About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

CUSIP Global Services seeks new owner as regulator requires S&P Global to divest the company to progress merger with IHS Markit

Subscribe to our newsletter

CUSIP Global Services (CGS) is looking for a new owner following the European Commission’s phase one approval of the $44 billion merger of S&P Global and IHS Markit. While the merger will create a financial data and analytics powerhouse large enough to challenge market leaders Bloomberg and the London Stock Exchange Group (LSEG), including Refinitiv, the regulatory approval stipulates that S&P must divest CGS.

These are early days in identifying a buyer for CGS, the provider of securities identifiers that are woven into the fabric of global financial markets, but among those that might step in are big exchange operators such as the London Stock Exchange Group (LSEG) that has made aggressive moves into data through acquisitions including Refinitiv, the FTSE Group and Russell Indexes. Intercontinental Exchange (ICE) could also be in the frame as it builds up its data services division, most recently with extended provision of ESG data.

Alternatively, CGS could be taken in by a regulated organisation in which it can be ringfenced as an entity issuing identifiers on a non-commercial basis. This would be a significant change as the company currently has a steady and recurring revenue stream. Names in the frame here include the likes of DTCC and SWIFT.

Looking into the background of CGS, the American Bankers Association (ABA) introduced the CUSIP system with CGS in 1968 to improve operating efficiencies by developing a standard method of identifying securities. Considering the divestiture of CGS post the merger of S&P Global and IHS Markit, Rob Nichols, ABA president and CEO, said in a joint statement with CGS: “For more than 50 years, the American Bankers Association and S&P Global have worked together as partners to successfully operate the CUSIP system. We will continue to work together to find a suitable buyer for CUSIP Global Services that is capable of onboarding the current staff and operations of CGS and committed to seamlessly delivering CUSIP’s trusted service and reliability.”

Scott Preiss, managing director and global head of CUSIP Global Services, said in the statement: “The dedicated, professional team at CGS will continue to deliver the world-class service, reliability and innovation the global securities market has come to expect of CUSIP for more than 50 years. CUSIP operations will remain unchanged, and we look forward to supporting market participants in every way.”

We’ll update you on the CGS sale just as soon as we have more information to share with you.

Meantime, the S&P Global and IHS Markit merger rumbles on, subject to further review and approval by global regulators and antitrust authorities, and now expected to be closed in the first quarter of 2022.

Subscribe to our newsletter

Related content


Recorded Webinar: Harnessing analytics with trusted and quality data for real-time insight and decision making

Analytics are only as good as the data they analyse, and real-time insight and decision making are only as good as the analytics they are based on, raising questions about how to ensure fundamental data quality and trust in data, data accessibility in real time, and the extent to which this is required in different...


ECB Launches Consultation on Guide Urging Banks to Improve Risk Data Aggregation and Reporting

The European Central Bank (ECB) has launched a public consultation covering its Guide on Effective Risk Data Aggregation and Risk Reporting, noting that ‘adequate capabilities in this area are still the exception, and banks have to improve their risk data aggregation frameworks, also in light of the BCBS principles’. Ultimately, banks are expected to step up...


Buy AND Build: The Future of Capital Markets Technology, London

Buy AND Build: The Future of Capital Markets Technology London on September 21st at Marriott Hotel Canary Wharf London examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.


ESG Handbook 2023

The ESG Handbook 2023 edition is the essential guide to everything you need to know about ESG and how to manage requirements if you work in financial data and technology. Download your free copy to understand: What ESG Covers: The scope and definition of ESG Regulations: The evolution of global regulations, especially in the UK...