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

A-Team Insight Blogs

Markit and S&P’s Cusip Service Bureau Partner for Universal ID for Loan Market

Following its announcement at the start October that it would be partnering with Standard & Poor’s (S&P), Markit indicates the two vendors are now working together to create a universal identification system for the loan market. The vendor is partnering with S&P’s Cusip Service Bureau with the aim of improving transparency and liquidity in the syndicated loan market and will facilitating the clearing and settlement of trades, says Armins Rusis, executive vice president and global co-head of fixed income at Markit.

“Markit’s partnership with S&P strengthens our drive to introduce a comprehensive, universal identification system for the loan market. The initiative will unite the marketplace and facilitate STP throughout the loan markets,” he elaborates. The vendor therefore hopes the partnership will ensure ease of implementation and will encourage broad acceptance of the new universal identification system in the marketplace.

Jim Taylor, managing director of Cusip Global Services, adds: “Our track record of success in providing numbering services combined with Markit’s high quality loan data and customer relationships made us natural partners on this initiative.”

The identifiers will encompass a new participant identification system for loan market entities, which will be available later in December. It will also cover loan Cusips, which will be expanded in early 2009 to cover a greater number of facilities including links to contract level identifiers, say the vendors. Loan Cusips are issued by Cusip Global Services, managed by S&P on behalf of the American Bankers Association.

Cusip Service Bureau began work on the loan identification space six years ago; when it took the decision to partner with the Loan Syndications and Trading Association (LSTA) to extend the nine digit alphanumeric Cusip codes to US syndicated loans and provide descriptive data. At that point in time, Markit positioned itself in direct competition with the S&P division; however, the vendor has decided against establishing a rival ID service.

The vendor reckons the decision to partner rather than compete will be beneficial to the market by expediting the delivery of a broader solution for the market. Under the agreement, Markit will provide the Cusip Service Bureau with information on borrowers, other participants and contracts in the syndicated loan market, while the Cusip Service Bureau will be issuing the identification codes. However, there has been no decision made thus far on how the new IDs will be branded.

LSTA is also supportive of Markit’s decision to work in collaboration with Cusip Service Bureau, says Bram Smith, interim executive director of the LSTA. He describes the move as a “critical step toward quickly bringing standardisation to the syndicated loan market.”

Steve Ewald, a principal at Bank of America, adds: “Markit and S&P are to be applauded for their collaboration on the global identifier solution. Their joint initiative will promote progress toward a much needed automated end to end settlement processing solution for the syndicated loan product.”

Related content


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,...


GLEIF Details Technologies Underlying Digital Version of LEI, the Verifiable LEI

The Global Legal Entity Identifier Foundation (GLEIF) has published issuance and technical infrastructure models for the verifiable LEI (vLEI) system it introduced back in December 2020. The vLEI is a secure digital attestation of a conventional LEI and is designed to extend the use of the identifier and, ultimately, enable instant and automated identity verification...


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.


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...