Tag Archives: Dodd-Frank
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…)
Karen Hsu shares why reference data is a big issue today and how Informatica helps customers better manage risk and comply with new regulation.
For additional research on reference data trends, see the following report from Aite Group:
My recent sequence of blog posts has focused on the Dodd-Frank Act, the creation of an Office of Financial Research, and some implications for both internal and external data governance and data quality. I have spent a little time reading the recent policy statement released by the Office of Financial Research (OFR) that talks about one initiative for data standards, namely the Legal Entity Identifier.
Section 154(b)(2)(A) of the Dodd-Frank requires the OFR to create a public reference database of financial companies, and in order to access specific data about any one financial company, one would expect there to be a means for unique identification. The policy statement does provide some context as a basis for justifying the creation of a legal entity identifier for unique counterparty identification. (more…)
Achieving IT Efficiency Through Consolidation And Legacy Application Retirement In Banking And Capital Markets
One of the top challenges among financial firms of all sizes is how to efficiently manage information within their organization in the face of explosive data growth. More and more data needs to be retained for a longer period to meet regulatory compliance. At the same time, they need to meet customer SLAs. The wave of mergers and acquisitions in the financial services industry leads to IT consolidations effort that leaves many legacy applications behind. The cost savings from IT consolidations would only be realized by retiring those legacy applications to eliminate the associated operational and maintenance costs. These legacy applications are kept around because the data needs to be retained for compliance.