Creating A Linchpin For Financial Data: Toward A Universal Legal Entity Identifier
Source: Federal Reserve Board
The financial industry runs on information and data. Although financial data are made up of innumerable complex and idiosyncratic components, a fundamental building block for analysis is reference data about companies, organizations, and firms (henceforth referred to collectively as entities). Reference data might include a number of things, but an essential component is a systematic structure or code that uniquely identifies entities and their legal relationships with parent companies and subsidiaries capable of tracking changes in these relationships over time and quickly incorporating information on newly created entities.