EXCHANGE DATA’S GUIDE TO FINANCIAL CODES
The LEI Handbook tells you everything you need to know about the rapidly changing lynchpin of the global economy: financial codes
No other handbook offers such an up-to-date examination of global coding. Describing the world’s 40 major codes, The LEI Handbook is an essential tool for anyone in finance seeking to understand and use today’s codes.
In addition, it provides detailed descriptions of structural tier-level components of the LEI, thus highlighting the different business processes and requirements linked to its implementation.
Exchange Data International (EDI) is pleased to publish this book through its sister company, Chancellor Publications.
EDI is a leading financial data provider with more than 20 years’ experience in the sector. During this period, what has been most striking to us is not the lack of information about the financial sector – after all, there are tens, if not hundreds, or thousands of books, magazines, articles, journals, blogs, websites, data feeds, corporate publications and government reports published every year about global finance – but rather the almost total absence of information about the nuts and bolts of the financial sector: how it works, how its various components parts fit together; and the systems that underpin it or make it fragile.
There can be few other major industries where there is such a paucity of information on the “possibly unexciting” but “absolutely essential” basics.
Exchange Data’s Guide to LEI and other codes aims to address this deficit in some small way by focusing on the very specific area of security coding. Security coding may well be an arcane subject; however, no trading, settlement and clearing can take place without the use of codes.
As the world found out to its cost in 2008, coding matters! Many factors caused the financial crisis, among them irrational exuberance, a high degree of leverage and deregulation. The absence of consistent coding clearly exacerbated the situation. Why? Without consistent coding, which allows one to link all the securities issued by an entities and its subsidiaries, Tier 1 investment banking firms were unable to “see”, and therefore measure, their entire exposure to Lehmans, and other bankrupt or distressed financial institutions. The result was financial institutions needing to constantly revise their estimates – and, generally, it was a revision upwards – of their dangerous levels of exposure to these institutions.
Ozren Cvjetic is an economist with a BA from Seattle University and a Harvard University-trained mathematician, with a background in European Union regulatory finance and emerging market central banks. He is a member of the G20 private sector preparatory group, sponsored by the Financial Stability Board, and an expert on the Legal Entity Identifier. As a member of this group, he co-authored a major report on LEI operations which was adopted at the G20 summit in January 2013. Mr. Cvjetic is a founder and academic board member of the Masters in Science in Global Financial Data Management at the European Centre for Peace and Development, established by the UN University for Peace. He is also on the board of the European Heart Network’s member foundation, the Foundation of Health and Heart, from Bosnia-Herzegovina. As an avant-garde filmmaker, he produced two feature films in 2008 and 2016. Two of his short films were presented at the Festival de Cannes in 2007 and 2015. His feature film, Americana (Love Poem), premiered at the 23rd Sarajevo film festival in 2017.
Foreword by Francis Gross
In the network, the diversity of human languages and cultures collides with the computers’ need for uniformity in language. Yet the speed of technical change cannot be matched by the speed of social change. There is therefore no quick solution to what has quickly grown into a profound global problem.
Yet, there is a beginning to a solution. It lies in identification: one object, one name. Globally. Period.
The present work is an important step in the beginning of that beginning
Senior Adviser, Directorate General Statistics
European Central Bank
What You’ll Learn
- Entity Codes
– International Codes
– National Codes
- Security Codes
– International Codes
– National Codes
– Open Source
- Miscellaneous Codes