Global Legal Entity Identifier Foundation Launches
The Global Legal Entity Identifier Foundation (GLEIF) has held the inaugural meeting of the foundation board in Zurich, Switzerland. The GLEIF is a Swiss not-for-¬profit foundation domiciled in Basle; also the headquarters of the Financial Stability Board (FSB), which established the Foundation.
The Legal Entity Identifier (LEI) is a 20-digit, alpha-numeric code that connects to key reference information that enables clear and unique identification of entities participating in global financial markets.
The GLEIF will further the development of a global LEI System, to uniquely identify parties to financial transactions, in the public interest, and without any licensing, intellectual property or similar restrictions.
Over the past six months, board members have worked closely with the FSB and the Regulatory Oversight Committee (ROC), comprised of financial regulators from across the globe, to prepare for the founding of the GLEIF.
There are nearly 300,000 LEIs in issuance, and the LEI has been mandated by the US Commodity Futures Trading Commission (CFTC), the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA), and is being considered for use by multiple other financial regulators around the world.
The GLEIF will contribute to and facilitate financial stability objectives, including: improved risk management, better assessment of micro and macroprudential risks, facilitation of orderly resolution, transparency into market abuse, curbing financial fraud, and higher overall quality and accuracy of financial data.
It will operate under recommendations endorsed by the Group of 20 (G20) finance ministers and central bank governors.
The GLEIF board members are as follows: