Bridging pre-trade and post-trade processes with the Legal Entity Identifier for a more efficient trade and client life-cycle management

Burcu Mentesoglu Tuncer and Clare Rowley
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Burcu Mentesoglu Tuncer: Senior Business Relations & Policy Research Manager, Global Legal Entity Identifier Foundation (GLEIF), Germany
Clare Rowley: Head of Business Operations, Global Legal Entity Identifier Foundation, Switzerland

Journal of Securities Operations & Custody, 2021, vol. 13, issue 3, 208-217

Abstract: High reliance of post-trade processes on nonstandardised datasets, different data definitions within the same firm and legacy systems make the post-trading services complex and costly for all market participants. In this paper, we discuss how the Legal Entity Identifier (LEI), a data element that is associated with post-trade process and reporting, has the potential to transform client onboarding and pre-trade activity and as a result improve the whole trade life cycle. We present GLEIF’s new Validation Agent model as a practical solution that allows financial institutions to obtain and maintain LEIs for their clients in cooperation with accredited LEI Issuer Organizations. Once the link is made between the client and the LEI, the financial institutions can more effectively address reporting throughout the trade life cycle, especially in the critical phase of posttrade settlement.

Keywords: Legal Entity Identifier; transaction reporting; client onboarding; non-economic data; data reporting; standardisation (search for similar items in EconPapers)
JEL-codes: E5 G2 K22 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jsoc00:y:2021:v:13:i:3:p:208-217

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