Ultimate parent

The ultimate parent is the highest entity in an ownership chain that prepares consolidated accounts covering the others. Group limits add up every issuer or counterparty under the same ultimate parent. Getting the parent wrong splits one exposure into several small ones.

The open reference source is GLEIF’s LEI Level 2 data, which records who owns whom. For each entity with an LEI, it can show the direct and the ultimate accounting consolidating parent. GLEIF has collected these relationships since May 2017 and publishes the data under CC0.

Parent data needs a date and a source, because ownership changes after mergers and disposals. In Acclimetry, the issuer concentration limit and the counterparty concentration limit both offer a group dimension by ultimate parent. See issuer groups and ultimate parents.