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New York

Member since

2011

Allan's blog archive

2016 (1) 2012 (1)

Allan Grody

President at Financial InterGroup

Message Posts: 2 Comments: 5

Blogs

Fixing the Infrastructure of Finance

14 Jan 2016

In Elizabeth Lumley's Blog on Jan 6th "Fix the Infrastructure of Finance or Die" she compares the broken rail system to similarities in the infrastructure of finance. To follow the railroad analogy, if you can imagine a global rail system with different track widths, that is what we have now in the bedrock of the global financial system....

Financial InterGroup's Global Identification LEI paper

24 Apr 2012

Our paper "GLOBAL IDENTIFICATION STANDARDS FOR COUNTERPARTIES AND OTHER FINANCIAL MARKET PARTICIPANTS" was recently sent to regulators, financial industry members and financial market participants. It was also issued as a proposal to the G20’s Financial Stability Board, and to members of their Expert Regulatory Panel and Industry Advisor...

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Allan is Commenting on

Chicago - where the Big Data grows

WHERE IS THE OFF RAMP ON THE “SPEED and SPEND” HIGHWAY It would seem that taken to its logical conclusion the “industry” would continue to spend huge amounts of money speeding up its acquisition and access to market, order, trade and execution data. I wonder for what purpose? Surely each firm’s increment of speed or data acquisition advantage is met with another’s step up in spend rate to one-up and gain temporary advantage. This speed and spend frenzy is overlaid on VERY important capital and contract market infrastructure that is the life blood of the global economy. The transactions that flow through its communication pipes and computers allow capital to seek its best uses while supporting the techniques of risk management that is supposed to mitigate the risk of each transaction and/or a portfolio of such transactions. It seems to me that as an industry we are failing to understand that it is mainly our customers that pay for the costs of maintaining the speed and spend highway. We will surely lose their trust when the whole thing goes “pop” AGAIN. Then where are we? Let’s get real, get our “industry” leadership to get us to a better place before the regulators take us AGAIN to the woodshed, perhaps this time to permanent purgatory!

30 Mar 2013 Reply Read article

FSB sets out LEI scope and timetable

The FSB’s statement today on a going forward framework for the LEI initiative reaffirms both their seriousness and their diligence in confronting one of the most serious gaps in the global financial system’s infrastructure. The lack of a global identification system for financial market participants and the products they own, trade and process has inhibited risk aggregation for observing the contagion of systemic risk. It has cost billions annually in unnecessary infrastructure costs at global financial institutions. It has spawned numerous financial market utilities whose primary existence is purposed on resolving ambiguities in data identification and in reconciling data quality issues. Its absence has been a factor in headline grabbing operational risk events, in regulators’ inability to see that which they are mandated to oversee, and in preventing the fulfillment of the financial industry’s long sought vision of straight-through-processing. My firm and the group of global technology leaders and other stakeholders that we have assembled for accommodating the FSB’s LEI requirements looks forward to working collaboratively with all stakeholders toward a successful first implementation of a globally federated identification system for financial market participants. See: Global Identification Standards for Counterparties and Other Financial Market Participants ... Journal of Risk Management in Financial Institutions - Special Issue on Counterparty Risk, Vol. 5, No. 2 at http://ssrn.com/abstract=2016874 --Allan D. Grody, President, FInancial InterGroup Holdings Ltd.

09 Jun 2012 Reply Read article

Who's on first, What's on second Identity Standards

Gentlemen - words like "nirvana" and its equivalent "boiling the ocean" are remnants left over from the can't do crowd. We have regulatory compulsion (or will have if the G20 stays the course) for identifying uniquely, unambiguouusly and universally every financial market participant (the LEI) and the products they own,trade and process (the UPI). 2-3 million of these, 80 million of those - not very big or troublesome at all! What is troublesome is the thought that it will be just another number - we cannot let that happen. For example we have alreday organized a consortium to tackle the STP problem and to make sure that the transition from multiple and proprietary business entity identifiers is short lived. For example the same federated servers that support the distributed LEI utility in our proposal to the FSB and the CFTC will support mapping software to resove proprietary codes into LEI's and LEI's into proprietary codes - all in the network. See our proposal by clicking on www.ssrn.com/abstract=2016874

23 May 2012 Reply Read article

LEI - competition or global monopoly?

Gary: GS1 is a global non-profit federation. In the US it operates as a 501 c 6 non-for-profit organization. It has only one purpose in life - to administer a globally unique number. The number is freely available. It allows interoperability and leaves in place all business interests to create added value services. Not unlike the english language, which allows everyone to use it freely but also be able to create commercial models around poetry, prose and great works of literature. Proprietary numbers have a place as long as the commercial provider shows added value to its clients and links to the GS1 Registry (this is to be accomplished through regulatory compulsion, the one new thing that will actually allow a globally unique, non-proprietary numbering convention to occurr) . Thereafter, interoperability is assured, both for regulators and the financial institutions who, either through their data vendors or directly, will link up and map to the new LEI. Legacy systems can slowly be changed to use the LEI directly as systems are decomissioned over time.

31 May 2011 Reply Read article