Transcript DTCC – SWIFT Legal Entity Identifier Utility

Legal Entity Identification
October 26, 2011
Ken Price
Co-founder, CEO, Avox Limited
Agenda
• Avox overview
• LEI Overview
• LEI: Proposed Governance and Operating
Models
Background
• UK headquarters
• Offices in London, Tokyo, Sydney, Singapore,
Shanghai, New York and Wrexham (Wales)
• Wholly owned subsidiary of the DTCC
• Business entity data focus
•“Counterparty Data Provider of the Year” for
three years running
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Data Coverage Includes:
Name
Identifiers (partial list, subject to license)
Legal Name
Business Registry ID Type
Also Known As Name(s)
Business Registry ID
Formerly Known As Name(s)
SWIFT BIC
Addresses
Federal Tax ID Number
Address Type (e.g. registered, physical, correspondence, HQ…)
FSA Firm Reference Number
Country
Fitch Company Identifier
Country Code (two/three digit ISO)
Exchange Name
State/Province/Region/County
Exchange ID
State/Province/Region/County code (where applicable)
Other Third Party Identifiers
City
Regulatory
Postal Code
15A6 Indicator
Address (lines 1-4)
FSA Classification
Industry Codes
Regulated By
Industry Code Type (SIC, NAIC …)
Deficient Jurisdiction
Industry Code
FATF Indicator
Industry Description
Legal Form
Parent Information
Other
Ultimate Parent
Date of Registration
Immediate Parent
Website URL
A collaborative industry utility for business entity data
- Accurate: Every record is revalidated to client SLA –
audit trail is made available
- Timely: leverages real time
business intelligence of
contributors (70% of
changes originated by
clients)
- Identified: Records are
persisted with client specific
ID’s and a universal Avox ID
(“AVID”)
- Data Ownership: Clients
retain ownership of their
own data – Avox just makes
it better
DTCC – SWIFT - ISO
Legal Entity Identifier (LEI)
Proposal
June 28, 2011
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US-based industry owned corporation
Operates on an at-cost basis
Serves the global financial industry
100% owner of Avox
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International standards
body organization
Develops and manages
international standards used
by financial organizations to
support financial
transactions
EU-based member owned cooperative
Serves the global financial industry
Brings the financial community together to
shape market practice and consider solutions
to issues of mutual interest
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Unique Characteristics
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Governance Structure
Expertise in Financial Services
Oversight by Financial Regulators
Core Capabilities in Financial Industry
– Numbering standards
– Operations and messaging standards
– Counterparty identification leader
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ISO 17442: TC68 LEI Proposed Structure
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20 characters – 18 alphanumeric characters plus 2 numeric check digits
Check digit validation using ISO 7064, Data Processing, Check Character
Systems
The ISO data record attributes at a minimum includes
– the official name of the legal entity as recorded in the official registers, or
with the fund manager for collective investment vehicles.
– The address of the headquarters of that legal entity or the address of the
fund manager.
– The country of incorporation denoted by ISO 3166, Codes for the
representation of names of countries and their subdivisions
– the date of the first LEI assignment
– the date of last update of the LEI information.
– the date of expiry, if applicable
In addition, other relevant attributes stated by IOSCO as Identification Data
such as other relevant contact information and hierarchical information
concerning to the entity’s relationship to affiliates can be included in the LEI
repository (subject to data privacy regulations)
Business Model
• Accelerates Self-Registration
– Contributing 400k relevant records for self-validation
• Complemented by third-party registration
– From firms, NNAs, jurisdictional registration
authorities, regulators
• Cost recovery achievable in short-term
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Key Success Principles
• LEI data is free of cost and restriction
• Data quality is centrally managed
• Quality management standards are
transparent and constantly improved
• LEI data and quality standards can be
challenged by any user (collaboration)
• Scope of data fields covered is kept to a
minimum until the Utility is operational
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LEI Utility Governance
International Oversight
LEI Governance Committee
LEI Utility (SWIFT / DTCC)
DTCC
Facilities Management
ISO
SWIFT
ISO Registration Authority
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Operating Model
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Questions?