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

FOW Tradedata to Assist S&P’s CGS with US Liquidity Equity Options Cusip Development

Subscribe to our newsletter

Standard & Poor’s Cusip Global Services (CGS) business has certainly been busy over the last couple of months. Not only has it recently announced a partnership with business entity identification specialist Avox, it has now also agreed to work with UK-based futures and options specialist FOW Tradedata to develop a new Cusip identification system for listed equity options in the US.

The vendor, which is managed by S&P on behalf of the American Bankers Association, will launch the new service by the end of June, says Matthew Bastian, director of product development at S&P. Bastian indicates that the service, which has been dubbed Cusip Options Service, is being developed to expand the vendor’s asset coverage and to address a “longstanding industry need”.

“The feedback we have received from the industry is that a common nine to 12 character identifier is a tremendous step forward in standardisation, and is an essential complement to the Options Clearing Corporation’s (OCC) planned 21 character Options Symbology Initiative (OSI) code,” he explains.

The OCC was selected earlier this year to operate the new symbology allocation system, which is being introduced as an alternative standard to the Options Price Reporting Authority (Opra) code by 2010. Last year, the Financial Information Forum (FIF) estimated that the cost of its introduction would total around US$250 million.

The service is therefore aimed at supporting the industry in moving to these standards and will encompass 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, says Bastian. 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 nine character Cusip and 12 character ISIN for each contract strike price. FOW Tradedata will be the source of the contract data and it will aim to cover all the major options exchanges in the US. 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, indicate the vendors.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Are you making the most of the business-critical structured data stored in your mainframes?

Fewer than 30% of companies think that they can fully tap into their mainframe data even though complete, accurate and real-time data is key to business decision-making, compliance, modernisation and innovation. For many in financial markets, integrating data across the enterprise and making it available and actionable to everyone who needs it is extremely difficult....

BLOG

AI is Helping to Solve New ESG Data Challenges: ESG Briefing Review

The peculiar demands that ESG data integration places on capital markets participants requires powerful techniques that are increasingly being provided through artificial intelligence, A-Team Group’s recent ESG Data and Tech Briefing London heard. From data quality monitoring and analytics to supply chain analysis and investment management, AI-based tools are already offering automated solutions to some...

EVENT

AI in Capital Markets Summit London

Now in its 2nd year, the AI in Capital Markets Summit returns with a focus on the practicalities of onboarding AI enterprise wide for business value creation. Whilst AI offers huge potential to revolutionise capital markets operations many are struggling to move beyond pilot phase to generate substantial value from AI.

GUIDE

MiFID II handbook, third edition – How compliant are you?

Six months after Markets in Financial Instruments Directive II (MiFID II) went live, how compliant is your organisation? If you took a tactical approach to cross the compliance line on January 3, 2018, how are you reviewing and renewing systems to take a more strategic approach and what are the business benefits of doing so?...