CUSIP Global Service (CGS), managed by Standard & Poor's on behalf of the American Bankers Association and Avox Limited, a majority-owned subsidiary of the Deutsche Borse Group, announced the launch of the CABRE Directory Service. The service is a combined effort by CGS and Avox to provide a universal identification system for global business entities. The CABRE Directory uses a new standard code developed by CGS and Avox that identifies Issuers, Obligors and Counterparties on a global basis.
"CABRE" is an acronym for CUSIP Avox Business Reference Entity identifier and has been designed to address market need for the lack an accepted universal identification system.
"With regulatory oversight continuing to focus on single name exposure and the need to identify issuers, counterparties and obligors, interest in the CABRE has increased since CGS and Avox announced their partnership last year. The financial industry recognizes CGS' extensive classification expertise and the value of Avox's validation processes and methodology," says Scott Preiss, VP for CUSIP Global Services in New York. "Given their client-driven system of maintaining global entity data, Avox is an ideal partner to augment our time-tested system of unique issuer and obligor identification."
The CABRE has been designed as a 10-character code that contains the 2-character ISO domicile code based on the location of the entity and embeds the CUSIP Issuer number, when available. The service will be offered to global market participants in a bulk-file format. This initial offering contains CABREs, Avox IDs and location data for over 250,000 entities from around the world and across all industry classes. The goal for CGS and Avox is to identify every institution involved in the lifecycle of a financial instrument.
Ken Price, Chief Executive Officer of Avox stated, "The launch of the CABRE Directory coupled with the data verification expertise within Avox create the foundation of a system that will grow exponentially over the next few years. The availability of a CABRE for each entity location will ultimately help our clients manage diverse areas of their organizations, such as financial controls, risk management, anti-money laundering and operations. Â With this partnership, we can leverage the community of user firms that provide intelligence about changes to business entities taking place every day in the market."
CUSIP Global Services and Avox support the development of an ISO standard that seeks to develop a common language for global identification of entities but see a near-term need to replace the array of proprietary codes that are currently used by counterparties.