The implications of legal entity identifiers on payments systems

Paul Janssens
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Paul Janssens: SWIFT Belgium Headquarters, Belgium

Journal of Payments Strategy & Systems, 2014, vol. 8, issue 2, 147-156

Abstract: The Legal Entity Identifier (LEI) is a key component of the different market transparency regulations that emerged after the financial crisis. This paper demystifies the LEI and explores the background behind the creation and adoption of this new counterparty identifier. The development and implementation of LEI is a combined effort between the industry and the public authorities, which is probably a first ever. While the regulation currently focuses on the derivatives markets, the operational impacts on payments systems are not immediately significant, and there are still many unknowns. The paper highlights that the LEI is now a reality all around the globe and a new element that the financial industry will have to take into consideration going forward. In this new environment of greater regulation, organisations need to reconsider the silo-based approach and recognise the need for improved reference data that LEI can bring. Regulatory compliance can be a catalyst to improve reference data management by addressing these challenges at an enterprise level.

Keywords: Legal Entity Identifier; standards; systems; derivatives; regulation; Financial Stability Board (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jpss00:y:2014:v:8:i:2:p:147-156

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