Legal Entity Identification

October 26, 2011Ken Price

Co-founder, CEO, Avox Limited

Agenda

• Avox overview• LEI Overview• LEI: Proposed Governance and Operating

Models

3

Background

• UK headquarters• Offices in London, Tokyo, Sydney, Singapore, Shanghai, New York and Wrexham (Wales)• Wholly owned subsidiary of the DTCC• Business entity data focus•“Counterparty Data Provider of the Year” for three years running

Website URLImmediate Parent

Date of RegistrationUltimate Parent

OtherParent Information

Legal FormIndustry Description

FATF IndicatorIndustry Code

Deficient JurisdictionIndustry Code Type (SIC, NAIC …)

Regulated ByIndustry Codes

FSA ClassificationAddress (lines 1-4)

15A6 IndicatorPostal Code

RegulatoryCity

Other Third Party IdentifiersState/Province/Region/County code (where applicable)

Exchange IDState/Province/Region/County

Exchange NameCountry Code (two/three digit ISO)

Fitch Company IdentifierCountry

FSA Firm Reference NumberAddress Type (e.g. registered, physical, correspondence, HQ…)

Federal Tax ID NumberAddresses

SWIFT BICFormerly Known As Name(s)

Business Registry IDAlso Known As Name(s)

Business Registry ID TypeLegal Name

Identifiers (partial list, subject to license)Name

Website URLImmediate Parent

Date of RegistrationUltimate Parent

OtherParent Information

Legal FormIndustry Description

FATF IndicatorIndustry Code

Deficient JurisdictionIndustry Code Type (SIC, NAIC …)

Regulated ByIndustry Codes

FSA ClassificationAddress (lines 1-4)

15A6 IndicatorPostal Code

RegulatoryCity

Other Third Party IdentifiersState/Province/Region/County code (where applicable)

Exchange IDState/Province/Region/County

Exchange NameCountry Code (two/three digit ISO)

Fitch Company IdentifierCountry

FSA Firm Reference NumberAddress Type (e.g. registered, physical, correspondence, HQ…)

Federal Tax ID NumberAddresses

SWIFT BICFormerly Known As Name(s)

Business Registry IDAlso Known As Name(s)

Business Registry ID TypeLegal Name

Identifiers (partial list, subject to license)Name

Data Coverage Includes:

- Accurate: Every record is re-validated to client SLA – audit trail is made available

- Timely: leverages real time business intelligence of contributors (70% of changes originated by clients)

- Identified: Records are persisted with client specific ID’s and a universal Avox ID (“AVID”)

- Data Ownership: Clients retain ownership of their own data – Avox just makes it better

A collaborative industry utility for business entity data

DTCC – SWIFT - ISOLegal Entity Identifier (LEI)

Proposal

DTCC – SWIFT - ISOLegal Entity Identifier (LEI)

Proposal

June 28, 2011

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• US-based industry owned corporation

• Operates on an at-cost basis• Serves the global financial industry• 100% owner of Avox

• EU-based member owned cooperative• Serves the global financial industry• Brings the financial community together to shape

market practice and consider solutions to issues of mutual interest

• International standards body organization

• Develops and manages international standards used by financial organizations to support financial transactions

Unique Characteristics

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• Governance Structure• Expertise in Financial Services• Oversight by Financial Regulators• Core Capabilities in Financial Industry

– Numbering standards– Operations and messaging standards– Counterparty identification leader

ISO 17442: TC68 LEI Proposed Structure• 20 characters – 18 alphanumeric characters plus 2 numeric check digits• Check digit validation using ISO 7064, Data Processing, Check Character

Systems• The ISO data record attributes at a minimum includes

– the official name of the legal entity as recorded in the official registers, or with the fund manager for collective investment vehicles.

– The address of the headquarters of that legal entity or the address of the fund manager.

– The country of incorporation denoted by ISO 3166, Codes for the representation of names of countries and their subdivisions

– the date of the first LEI assignment – the date of last update of the LEI information.– the date of expiry, if applicable

• In addition, other relevant attributes stated by IOSCO as Identification Data such as other relevant contact information and hierarchical information concerning to the entity’s relationship to affiliates can be included in the LEI repository (subject to data privacy regulations)

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Business Model

10

• Accelerates Self-Registration– Contributing 400k relevant records for self-validation

• Complemented by third-party registration– From firms, NNAs, jurisdictional registration

authorities, regulators• Cost recovery achievable in short-term

Key Success Principles

• LEI data is free of cost and restriction• Data quality is centrally managed• Quality management standards are

transparent and constantly improved• LEI data and quality standards can be

challenged by any user (collaboration)• Scope of data fields covered is kept to a

minimum until the Utility is operational

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LEI Utility Governance

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LEI Governance Committee

LEI Utility (SWIFT / DTCC)

DTCC Facilities Management

SWIFTISO Registration Authority

International Oversight

ISO

Operating Model

13

Questions?