Press Release: CGS : CUSIP Global Services Statement on Proposed Data Standards for the Financial Data Transparency Act

NORWALK, Conn., Aug. 01, 2024 (GLOBE NEWSWIRE) -- In our view, the data standards recently proposed by the FDIC and CFPB, and under consideration by the U.S. Treasury and other federal agencies (agencies), to implement the provisions for the Financial Data Transparency Act of 2022 (FDTA), contain a fatal flaw that undermines the intent of the law and risks creating a costly and distracting operational challenge for financial market participants. By proposing to establish the FIGI as the only identifier of financial instruments, the agencies have endorsed a non-fungible, error-prone and less widely used taxonomy as the required standard for reporting the identity of financial instruments. Even worse, by deliberately excluding CUSIP from being used as an option, the agencies are unnecessarily forcing market participants to change the way they report their data and how they maintain critical financial data internally.