THE LEI HANDBOOK by Ozren Cvjetic
Exchange Data’s Guide to Financial Codes
The guide to LEI and other financial codes is the only one of its kind. No other financial handbook offers such a comprehensive, up-to-date examination of the codes which govern the financial system and are key to all who work in finance.
After the global crisis of 2008, the world focused on the instability and volatility of the financial system as new regulations emerged with a common purpose: ‘ to bring transparency to the financial market’. The LEI has become a vital tool for transparency and stability.
Looking at more than 40 identifiers, this book provides detailed descriptions of structural tier-level components of the LEI, thus highlighting the different business processes and requirements linked to the implementation of the LEI.
Entity codes International
Global Industry Classification Standard (GICS)
International Standard Industrial Classification System (ISIC)
North American Industry Classification System (NAICS)
Standard Industrial Classification (SIC)
Avox International Business Entity Identifier (AVID)
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 theirdangerous levels of exposure to these institutions.
Security Codes International
CUSIP International Numbering System (CINS)
International Security Identification Number (ISIN)
Market Identifier Code (MIC)
Exchange ticker codes
Stock Exchange Daily Official List Code (SEDOL)