09 February 2018
Basel
Reporter: Brian Bollen

GLEIF and SWIFT launch open source BIC-to-LEI relationship file


The Global Legal Entity Identifier Foundation (GLEIF) has published the first monthly relationship file that matches a business identifier code (BIC) assigned to an organisation against its legal entity identifier (LEI).

With the launch of the open source file, GLEIF and SWIFT have pioneered a cooperation model, which enables market participants to link and cross-reference these key entity identifiers free of charge for the first time.

Stephan Wolf, GLEIF CEO, said: “Entity identification can be a time-consuming, costly and complex task. Relevant information is often stored in disparate internal and external systems and tagged under different client ID numbers.

The open source BIC-to-LEI relationship file is an important step towards consolidating information. This will significantly reduce the cost associated with entity verification to date.”

The BIC-to-LEI relationship file is built upon a mapping process established by SWIFT and certified by GLEIF. It is published on the GLEIF website in CSV format and will be updated on a monthly basis. GLEIF explained that as of February 2018, more than one million LEIs have been issued to legal entities globally.

Of the approximate 130,000 BICs assigned to date, currently, some 45,000 pertain to organisations that are legal entities or foreign branches and therefore qualify for mapping against LEIs.

GLEIF suggested that the availability of the relationship file will ease the process of gathering, aggregating and reconciling counterparty information based on interoperability across parallel ID platforms.

It said this is particularly relevant to service providers active in the payments and over-the-counter (OTC) derivatives markets concerned with client relationship management, or due diligence relevant to know-your-customer (KYC) and know-your-supplier (KYS) requirements.

The BIC (ISO 9362) is an international standard developed by the International Organization for Standardization (ISO) for the identification of institutions within the financial services industry. SWIFT is the registration authority for the BIC standard appointed by the ISO. It receives BIC registration requests, assigns a BIC and publishes the related BIC data record.

The LEI is a 20-digit, alpha-numeric code based on the ISO 17442 standard. It enables clear and unique identification of legal entities engaging in financial transactions. Each LEI contains information about an entity’s ownership structure to answer the questions of ‘who is who’ and ‘who owns whom’ among market participants.

GLEIF explained it ensures free access to the complete LEI data pool with the Global LEI Index. It adds that this is the only global online source that provides open, standardised and high-quality legal entity reference data.

It offers its certification of LEI mapping service to interested data vendors and other organisations to ensure that the LEI is appropriately matched to the applicable identifier.

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
BoE release consultation on a new rule for central counterparties
16 February 2018 | London | Reporter: Jenna Lomax
BoE states that this proposed rule of written notice would “support the UK Government’s approach to the implementation of the EU Network and Information Systems Directive”
ASX sees 5.8 percent increase in collateral management activity
16 February 2018 | Sydney | Reporter: Jenna Lomax
The increase in the use of derivatives and OTC was due to a rise in futures trading, OTC clearing and collateral management activity
SBL Network bolsters its P2P securities lending team
16 February 2018 | London | Reporter: Jenna Lomax
SBL Network Limited has hired Charlotte Clout, reporting to Tammy Phillips, CEO at SBL
Citi’s agency lending sales chief departs
16 February 2018 | New York | Reporter: Drew Nicol
Citi’s Americas head of sales for it’s agency securities lending, collateral management, and separate account cash management businesses, Jeff Bonaldi, has left to pursue a number of entrepreneurial ventures
SIFMA testifies on legislative proposals regarding derivatives
15 February 2018 | Washington DC | Reporter: Brian Bollen
SIFMA has testified to the US House of Representatives Committee on Financial Services Subcommittee on areas that could make regulations more risk-sensitive, less complex and clearer
More than 35 percent of investors asked are planning to add to their European exposure in 2018
ECB rings collateral changes
14 February 2018 | Frankfurt | Reporter: Brian Bollen
The European Central Bank has issued a series of amendments relating to the Eurosystem’s monetary policy implementation