CHAN, K.K. and MILNE, A., 2019. The global legal entity identifier system: How can it deliver? Journal of Risk and Financial Management, 12(1): 39.
We examine the global legal entity identifier (LEI) system for the identification of
participants in financial markets. Semi-structured interviews with data professionals revealed the
many ways in which the LEI can improve both business process efficiency, and counterparty and
credit risk management. Larger social benefits, including the monitoring of systemic financial risk, are
achievable if it becomes the accepted universal standard for legal entity identification. Our interviews
also review the substantial co-ordination and investment barriers to LEI adoption. To address these,
a clear regulatory-led road map is needed for its future development, with widespread application in
This is an Open Access Article. It is published by MDPI under the Creative Commons Attribution 4.0 Unported Licence (CC BY). Full details of this licence are available at: http://creativecommons.org/licenses/by/4.0/
This paper is an updated version of our earlier working paper written with the support of a grant 2012-5-50CD from the Alfred P. Sloan Foundation, updated to take account of developments in the intervening five years.