Legal Entity Identifier (LEI)

Temenos LEI is a fully automated solution designed for risk and compliance professionals, providing an automated, cost-effective process for the management and validation of Legal Entity Identifiers (LEI).

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Why LEI matters

 

Initially mandated for use in derivatives trade reporting under CFTC rules in the US and EMIR in EU, further mandates such as the “no LEI, no trade” rule under MiFID II have driven global adoption.

The Financial Stability Board has previously stated that global LEI adoption underpins “multiple financial stability objectives”, such as improved risk management in firms, as well as better assessment of micro and macro-prudential risks.

As such, the use of LEI is increasingly mandated for use in international and domestic regulations.

It is therefore essential that banks automate the processes supporting the maintenance and validation of LEIs across multiple regulatory touch points.

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Fully automated solution for LEI management

Centralized capability for the management and validation of LEIs, including, but not limited to, KYC onboarding processes and identification of counterparties during financial securities trade execution.

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LEI directory

Maintenance of a dedicated directory to manage LEIs and associated reference data sourced by banks, to support LEI validation process.

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Connectivity with upstream applications

Independent processing architecture to enable LEI checks to be invoked by multiple upstream Temenos business applications, such as Wealth Front Office and Treasury, where LEI is required to complete pre-trade compliance and regulatory checks.

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Replace manual processes and reduce costs of compliance

Replace inefficiencies associated with manual processing by automating validation of LEI-related processes. This helps you better serve your customers, and reduces the headline costs and risks associated with non-compliance.

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Leading-edge technology

Built on Temenos Core Banking, our solution provides scalable, best-in-class capabilities. This includes advanced, API-first technology which empowers banks to innovate rapidly and connect to ecosystems, and enables developers to build custom connectivity or apps.

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Flexible business rules for automated LEI validation checks

Fully configurable rules enable clients to identify which transactions should be captured under MiFID rules, and retrieve and validate LEIs to identify legal entities and generate national identification.

Key features of Temenos LEI

Provides an efficient and cost-effective process for the management and validation of LEI in KYC onboarding and trade execution including:

  • Dedicated directory to manage LEI codes and associated reference data to support validation processes.
  • Configurable rules engine to define which transactions qualify for LEI checks and identify parties performing different roles.
  • Automated LEI check and validation during transaction execution, guided by the pre-configuration/rules defined in the system.
  • Independent processing architecture enables LEI validation checks to be invoked by upstream business applications.

Fully automated LEI solution

Significantly reduces operational inefficiencies and costs associated with manual processes.

Flexible component-based implementation

Flexible design provides interoperability with multiple Temenos Core Banking applications to support LEI validations in KYC, pre-trade compliance, and regulatory checks.

Fully configurable LEI validation checks

User-defined business rules on which transactions require LEI checks, with each of the parties and the roles they perform in the process identified.

Tax/regulatory solutions for global compliance

Temenos LEI is part of our Regulatory Compliance product suite, providing complementary tax and compliance solutions to support our global client base.