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Bridging pre-trade and post-trade processes with the Legal Entity Identifier for a more efficient trade and client life-cycle management
Journal of Securities Operations & Custody,
13
(3),
208-217
(2021)
Abstract
High reliance of post-trade processes on nonstandardised datasets, different data definitions within the same firm and legacy systems make the post-trading services complex and costly for all market participants. In this paper, we discuss how the Legal Entity Identifier (LEI), a data element that is associated with post-trade process and reporting, has the potential to transform client onboarding and pre-trade activity and as a result improve the whole trade life cycle. We present GLEIF’s new Validation Agent model as a practical solution that allows financial institutions to obtain and maintain LEIs for their clients in cooperation with accredited LEI Issuer Organizations. Once the link is made between the client and the LEI, the financial institutions can more effectively address reporting throughout the trade life cycle, especially in the critical phase of posttrade settlement.
Keywords: Legal Entity Identifier; transaction reporting; client onboarding; non-economic data; data reporting; standardisation
The full article is available to subscribers to the journal.
Author's Biography
Burcu Mentesoglu Tuncer joined the Global Legal Entity Identifier Foundation (GLEIF) in January 2018, and she is Senior Business Relations & Policy Research Manager at GLEIF. In her current capacity, she is leading GLEIF’s public consultations, managing GLEIF’s Globally Important Financial Institutions Relationship Group and engaging in various business development projects. Prior to joining GLEIF, she has worked at the Ministry of Economy of Turkey as a Senior International Trade Specialist for 8 years. She has briefly served as a Consultant at the Swiss Agency for Development and Cooperation. She has obtained master’s degrees in Asian Studies from the Middle East Technical University (Turkey) and in International Affairs from the Graduate Institute, Geneva (Switzerland).
Clare Rowley is the Head of Business Operations at the Global Legal Entity Identifier Foundation (GLEIF). Prior to working with GLEIF, she worked at the United States Federal Deposit Insurance Corporation, where she led technology initiatives improving bank resolution programmes and contributed to research on subprime mortgages. She is a CFA® charterholder and holds an MS in Predictive Analytics from Northwestern University.
