Standard & Poor’s has launched a reference data service that gives the issuer and issue coverage behind each CLIP code.
The product was launched in response to the needs of Rabobank to be able to identify all the issuers and issues associated with each entity scrubbed in Markit RED. Standard & Poor’s CLIP codes link a business entity to an associated issue. Reference Entity Link is only available to Markit RED subscribers.
Reference Entity Link gives Rabobank access to more than 100,000 issuer and issue CUSIP and CINS numbers for the entities in the Markit RED database. It enables users to link a specific CUSIP to a particular business entity; identify the credit exposure of each CLIP entity; and increase operational efficiency by eliminating manual entity- to issuer- to issue cross-referencing.
The Markit RED database is the market standard for confirming reference entities and their reference obligation “pairs.” Governed by an advisory board of representatives from seven major financial institutions, it aims to provide accurate, audited legal reference names for approximately 1,800 entities, covering 2,500 issues. Markit RED recently announced their 100th subscriber.
Standard & Poor’s offers Reference Entity Link as an optional service. Reference Entity Link is updated weekly and delivered via FTP. It may also be fully integrated into in-house trading, risk management and other systems. Reference Entity Link is an extremely valuable product considering the fact that nine-digit CLIP codes are mandatory for dealers matching on DTCC.
“Once again we have listened carefully to the needs of our clients and developed a product which takes the CLIP service one step further,” says Darren Purcell, Associate Director for European Securities classifications at Standard & Poor’s. “We are delighted to combine Standard & Poor’s CUSIP numbers and CLIP codes with the Markit RED database to provide the best service we can for Rabobank.”