28 July 2016
Find out more

European Commission accuses S&P of monopoly abuse over Isin fees

19 November 2009  |  12925 views  |  0 Financial numbers

The European Commission has accused Standard & Poor's of unfair pricing of fees charged for stock data codes and abusing its dominant position as the sole-appointed National Numbering Agency (NNA) for US International Securities Identification Numbers (Isins).

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 a formal written statement of objection, the EC says: "The Commission's preliminary conclusion is that S&P is abusing this monopoly position by enforcing the payment of licence fees for the use of US Isins by (a) banks and other financial services providers in the EEA and (b) information service providers in the EEA."

The finding is based on a comparison with the charging policy of other NNAs that either do not charge any fees at all or do so only on the basis of the distribution cost as opposed to usage. According to the Commission, S&P does not incur any costs for the distribution of US Isins which are disseminated to financial services firms by third party vendors such as Thomson Reuters or Bloomberg.

S&P has eight weeks to reply to the charges which, if confirmed, will force it to cease its current business practice and possibly pay a fine.

In a statement to the Reuters news agency, S&P says: "Cusip Global Services disagrees with the European Commission's preliminary assessment We are reviewing the Commission's position and its implications for CGS's data service business and investment in Europe."

The Commission stepped up its investigation into pricing for securities codes earlier this month when it announced a probe into the fees charged by Thomson Reuters for the information group's proprietary RIC codes.

This followed an earlier decision by Bloomberg to launch a new Website where industry participants can freely search for, access and re-use identifiers developed for the Bloomberg Professional terminal and enterprise data products.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Europe opens anti-trust probe into Reuters Instrument Codes

Europe opens anti-trust probe into Reuters Instrument Codes

10 November 2009  |  7227 views  |  0 comments
Bloomberg smashes proprietary identifier market

Bloomberg smashes proprietary identifier market

04 November 2009  |  14330 views  |  1 comments
EC initiates antitrust case against S&P

EC initiates antitrust case against S&P

13 January 2009  |  5238 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit VocaLink.comFind out moreVisit www.abe-eba.eu

Top topics

Most viewed Most shared
satelliteContactless Bitcoin startup Plutus Tap &am...
9549 views comments | 9 tweets | 4 linkedin
Apps crush internet for UK banking loginsApps crush internet for UK banking logins
8549 views comments | 19 tweets | 25 linkedin
Telefonica Germany launches Fidor-backed mobile banking serviceTelefonica Germany launches Fidor-backed m...
6733 views comments | 16 tweets | 20 linkedin
UK and South Korea build 'fintech bridge'UK and South Korea build 'fintech bridge'
5931 views comments | 13 tweets | 14 linkedin
hands typing furiouslyManaging Big Data After Brexit
5756 views 0 | 5 tweets | 8 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job