FSB confirmed the Regulatory Oversight Committee (ROC) of the Global Legal Entity Identifier System (GLEIS) as the International Governance Body for the globally harmonized identifiers used to track over-the-counter (OTC) derivatives transactions, with effect from October 01, 2020. In a letter to the ROC Chair François Laurent, the FSB Chair Randal K. Quarles confirmed the transfer of all governance and oversight responsibilities for the harmonized derivatives identifiers and data elements to the ROC.
Globally harmonized identifiers and data elements can help authorities to obtain a comprehensive global view of the OTC derivatives markets. The Unique Product Identifier (UPI) will identify the products reported to trade repositories consistently across FSB jurisdictions. The Unique Transaction Identifier (UTI) will identify transactions reported to trade repositories and allow authorities to follow their modifications during their whole lifecycle. The Critical Data Elements (CDE) will capture other important characteristics of the transactions. Reference to the Legal Entity Identifier (LEI) in the harmonized derivatives identifiers and data elements will allow consistent monitoring of legal entities’ trading activity, exposures, and interconnectedness in the global OTC derivatives markets.
ROC will be responsible for the governance of UPI, UTI, and CDE, which includes oversight of the UPI service provider designated by FSB, The Derivatives Service Bureau (DSB). The ROC has been tasked with finalizing the appropriately rigorous oversight arrangements of DSB. FSB asks ROC to update the FSB Plenary by January 2021 and, if necessary thereafter, on the progress in finalizing those oversight and contingency arrangements, given their relevance to the effective operation of the UPI and the UPI system and to the continued monitoring of financial stability risk.
Effective Date: October 01, 2020
Keywords: International, Banking, Securities, OTC Derivatives, Governance, LEI, UPI, Critical Data Elements, Trade Repository, UTI, DSB, Systemic Risk, LEIROC, FSB
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
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