s event is all about finding these benefits in the various areas of finance in which you are active. only by convincing market participants of the benefits of the lei, will they be encouraged to contribute to its more widespread use. it is clear that the lei offers many benefits and has widespread support. some of you have been working with the lei from the outset and are strong advocates. however, it still has far to go to meet the g20 ’ s objective. the fsb conducted a peer review last year to assess the current adoption and use of the lei. it came up with four sets of recommendations to support the broader use of the lei. firstly, fsb jurisdictions should require the use of leis for the identification of legal entities in data reported to trade repositories. this is a strategy that is already being pursued in europe for derivatives data and starting from april also for data on securities financing transactions. jurisdictions should also consider requiring the use and timely renewal of the lei in reporting frameworks for a wider set of financial market participants and infrastructures than is now the case. there are many ways jurisdictions can promote the further adoption of the lei. they should strive to make full use of the lei so they can reap all the benefits. the fsb will monitor the implementation of this recommendation as part of its regular implementation monitoring activities. the second set of recommendations is aimed at the fsb itself. the fsb should explore the potential role of the lei in different areas of activity. work is currently underway to explore the use of lei in the resolution of financial institutions and on financial innovation issues, for example. the fsb will work with standard - setting and industry bodies to facilitate lei adoption. as well as group entities and major counterparties of global financial institutions, the lei should also be adopted by ccps ’ clearing members to support the timely analysis of risk exposures and interdependencies. the fsb, working with other standard setters and the industry, will also promote the inclusion of lei in payment messages. it will also consider the benefits of the lei in cross - border payments. the implementation of the iso 20022 standard will be a major step forward in this respect. thirdly, other relevant standard - setting bodies and international organizations such as the basel committee and the imf should review ways to further embed or enhance references to the lei in their work, which could facilitate the implementation of relevant lei uses for both authorities and market participants. the fourth set of recommendations

to address this problem and in 2012, the g20 endorsed the lei system as a global standard. the objective of the g20 is the “ global adoption of the lei to support authorities and market participants in identifying and managing financial risks ”. since it was introduced, over 1. 5 million entities in over 200 countries have registered for an lei. the lei has seen widespread adoption in several financial markets most notably in the over - the - counter derivatives markets. it is also used increasingly in the issuance of debt and equity securities in jurisdictions. in other areas, the uptake of the lei is less widespread, and the financial stability board ( fsb ) continues to monitor this progress. in line with the g20 recommendations, the fsb is a strong supporter for a broader uptake of the lei. we see many benefits not just from a regulatory perspective. the lei has helped to make the financial system safer. authorities can use it for many different regulatory purposes. they can for example use the lei to monitor financial risk, to keep track of financial entities ’ aggregate risk exposure, for resolution planning. a good example is embedding the lei in the data on derivative contracts reported by trade repositories. this is very helpful in giving supervisors a clear picture of what is going on. the lei has also led to many improvements in the quality of data, and therefore in the quality of data analysis. this opens up possibilities for research and data aggregation. it also improves the accuracy of data reporting, and makes data more internationally comparable. the lei is now being used in international stress tests. it is invaluable in helping to understand interconnectedness. it has improved our understanding of the build - up of risk across multiple jurisdictions. these benefits are not only available to regulators and other authorities. obviously, these advantages are also available to the wider financial industry and academics. looking ahead, i am convinced the lei will play an increasingly important role in anti - money laundering processes. banks in europe are investing heavily in ways to combat illegal money flows. this begins with knowing your customer. the lei not only significantly reduces the time and administrative burden required for customer onboarding. it also ensures firms are able to clearly and unequivocally know their customers, and to keep track of their financial identity. not to mention the role the lei can play in removing unnecessary complexity from business transactions. there are many other benefits. and these will multiply as new applications are discovered and developed. today ’