Tag Archives: counterparty
Financial Stability Board Pushes Legal Entity Identifier to the G20– Vote Expected this Month – What’s Next?
Hot off the press! The Financial Stability Board (FSB) published today (June 8th, 2012) a report entitled “A Global Legal Entity Identifier for Financial Markets” for the G20 supervisors for consideration and response to the mandate issued by the G20 at the Cannes Summit for a final vote at the end of the month in Mexico. It sets out 35 recommendations for the development and implementation of the global LEI system. These recommendations are guided by a set of “High Level Principles” which outline the objectives that a global LEI system should meet.
The proposed global Legal Entity Identifier (LEI) is expected to help regulators identify unique counterparties across the financial system and monitor the impact of risky counterparties holding positions with the banks. Assuming LEI is approved by the G20 this month, it will be the first of these infrastructure standards to be implemented globally requiring firms to integrate, reconcile and cross-reference the new LEI with existing counterparty identifiers and information, as well as manage accurate and current legal hierarchies. (more…)
One of the most critical first steps for financial services firms looking to implement multidomain master data management (MDM) is to quantify the cost savings they could achieve.
Unfortunately, a thorough analysis of potential ROI is also one of the steps least followed (a key culprit being disconnects between business and IT).
This shortcoming is spotlighted in a new Informatica white paper, “Five Steps to Managing Reference Data More Effectively in Investment Banking,” which outlines key questions to ask in sizing up the cost implications of bad data and antiquated systems, such as:
- How long does it take to introduce a new security to trade?
- How many settlements need to be fixed manually?
- How many redundant data feeds does your firm have to manage?
- How accurate and complete are your end-of-day reports?
- Do you have the data you need to minimize risk and exposure? (more…)