NEW YORK, May 2, 2017 /PRNewswire/ -- CUSIP Global Services (CGS), a leading provider of unique security and entity identifiers and descriptive data that enable efficient global trading, joins industry partner The Depository Trust & Clearing Corporation (DTCC) in celebrating that its subsidiary operating the Global Markets Entity Identifier utility (GMEI utility) has received official accreditation from the Global Legal Entity Identifier Foundation (GLEIF). The GMEI utility was among the first legal entity identifier (LEI) issuers to be endorsed by the LEI Regulatory Oversight Committee (LEI ROC) and continues to operate as the largest by share of the total LEIs issued worldwide.
The LEI is a global data standard developed in the aftermath of the 2008 worldwide financial crisis for precisely identifying parties to financial transactions. With its GMEI utility, DTCC has issued over 243,000 LEIs to entities from over 200 jurisdictions, representing approximately 50% share of the total LEIs issued worldwide.
CGS has collaborated with DTCC on LEI issuance since February 2013 by allowing market participants to simultaneously apply for an official LEI as part of any request for CUSIP or ISIN identifiers. This streamlined approach, which seamlessly embeds new LEI issuance into the new security issuance workflow, has resulted in significant increases in the number and type of LEIs issued. Specific issuer types realizing a notable jump in new LEI assignment through the CGS collaboration include both funds and municipalities.
"The advent of the LEI has been one of the most significant advances in operational risk management in the last decade, however it will only work if it is adopted widely," said Scott Preiss, head of CUSIP Global Services. "By integrating the LEI request process directly into the operational workflows that currently exist in the financial markets, this group of partners has created a practical, real-world solution that is achieving critical mass. We are honored to be a part of this initiative."
"CGS has been instrumental in facilitating issuers from the U.S. and many other jurisdictions' access to the GMEI utility's LEI service in a way that is seamless with the CGS CUSIP and ISIN issuance process," said Ron Jordan, Managing Director of Data Services, DTCC. "We look forward to continuing this collaboration as an accredited LEI issuer."
The GLEIF, whose purpose is to ensure that the LEI remains the industry standard best suited to providing open and reliable data for unique legal entity data identification management, is evaluating the suitability of organizations seeking to operate within the Global LEI System (GLEIS) – as issuers of LEIs and custodians of LEI reference data. Receiving accreditation reflects that an LEI issuer has sufficient capabilities in place to ensure high data quality in the GLEIS. Under the ISO 17442 standard, financial firms, issuers of securities and funds are all eligible for an LEI.
The financial services industry relies on CGS' unrivaled experience in uniquely identifying instruments and entities to support efficient global capital markets. Its extensive focus on standardization over the past 45 years has helped CGS earn its reputation as a trusted originator of quality identifiers and descriptive data, ensuring that essential front- and back-office functions run smoothly. Relied upon worldwide as the industry standard provider of reliable, timely reference data, CGS is also a founding member and co-operates the Association of National Numbering Agencies (ANNA) Service Bureau, a global security and entity identifier database for over 34 million public and privately traded instruments, contributed by 92 national numbering agencies and 27 partner agencies representing 255 different countries. CGS is managed on behalf of the American Bankers Association (ABA) by S&P Global Market Intelligence, with a Board of Trustees that represents the voices of leading financial institutions. For more information, visit www.cusip.com.
About The American Bankers Association
The American Bankers Association represents banks of all sizes and charters and is the voice for the nation's $13 trillion banking industry and its 2 million employees. Learn more at www.aba.com.
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SOURCE CUSIP Global Services