Cusip Global Services is to introduce a new data feed of US International Securities Identifiers (Isins) tailored specifically to the needs of European market participants following an extended probe by the European Commission into its pricing practices.
Containing limited descriptive data for certain publicly traded US securities, the new data feed, called the US Isin Basic Service, brings to conclusion nearly three years of dialogue between CGS and the EC.
The Commission opened a formal investigation into S&P in January 2009 following complaints by financial groups over the fees charged by the agency's Cusip Global Services arm for US securities identifiers. In May this year, S&P announced that it would cut its prices to a maximum of $15,000 per year to vendors wishing to redistribute codes in Europe and to financial institutions sourcing direct.
Within the next five months, CGS says it will offer the new stripped-down feed on a cost-recovery basis for participants taking it directly from CGS. Market participants will also be able to access the feed from market data vendors without incurring additional charges.
The vendor says larger institutions with concerns about how the new service and its limited descriptive data may impact global securities processing should contact CGS "for clarification or further discussion".