The Global Legal Entity Identifier System: Will It Deliver?

56 Pages Posted: 15 Sep 2013

See all articles by Ka Kei Chan

Ka Kei Chan

Brunel University London

Alistair Milne

Loughborough University - School of Business and Economics

Date Written: August 12, 2013

Abstract

We examine the global legal entity identifier (LEI) system for the identification of participants in financial markets. Interviews with data professionals reveal substantial private benefits from using LEI to improve efficiency of business processes and smaller private benefits in counterparty and credit risk management. Very much larger social benefits, including monitoring of systemic financial risk, are achievable if it becomes the accepted universal standard for identification in all business processes. Therefore, to overcome adoption barriers, a clear road map is needed for its future development with initial priority given to applications in business operations and regulatory reporting.

Keywords: Legal Entity Identifiers, Regulation, Risk Management, Dodd-Frank Act, Operational Efficiency, Systemic Risk

JEL Classification: G20, G28, M15

Suggested Citation

Chan, Ka Kei and Milne, Alistair K. L., The Global Legal Entity Identifier System: Will It Deliver? (August 12, 2013). Available at SSRN: https://ssrn.com/abstract=2325889 or http://dx.doi.org/10.2139/ssrn.2325889

Ka Kei Chan

Brunel University London ( email )

Kingston Lane
Uxbridge, Middlesex UB8 3PH
United Kingdom

Alistair K. L. Milne (Contact Author)

Loughborough University - School of Business and Economics ( email )

Epinal Way
Loughborough
Leicestershire, LE11 3TU
United Kingdom

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