrets of the Global Legal Entity Identifier Foundation (GLEIF) and/or its affiliates, and is not to be published, reproduced, copied, or disclosed without the express written consent of Global Legal Entity Identifier Foundation. Global Legal Entity Identifier Foundation, the Global Legal Entity Identifier Foundation logo are service marks of Global Legal Entity Identifier Foundation. ISO and the ISO logo are service marks of International Organization for Standardization. Other products and services and company names mentioned here in are the property of and may be the service mark or trademark of their respective owners.