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A Strategic Standpoint on Taxonomy Maintenance

Taxonomy Data

A legal hierarchy is the legal structure of an entity from the ultimate parent through to its subsidiaries. eClerx team validates existing legal hierarchies in client systems using approved validation sources and updates any changes on these resulting from Corporate Actions. This in turn is used as a base to update the credit hierarchies in a tree view of the entities manifesting the credit recourse to each other. The process involves identification of duplicates in existing hierarchies to mitigate risk associated with dupe credit lines. The database is also updated with details on country of organization, legal form, headquarter, type of financial activity and other attributes for all entities which form a part of the hierarchy.

eClerx provides financial research reports on companies or securities for disclosure of potential conflicts of interest by SEC, FINRA, FATCA and other foreign regulatory bodies.


  • ​Several business units enter the data into the system which results in duplication of data, incorrect or insufficient data, deviation in data standards
  • Incorrect or incomplete information present in the system with no reference files making it difficult to validate the information
  • Insufficient data or no data on the approved internet sources resulting in unsatisfactory records in system
  • Case to case differences preventing application of standard procedures for all entities leading to dependency on the team’s decision making skills
  • Non availability of required information in English for certain entities


  • eClerx provides a centralized processing unit for all regions to avoid duplication of data
  • Standard procedures followed to save all proofs of validation on the client online repository for future references
  • Short term projects to undertake data cleansing activity for existing database
  • Language experts to process information available in non-English text


  • A centralized team for all regions ensures consistency and standardization of data updated on client system
  • Short term projects undertaken to perform data cleansing activities ensure a check on the entities which belong to countries where OFAC restrictions have been applied and provides a database to check entities’ compliance with AML restrictions