GFMA Commends CFTC’s LEI Designation

Release Date: July 24, 2012

Contact: Liz Pierce, 212.313.1173, lpierce@gfma.org 

GFMA Commends CFTC’s LEI Designation  

New York, NY, July 24, 2012–GFMA today released the following statement in response to the Commodity Futures Trading Commission’s (CFTC) designation of DTCC-SWIFT as the legal entity identifier (LEI) solution providers who will support issuance of the CFTC Interim Compliant Identifiers (“CICIs”) as required by the U.S. Swap Data Recordkeeping and Reporting Requirements under the Dodd-Frank Act:

 “GFMA commends the CFTC’s designation of DTCC-SWIFT as the CICI providers for reporting swap transactions under their rule. These organizations have clearly demonstrated their capability to deliver an effective legal entity identification system that not only meets the requirements of the Dodd-Frank Act but could also be implemented as a global solution.

“As laid out in our 2011 recommendation to regulators, GFMA believes that a federated LEI system with a strong central utility to ensure data quality is the best path forward. GFMA has recommended that DTCC and SWIFT serve as this central utility and partner with ANNA and its network of local national numbering agencies (NNA’s) to register, validate, and maintain LEIs in the NNA’s home markets. This partnership will ensure the highest quality data is available in the LEI database. Data quality is essential for realizing the benefits of an LEI system. 

“As the Financial Stability Board works to develop a global LEI solution, the industry remains committed to working with regulators and stakeholders to be a productive participant in this process. A uniform, globally consistent legal entity identification solution is critical for improving risk management in the financial industry. It will give regulators a powerful tool for monitoring systemic risk, and firms a better way to monitor counterparty exposure.”

More information is available on the GFMA website: http://www.gfma.org/initiatives/legal-entity-identifier-(lei)/legal-entity-identifier-(lei)/.

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The Global Financial Markets Association (GFMA) brings together three of the world’s leading financial trade associations to address the increasingly important global regulatory agenda and to promote coordinated advocacy efforts. The Association for Financial Markets in Europe (AFME) in London and Brussels, the Asia Securities Industry & Financial Markets Association (ASIFMA) in Hong Kong and the Securities Industry and Financial Markets Association (SIFMA) in New York and Washington are, respectively, the European, Asian, and North American members of GFMA. For more information, visit http://www.gfma.org.

 

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