The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Bloomberg Bows to Pressure to Maintain Support for BUID Indefinitely

The migration plans of data giant Bloomberg to gradually move users from its BUID identifier to its new Bloomberg Global ID (BBGID), which is at the heart of its open symbology initiative, have hit a roadblock. Users have exerted pressure on the vendor to step back from the initial migration timeline and to maintain support for the BUID indefinitely, and the vendor has agreed, for now at least.

The enforced migration from one identifier to another, with a defined shut off date for the BUID, was considered to be too restrictive for financial institutions struggling with a whole host of new regulatory requirements. Industry groups such as the Information Providers User Group (IPUG) and individual financial institutions have therefore been feeding this information back to the vendor, along with a whole host of other suggestions, such as the inclusion of Bsym in FOW TRADEdata’s service Xymbology.

The BBGID is a 12 digit alphanumerical security identifier that is maintained on the Bloomberg database and is automatically assigned to each new security that is added to the vendor’s system. According to the vendor, there will be more than 852 billion potential number available, all of which are being made available via the vendor’s Bloomberg Open Symbology (Bsym) website at no charge to users.

In a whitepaper on the Bsym initiative, Bloomberg states what it considers to be the benefits of its approach: “Eliminating the need to remove proprietary IDs and re-map securities will greatly simplify the steps needed to migrate between market data platforms and trading systems. Availability of a central symbology reference will facilitate mapping between users’ internal systems and create opportunities for integration and automation of the global enterprise.”

The BBGID is considered by some in the market to be the jewel in the crown of the data vendor’s Bsym initiative and a potential rival to the Reuters Instrument Code (RIC) in the market. One reference data exec within a large financial institution recently told Reference Data Review there is potential for the BBGID to “blow the RIC out of the water” due to the level of its specificity and granularity.

The vendor’s ambitions for the identifier could be boosted by the current regulatory drive for greater standardisation within the instrument and entity data space. Regulators are keen to be able to more closely track systemic risk and the standardisation of these reference data items across the market could significantly aid this endeavour (as proved by the discussions around the Office of Financial Research).

With the aim of proving its openness, Bloomberg also signed an agreement in April this year with NYSE Euronext to include its Bsym codes on NYSE’s data feed products globally. NYSE Euronext has initially added Bloomberg Bsym codes to its OpenBook product and will then move on to distribute Bsym along with its standard security identifiers for New York Stock Exchange-listed companies across all its data products.

The Bloomberg whitepaper on the details of the Bsym initiative is available to download here.

Related content

WEBINAR

Recorded Webinar: Entity identification and client lifecycle management – How financial institutions can drive $4 billion in cost savings

A new model in Legal Entity Identifier (LEI) issuance has created significant opportunities for financial institutions to capitalise on their KYC and AML due diligence. By becoming Validation Agents and obtaining LEIs on behalf of their clients, financial institutions can enhance their client onboarding experience, streamline their internal operations, and open the door to new,...

BLOG

SETL Launches Verafide Digital Credentials Platform for KYC, Other Verification Challenges

Blockchain operator SETL’s Verafide subsidiary has launched its open-source platform for verifying digital credentials and identification on the SETL enterprise blockchain, allowing issuers, holders and verifiers to set up and maintain a digital credentials ecosystem. The Verafide platform is aimed at helping firms fulfill their KYC obligations, adopt more seamless and transparent customer onboarding processes...

EVENT

Data Management Summit Virtual

The Data Management Summit Virtual brings together the global data management community to share lessons learned, best practice guidance and latest innovations to emerge from the recent crisis. Hear from leading data practitioners and innovators from the UK, US and Europe who will share insights into how they are pushing the boundaries with data to deliver value with flexible but resilient data driven strategies.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...