The Legal Entity Identifier

How the new ID system will help traders and regulators manage market risk

Think of the LEI as a barcode, license plate or fingerprint for every firm that transacts in the global markets. This unique identifier allows regulators and other firms to accurately assess the aggregate risk of financial institutions and may help prevent debacles like the Lehman Brothers bankruptcy and its domino effect.

This paper outlines how the LEI system will work and the challenges and opportunities it presents.