CUSIP Global Services (CGS) today announced plans to make its CABRE business entity identifier database freely available to CUSIP customers, effective 1 December. The new standard code, known as a CABRE (CUSIP Avox Business Reference Entity identifier), was created through a strategic partnership between CGS and Avox Limited, a DTCC company. The CABRE database is currently generated and maintained for more than 335,000 issuers, obligors and counterparties on a global basis.
By providing free access to CGS customers – a group that includes over 1,000 financial firms worldwide –the CABRE initiative addresses the growing market need for a universally accepted business entity identification system.
“Accurate, well-maintained reference data on securities and legal entities is a growing priority for the financial services industry,” said Scott Preiss, vice president, CUSIP Global Services. “With the unprecedented focus by global market participants – including the regulatory community – on a common language for business entity identification, we recognise the need to provide transparency and unrestricted access to such a standard. Free access to the CABRE database represents the latest reinvestment by CGS in a mission-critical, industry-wide requirement.”
The CABRE has been designed as a 10-character code that is available as an adjunct to existing services, and is also available to global market participants in a variety of distribution options, including portfolio, bulk-file and web-based applications. The format also lends itself to a collaborative industry model in the event there is coalescence around an emerging ISO standards scheme, such as the Issuer & Guarantor Identifier (IGI or ISO/CD 16372) or an updated version of the Business Identifier Code (BIC or ISO 9362).
“Identifiers are at the core of every financial transaction and, increasingly, they have become a fundamental component of the risk management process,” said Jim Taylor, managing director, CUSIP Global Services. “Individual companies will always have proprietary identifiers within their own organisations, but it is now essential that the industry and regulators have access to a standard to which everyone can cross-reference. This is foundational to efficient global markets.”
The strategic partnership between CGS and DTCC/Avox is part of an industry-wide effort by CGS to collaborate with market asset experts to quickly and cost-effectively create industry standard identifiers for complex asset classes. Over the past two years, this effort has led to the creation of unique identifiers for listed equity options, syndicated bank loans and hedge funds. DTCC and CGS have worked together in the past to bring unique instrument identification to the capital markets for commercial paper, medium term notes, institutional CD’s and other money market instruments. Moreover, DTCC has had a standing representative on the CUSIP Agency Board of Trustees for more than a decade, helping fuel the exponential growth of asset classes and geographic regions covered by the CUSIP system during that time.
“As we have done with recent asset class expansions and associated reinvestments, CGS has worked closely with our industry board of trustees to augment our understanding of the market’s entity identification requirements”, said C Diane Poole, senior vice president, data management and policy at the American Bankers Association. “This unique insight from senior industry leaders has been instrumental in making today’s announcement a reality.”