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News and updates on LEI standard progress and development

As a follow up on G20 acceptance in Los Cabos in July 2012 and the Financial Stability Board guidelines and recommendations of the Legal Entity Identifier  LEI, we will regularly update this post with news and article to provide an overview of  LEI standard progress and development.

First Published  13.07.2012 , Last Update 27.09.2012

Filed under: Data Management, Data Vendor, Reference Data, Standards, , , , , , , , , , , , , , , , , , , ,

Expanding Global Identifiers in Complex Assets and Other Areas

In the post-credit crisis financial services industry, risk management, compliance and transparency have emerged as focus points for review with provision of accurate and timely data recognised as a critical element of success. Fundamental to data provision is the accurate identification of both financial instruments and counterparties – without which you cannot truly measure your performance or exposure.

Rapid growth in derivatives and securitised debt instruments played a central role in the credit crisis. In the aftermath of the crisis, the use of alternative asset classes has continued to grow. In order to ensure that an individual firm’s exposure through such complex instruments can be accurately measured, and therefore, managed, that firm must be able to correctly identify the securities and the entities that they are investing in.

This can only be done through the use of unique identifiers. But it is a well known fact that there is no single identifier capable of uniquely identifying securities or entities globally. While there are countries with identifier schemas, or certain asset classes such as equities that are well covered, there are many regions, asset classes, and markets that do not have a robust mechanism for identifying securities and entities. Despite significant effort, the industry has not been able to progress a standardised approach to this problem.

Is there another way? Can commercial initiatives and innovation through partnerships succeed where standards bodies have so far failed?

We examine the industry requirements and complexities inherent in the application of unique identifiers in three key areas: Business Entity Identifiers, US Listed Options and Syndicated Loans and review the collaborative approach taken by Standard & Poor’s CUSIP Global Services to develop innovative and comprehensive industry solutions.

Click below to download the free 12-page white paper from CUSIP Global Services now.

Source:A-TEAM 08.09.2010

Filed under: Data Management, Reference Data, Standards, , , , , , , ,

Cusip Global Services taps Fow Tradedata for development of US options service

Cusip Global Services (CGS), managed by Standard & Poor’s on behalf of the American Bankers Association, today announced that Fow Tradedata, a United Kingdom-based financial information provider specializing in futures and options products, will aid in the development of a Cusip identification system for listed equity options in the U.S.

CGS plans to launch its CUSIP Options Service by the end of June, at which time there will be approximately one million option CUSIPs with accompanying ISINs and related data elements. Market participants who wish to receive the CUSIP Options Service will be able to do so directly from CGS or via a properly licensed vendor. FOW TRADEdata’s Xymbology product, which maps option contracts to market data and proprietary vendor codes, will also contain option CUSIPs and ISINs.

Once operational, the CUSIP Options Service will generate a 9-character CUSIP and 12-character ISIN for each contract strike price. FOW TRADEdata will be the source of the contract data and it will cover all the major options exchanges in the U.S. The CUSIP Options Service will contain unique identifiers that will not conflict with other CUSIPs. Moreover, the use of the letter C (call) and P (put) in the third position of the CUSIP will be reserved for Options CUSIPs.

“CUSIP Global Services (CGS) is pleased to work with FOW TRADEdata to expand our asset class coverage, and more importantly, to address a long-standing industry need,” said Matthew Bastian, Director, Product Development at Standard & Poor’s. “The Options Service represents another leap ahead for CGS in its mission to help market participants uniquely identify financial instruments.

To both collect feedback and to keep market participants apprised of this development, CGS outlined its plans for a CUSIP Options Service before several industry groups in the last year, including the Financial Information Forum (FIF) and the SIFMA Operations Committee, as well as the CUSIP Agency Board of Trustees.

“The feedback we have received from the industry is that a common nine to twelve character identifier is a tremendous step forward in standardization, and is an essential complement to the OCC’s planned 21-character OSI code,” continued Bastian.

Source: CUSIP S&P, 06.05.2009

Filed under: Data Management, Market Data, News, Reference Data, Risk Management, Standards, , , , , , ,