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The Global Legal Entity Identifier System: How Can It Deliver?

Author

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  • Ka Kei Chan

    (Department of Economics and Finance, Brunel University London, Uxbridge UB8 3PH, UK)

  • Alistair Milne

    (School of Business and Economics, Loughborough University, Loughborough LE11 2TU, UK)

Abstract

We examine the global legal entity identifier (LEI) system for the identification of participants in financial markets. Semi-structured interviews with data professionals revealed the many ways in which the LEI can improve both business process efficiency, and counterparty and credit risk management. Larger social benefits, including the monitoring of systemic financial risk, are achievable if it becomes the accepted universal standard for legal entity identification. Our interviews also review the substantial co-ordination and investment barriers to LEI adoption. To address these, a clear regulatory-led road map is needed for its future development, with widespread application in regulatory reporting.

Suggested Citation

  • Ka Kei Chan & Alistair Milne, 2019. "The Global Legal Entity Identifier System: How Can It Deliver?," JRFM, MDPI, vol. 12(1), pages 1-29, March.
    • Handle: RePEc:gam:jjrfmx:v:12:y:2019:i:1:p:39-:d:211838
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    References listed on IDEAS

    as
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    5. Flood, M. D. & Jagadish, H. V. & Raschid, L., 2016. "Big data challenges and opportunities in financial stability monitoring," Financial Stability Review, Banque de France, issue 20, pages 129-142, April.
    6. Milne, Alistair, 2006. "What is in it for us? Network effects and bank payment innovation," Journal of Banking & Finance, Elsevier, vol. 30(6), pages 1613-1630, June.
    7. Mark Montoya & Linda F. Powell & Elena Shuvalov, 2011. "Legal entity identifier: what else do you need to know?," Finance and Economics Discussion Series 2011-31, Board of Governors of the Federal Reserve System (U.S.).
    8. Erich Hille, 2013. "Recent developments in restructuring the Austrian banking reporting system," Journal of Banking Regulation, Palgrave Macmillan, vol. 14(3-4), pages 269-284, July.
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    Cited by:

    1. Douglas J. Cumming & Sofia Johan & Anshum Pant, 2019. "Regulation of the Crypto-Economy: Managing Risks, Challenges, and Regulatory Uncertainty," JRFM, MDPI, vol. 12(3), pages 1-14, July.

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