Identification Infrastructures and the Capitalization of Data in the Development of Data-Driven Regulation
Yuval Millo, Nikiforos S. Panourgias, Markos Zachariadis · 2021
Abstract This chapter discusses the establishment of a global identification infrastructure to improve the regulation of financial markets. The Global Legal Entity Identifier System (GLEIS), was developed to enable financial regulators to trace the owners of financial assets and liabilities, which was revealed as a problem by the global financial crisis of 2008. This chapter focuses on one of the key controversies that arose as part of the development of GLEIS—the issue of data quality. The chapter uses the GLEIS case to explain how differing views among infrastructure participants about the development of a complex data-driven regulatory system are reconciled. It shows that establishing such a system involves the turning of publicly available data into valuable assets in a process the chapter calls ‘capitalization through certification’ and argue that this process is relevant to broader debates about the use of business intelligence and analytics tools and techniques for regulatory purposes.