TMCnet News
DTCC/SWIFT Tops Legal Entity Identifier Providers in TABB/Alacra Q3-2014 LEI Rankings, but LEI Process Comes Up Short as Percentage of Relevant Entities Covered DeclinedCapital markets research firm TABB Group and Alacra, a leading provider of legal, counterparty and reference data solutions, announced today that DTCC/SWIFT led 13 other Legal Entity Identifier (LEI) registration authorities around the globe in TABB Group's Q3-2014 LEI Comprehensiveness Ranking based on data consistency and uniformity. Overall globally, however, the LEI process is challenged. LEIs are legal entity identifiers required by global financial regulators to better identify firms and counterparties engaged in financial transactions. TABB's rankings compare LEI providers on the consistency and uniformity of their LEI data as aggregated by P-LEI.org. Alacra provides a more in-depth analysis of LEI quality, comparing issued LEIs against the body of global rated, regulated and listed counterparties and entities that should have an LEI. "Having a consistent, uniform database is only part of the picture in implementing an effective LEI system," says Larry Tabb, founder/CEO of TABB Group. "Ensuring appropriate entities are covered is, if not more, important. Although the LEI universe is growing, the universe of relevant and covered institutions isn't. To better gauge this, we partnered with Alacra to track important LEI adoption statistics. Alacra's process for assessing and tracking ongoing LEI relevance to the financial services industry enables us to have greater insight into whether LEIs being created are relevant to institutions, regulators and the health of the industry." "The LEI process continues to face challenges," says Alacra's Alan Samuels, vice president, reference data solutions. "Only 15% of entities with a credit rating, 15% of entities that are listed on global exchanges, 17% of organizations with a SWIFT BIC code and 51% of European Banking Association entities have an LEI. While many are properly set up, a large percentage of them were issued to organizations not engaged in financial markets transactions, let alone complex derivatives transactions that LEIs were developed to track." The 14 LEI providers and their LEI IDs include:
In-depth information on TABB's LEI Comprehensiveness Ranking, complete with 9 detailed exhibits, is available at TabbFORUM, the 25,000-member global capital markets community for peer-to-peer commentary, or by writing to [email protected]. About Alacra With offices in New York and London, Alacra develops workflow applications that enable 300,000 end users at over 200 financial institutions, professional service firms and corporations to find, organize, analyze and present mission-critical business information. About TABB Group Based in New York and London, TABB Group is the research and consulting firm focused exclusively on capital markets, based on the interview-based, "first-person knowledge" research methodology developed by Larry Tabb. |
