DTCC Connection

Aug 22, 2014 • DTCC Connection

DTCC’s Legal Entity Identifier Service Turns Two

by Shannon Chisholm

DTCC & SWIFT GMEI Utility Ranks First in TABB Group’s Ranking of LEI Infrastructures


TABB Group ranked the GMEIutility first overall in its inaugural comprehensive quarterly ranking of the 14 LEI providers across the world’s financial centers. LEI providers were measured based on data validity and size with the GMEI utility receiving a total comprehensiveness score of 97%.

TABB Group’s LEI Comprehensiveness Ranking measures LEI providers on the validity and comprehensiveness of their LEI data as aggregated by P-LEI.org, analyzing LEI quality against three scales: number of entries; validity of regional information; and the completeness of essential LEI field-level information.

“We congratulate the entire GMEI utility team, including the DTCC product and technology team, the Avox operations team and our partners at SWIFT and Kingland Software Corporation, on being independently recognized as the highest ranked LEI provider,” said Ron Jordan, DTCC Chief Data Officer.

Based in New York and London, TABB Group is the research and consulting firm focused exclusively on capital markets.

To learn more about the TABB Group Ranking, please click here.

August 2014 marks the two-year anniversary of the launch of The Depository Trust & Clearing Corporation’s (DTCC)  Global Markets Entity Identifier (GMEI) utility, its legal entity identifier (LEI) solution offered in collaboration with SWIFT.

Developed in response to calls for new financial market regulation following the 2008 financial crisis, the GMEI utility creates and applies a single, universal standard identifier to any organization or firm involved in a financial transaction globally. The solution went live in August 2012 with SWIFT providing the ISO numbering expertise, Avox providing the validation expertise and Kingland Systems Corporation providing the technology infrastructure.

The GMEI utility has been endorsed by the Regulatory Oversight Committee (ROC), the global group of regulators established by the Group of 20 (G20) and the Financial Stability Board (FSB) to oversee development of the Global Legal Entity Identifier System (GLEIS). The GMEI utility operates as a pre-Local Operating Unit (pre-LOU) within the GLEIS. Its endorsement by the ROC means that codes assigned are recognized as LEIs by all of the more than 50 regulators that are members.

Over the past two years, the GMEI utility has had many successes. Today, the service holds more than 140,000 globally accepted registered entities from over 140 countries, maintaining approximately 50% global market share making it the largest pre-LOU within the GLEIS.

“These achievements are illustrative of the seriousness with which DTCC takes its role within the GLEIS,” said William Hodash, DTCC Managing Director of Business Development. “The purchase of Avox in 2010 and investments we made in launching the GMEI utility after winning industry and CFTC designations were all for the purpose of enabling regulators to greatly improve systemic risk analysis. This is an objective strongly supported by the industry that governs both DTCC and SWIFT.”

The GMEI utility also has established global partnerships with CUSIP Global Services in the U.S., NordLEI in Sweden, LuxCSD in Luxembourg and The Canadian Depository for Securities in Canada to facilitate LEI issuance for their customers. By combining the capabilities of the GMEI utility with those of local partners, including their market positions, client and regulatory relationships and day-to-day operational interfaces, the industry is able to avoid redundant infrastructure costs.

“These partnerships are a vital to the success of the federated operating model of the GLEIS,” said Ron Jordan, DTCC Chief Data Officer. “Our partners rely on us to provide best-in-class LEI assignment which we have worked tirelessly to achieve.”

For more information about the GMEI utility, please contact customer support at customerservice@gmeiutility.org or visit www.gmeiutility.org to register.

 

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