A Legal Entity Identifiers (LEI) - is a identifier associated with a single corporate entity that identifies that entity in the financial market. In essence, LEIs constitutes a “social security number” system for entities. Although no common entity ID convention exists in the market today, a range of regulatory initiatives are driving the creation of a universal LEI standard for financial markets.
LEI will help enable organizations and regulators to more effectively measure and manage risk while providing substantial operational efficiencies and customer service improvements.
The FSB LEI Expert Group has been working on identifying the key issues and developing framework solutions.The FSB has,
however, decided to provide early clarity on two technical points.First, the Expert Group has agreed that a 20-character alphanumeric code is a good basis for
the global LEI code. Second,the eligibility criteria as well as the reference data that the regulatory community views as essential and, consequently, would
require to be associated with the identifier.For more information on the technical features of LEI click here.
ISDA and the industry are committed to promoting widespread adoption of the global LEI.
The CFTC Interim Compliant Identifier (CICI), as its name implies, is an interim identifier that will be used in recordkeeping and reporting under CFTC jurisdiction.
The Commission is participating in an international process, coordinated by the Financial Stability Board (FSB), to establish governance principles and technical requirements for a global legal entity identifier (LEI). Until the FSB endorses the recommendations, the CFTC is referring to the identifier to be used in reporting as the CFTC Interim Compliant Identifier (CICI). The Commission anticipates that the CICI will transition into the global LEI, and be referred to as the LEI.
- CICI Utility
- CICI Utility FAQs
- September, 2012 - Demystifying Legal Entity Identifiers September 2012
- August 22, 2012 - Webinar: LEI initiative and implementation of the CFTC Compliant Interim Identifier (CICI)/Webinar video
- August 14, 2012Office of Financial Research Frequently Asked Questions: Global Legal Entity Identifier (LEI)
- March 27, 2012 LEI Overview Presentation
Timeline and Milestones:
DTCC and SWIFT launch CFTC Interim Compliant Identifier (CICI) utility.
Fall 2011 to June 2012
The industry recommended DTCC-ISO-SWIFT-ANNA alliance implements an LEI utility.
The trade associations present an industry recommendation for the organizations that they believe are best suited to operate a global LEI.
The trade associations release of a comprehensive set of requirements for establishing the legal entity identification system. A Request for Proposal (RFP) is issued, followed by a vendor selection process to identify one or more solution providers best suited for delivering the global LEI solution.
A coalition of financial-services trade associations (the “Trade Associations”) came together to initiate the process of developing requirements for the Global LEI Solution, identify potential solution provider(s), and drive consensus among the global financial services community.
LEI Representation in FpML
LEI Representation - As per the ISO 17442 standard, the LEI will be 20 characters: 18 alphanumeric characters + 2 numeric check digits.
LEIs will be referenced in FpML by overriding the default partyIdScheme URI with a new URI that points to the LEI standard or (draft) ISO Standard 17442.
The new URI is http://www.fpml.org/coding-scheme/external/iso17442
The FpML syntax is shown in the below XML snippet:
At some point (TBD) we may decide to default the partyIdScheme to point the iso17442 URI, at which time the partyIdScheme could be omitted i.e.,
but for now the partyIdScheme URI needs to be explicit.
The CICI is represented in FpML using a different URI: http://www.fpml.org/coding-scheme/external/cftc/interim-compliant-identifier
August 21, 2012
- Securities Industry and Financial Markets Association (SIFMA) and GFMA LEI website
- CFTC Announces Website for Market Participants to Register for CFTC Interim Compliant Identifiers (CICI) Press Release
- DTCC and SWIFT launch CFTC Interim Compliant Identifier (CICI) utility press release Press Release
Keynote Speech at the "Building a Global Legal Entity Identifier Framework" Symposium, "Towards a common financial language" presented by Andrew Haldane, Executive Director, Financial Stability, Bank of England
January 31, 2012
Recommended Solution Providers’ Project Scope & Preliminary Implementation Plan
March 7, 2012
Financial Stability Board (FSB) Press Release on Technical Features of the LEI
August 12, 2011
Office of Financial Research (OFR) Releases Timeline on Global Initiative to Establish a Legal Entity Identifier
August 3, 2011
ISO LEI Standard Development Process Overview
July 18, 2011
Financial Stability Board (FSB) press release in support of LEI initiatives
Statement of the Department Treasury on Legal Entity Identification for Financial Contracts
December 10, 2010
Creating a Linchpin for Financial Data: The Need for a Legal Entity Identifier; Discussion Paper: Approach toward establishing and maintaining a standardized legal entity identifier, or LEI.
Comment Letters and Submissions:
- April 12, 2012
ISDA support for the designation of ISO, DTCC, SWIFT and ANNA as they apply to the Commodity Futures Trading Commission (CFTC) to be named as providers of CFTC Interim Compliant Identifiers (CICIs)
- November 22, 2011
ISDA, as part of a Coalition, Submit an Update to FSB Workshop Participants as a Follow Up to September FSB LEI Workshop
- September 12, 2011
ISDA and Other Associations Submit Comments to the G-20 Finance Ministers Advocating a Uniform and Global Legal Entity Identifier Solution.
- April 12, 2011
Trade Associations Submit Comments to the G-20 Finance Ministers Advocating a Uniform, Global LEI Solution
- January 31, 2011
Group of Associations Submit Comments to the US Department of Treasury on the Statement on Legal Entity Identification for Financial Contracts