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

DSB Managing Director Emma Kalliomaki Outlines Issues in Progressing the UPI

As the Derivatives Service Bureau’s (DSB’s) first round of industry consultation on fee principles for the Unique Product Identifier (UPI) plays out, we talked to Emma Kalliomaki, managing director of ANNA and the DSB, about some of the issues involved in getting the UPI up, running and ready for its Q3 2022 release. Early conversations...

EVENT

TradingTech Summit London

The TradingTech Summit in London brings together European senior-level decision makers in trading technology, electronic execution and trading architecture to discuss how firms can use high performance technologies to optimise trading in the new regulatory environment.

GUIDE

Risk & Compliance

The current financial climate has meant that risk management and compliance requirements are never far from the minds of the boards of financial institutions. In order to meet the slew of regulations on the horizon, firms are being compelled to invest in their systems in order to cope with the new requirements. Data management is...