LEIs: A Panacea for Market Risk?
Dodd-Frank mandated the creation of Legal Entity Identifiers, or LEIs, to identify institutions participating in financial transactions, particularly in the swaps and derivatives markets, and help regulators and firms determine the amount of risk held across the entire financial system. But while the industry is making "slow and steady progress," according to Steven Goldstein, CEO of data management firm alacra, there are challenges with the quality of the data. Goldstein and TABB Group founder and CEO Larry Tabb discuss the need for a standard LEI format and what it will take for the LEI database to provide value beyond regulatory compliance.