Slide 1: Legal Entity Identifier: fulfilling the needs of global financial services firms and regulators
Legal Entity Identifier: fulfilling the needs of global financial services i fifirms and d regulators l t September 2011 Strictly Private and Confidential
Slide 2: Global Drivers for Standards and Consistent Data
Global Drivers for Standards and Consistent Data y In response to the financial crisis of recent years years, global regulators are establishing protocols to collect collect, analyze and compare financial transaction and holdings data as a means to assess systemic risk and prevent further financial
Slide 3: Components of the Dodd-Frank Act
Components of the Dodd-Frank Act y Title I — Financial Stability y Title II — Orderly Liquidation Authority y Title III — Transfer of Powers to the Comptroller of the Currency, the Corporation, and the Board of Governors y Title IV — Regulation Reg lation of Advisers Ad isers to Hedge Funds F nds an
Slide 4: Current Focus — Title I, Financial Stability
Current Focus — Title I, Financial Stability y Title I of the Act creates – The Financial Stability Oversight Council (FSOC) and – The Office of Financial Research (OFR) which is part of the US Department of Treasury and reports into the FSOC y The aim of the creation of the FSOC and the OFR is to f
Slide 5: Need for a Legal Entity Identifier Standard
Need for a Legal Entity Identifier Standard y The initial focus of global regulators has been to identify parties to financial transactions in a standardized and consistent way. Legal entity identification is seen as the foundation for the collection of and subsequent analysis of data y Therefore, a
Slide 6: ISO TC68 Legal Entity Identifier Standard
ISO TC68 Legal Entity Identifier Standard y Based on the requirements documented by the industry, industry a coalition of financial services firms and trade associations in conjunction with the Global Financial Markets Association (GFMA) have recommended the ISO TC68 Legal Entity Identifier standard
Slide 7: ISO Standards for Financial Services
ISO Standards for Financial Services ISO Technical Committee TC68 Financial Services LEI Standard WG4 and WG5 SC2 SC4 SC7 ISO 20022 ISO 17442 ISO20022 Technical Security Securities Banking RMG WG6 Standard TSG RA SEGs 6
Slide 8: ISO LEI Standard Entity Coverage
ISO LEI Standard Entity Coverage y LEIs can be assigned to a legal person or structure that is organized under the corporate laws of any jurisdiction Note: These entities include but are not limited to all financial intermediaries, banks and finance companies, all entities listed on an exchange, all
Slide 9: ISO TC68 LEI Standard Proposed Structure
ISO TC68 LEI Standard Proposed Structure y 20 alphanumeric characters — 18 characters plus 2 check digits y Check digit validation using ISO 7064, Data Processing, Check Character Systems y Data record attributes (minimum) – The official name of the legal g entity y as recorded in the official regis
Slide 10: Participants in the LEI Process
Participants in the LEI Process Global Steering Committee (17 members, 17 firms and associations) US Trade Group Members (4 members, 4 associations) • Association for Financial • Fidelity • The Clearing House Markets in Europe (AFME) • Goldman Sachs • Futures Industry Association (FIA) • Bank of Ame
Slide 11: Anticipated Timeline
Anticipated Timeline Current Status of the Development of the ISO TC68 LEI Standard For the 2-phase Process y Date by which the first phase of approval of the standard by the TC was completed: End June 2011 y Date by which the second phase of approval of the standard by the TC will be completed: 14t
Slide 12: LEI Impact and Usage
LEI Impact and Usage y Usage of standardized LEIs will facilitate aggregation and analysis of clients’ clients transactions and interactions with counterparties across their banking relationships y In addition to supporting new regulatory reporting requirements, introduction and implementation of a
Slide 13: What is Next?
What is Next? y There are additional needs for standardization to support the requirements of regulators in the solutions they are developing to address the data collection and analysis needs and the reporting requirements placed on global industry resulting from the global financial crisis – Identi
Slide 14: Citi's Industry Leadership
Citi’s Industry Leadership y Citi’s Citi s Global Transaction Services is a leader and innovator in developing and implementing standards and market best practices for the benefit of our clients – International Standards ISO TC68 Chair ISO TC68 Subcommittees and WG6 ISO TC68 SC2 Chair Member
Slide 15: Industry Leadership at Work
Industry Leadership at Work y Work the industry issues y Implement ISO standards and standard messaging y Influence standards and market practice which are critical to the businesses that we conduct and support for our clients y Use standards as our foundation, a stable basis, from which we can buil
Slide 16: efficiency, renewable energy & mitigation
IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have bee