Kenneth E. Bentsen, Jr., president and CEO of SIFMA and CEO of SIFMA's global affiliate GFMA, writes that global regulators need to mandate the use of legal-entity identifiers. Learn more at SIFMA's LEI Resource Center.
The Financial Stability Board decided to go with a structured approach to legal-entity identifiers. SIFMA supports the idea. "We're comfortable with the structured approach," Managing Director David Strongin said. Depository Trust & Clearing and the Society for Worldwide Interbank Financial Telecommunication, which have been issuing numbers since August for the Commodity Futures Trading Commission, have been using a random approach for LEIs.
Tony Freeman, Omgeo's director of industry relations, discusses efforts to introduce legal-entity identifiers. Freeman explains the benefits of LEIs and how the plans will help financial institutions in Asia.
Leaders from the Group of 20 nations support the plan for international legal-entity identifiers. However, industry insiders say LEIs need support from national regulators. "It has to be regulated. There are so many benefits, so it makes no sense not to do it," said Julia Sutton of Royal Bank of Canada. A coalition of financial services firms and trade associations, working through SIFMA's global affiliate, GFMA, have presented to regulators recommendations for the organizations it believes are best suited to operate a global LEI system. Learn more here.