Securities & Issuer ID

mapping

Securities Reference Data Project

August 2020

Fintech Open Source Foundation finos.org

Introduction

Fintech Open Source Foundation finos.org

FINOS: Securities Reference Data Project
Origin Launched in 2018, led by FINOS member Recent participants*

There are a range of trade identifiers used across financial services (ISIN, CUSIP, SEDOL, LEI, FIGI, RIC, BBID and many more) that
serve a number of purposes, from validating the integrity of a security to providing common identifiers used during trading and
Background
settlement. The majority are either fully or partially “closed" codes, although there are some initiatives that are partially or fully
open, like FIGI and OpenCorporates.

● No single code covers all securities, while individual securities may be represented by multiple identifiers and the granularity
of coverage at entity v.s corporate level also varies. This often necessitates costly and error prone mapping across identifiers.
The extent of the problem is greater in some asset classes than others and certainly more prominent within the OTC market.
Challenge
● The existence of regionally focused bodies/companies responsible for issuing the identifiers and, in come cases, requiring
licenses to access them contributes to the problem, minimizing the possibility of consolidation onto one identifier, causing
delays and reducing transparency, all of which impacts market efficiency and contributes to trade breaks and errors.

1. Securities & Issuer ID Mapping

Current
focus
2. Currency Data Standard

* Firms that have participated in Security Reference Data project meetings over the past two months. For a complete list of participants, see wiki.finos.org

Fintech Open Source Foundation finos.org 3

Securities & Issuer
ID Mapping

Fintech Open Source Foundation finos.org

Executive Summary
What? Why? How?

● Create open datasets for industry focusing on ● Every financial company has this problem ● Recognize that not all data is free
the common problems of security and ● The effort to maintain and map data is ● Structure design to encourage data
identity mapping non-alpha accretive and is inefficient providers to contribute
● Make finding a match, consuming data, and ● Contract Negotiation is typically protracted for ● Simplify Contracting (Std T&Cs)
correcting it, if necessary, easy access to data ● Build on what came before – don’t reinvent:
● Provide a neutral reference implementation FINOS will reuse OpenFIGI and PermID
● Build a platform for adding value ● Incorporate Workflow management

FINO Open Datasets FINOS: Workflows and Entitlements

Fintech Open Source Foundation finos.org 5

Executive Summary (cont'd)
Create Two Open Datasets Provide API Services Support Data Integrity

Security Master Business Workflows

Sophisticated Search & Query
FINOS “ID” – Open FIGI For Data Correction/Contribution

Entity Master
Participant Contribution Validation
FINOS “ID” - PermID

Usage and Entitlement

Data is Always Removes Market

entitled Inefficiencies

Contributor Consumer
Incentives Incentives
Data can be Encourages
Licensed or Open Quality

Neutral Community Solution

Fintech Open Source Foundation finos.org 6

Executive Summary (cont'd)
Create Two Open Datasets Provide Open Sourced Access Moderate Data Integrity

Datasets API Moderate Operational Processes

● Open Entity Master - OEM ● Describing OEM and OSM ● Use case dependent
● Open Security Master - OSM ● Maintaining Column contents ● Participant believes another mapping value
● OSM will refer to OEM for all entities ● Adding Columns is wrong
● Any participant/vendor may add their own ● Entitlements to Columns ● Modification of reference data
“mapping” columns and participate in ● Matching/Searching and Retrieving data ● Workflow/processes to arbitrate and change
process workflows to amend data against OIM and OSM with set/subset of the other mapping and data columns
● Mapping columns may be generally available parameters ● Workflow engages community to validate
(Open), licensable from the participant Returns data with confidence level – ● Results in rejection/new version
and/or, be entitled Implement ML reference algo Workflow for “Entitlement” and Contracts
● Mapping columns are identifiers to ‘find’ ● File uploads of mapping columns
reference data ● Entitlements will use Identity based on OEM
● FinOS algorithms identify highest confidence Adopt Iteratively
matches as set of columns Reference Implementation
● Participants may obfuscate their entries as Iterative Approach, Mapping Column
necessary/required ● Host a reference implementation of the by Column, Participant by Participant,
● FinOS identifiers will be based on OpenFIGI datasets, APIs Improving Reference data Integrity
and PermID ● Introduce Workflows
● Data is versioned and uses Alloy Models

Fintech Open Source Foundation finos.org 7

 Macro Overview
● Sell Side
● Buy Side
#1 #2 #3 #n ● Exchanges
● Data Vendors
● Industry Utils

Files & API

Submission and action entitlements

Multi-Lateral Approval Workflows For Impactful Data Updates

Open Identity Master Open Security Master

Identity Mapping Identity Reference Data Security Mapping (Symbology) Security Reference Data

API Access,
Files, REST, ODBC
Access To Data

Smart Algos
PermID LEI Client Client FIGI BBG Nomura LSE

Party IDs

Fintech Open Source Foundation finos.org 8

Macro Example: Identity & Symbology Mapping
OSM – Security ID Example
Entity IDs
SECID OEM ID ISIN SEDOL RIC BBG
PermID LEI Client FIGI
PermID

OEM – Issuer ID Example

f
Search - API

Given these attributes, return the

columns I am entitled to, ranked by
matched confidence.
NNA LSE Refinitiv Bloomberg FM1 Nomura JPM GS Exchanges
#1…#n
API Example High Confidence
Mappings to Market
Free License License License License Entitled Entitled Entitled Free Free
IDs (Respects
Licensing)

Fintech Open Source Foundation finos.org 9

Macro Example: Symbology Practicalities
FINOS Bloomberg Refinitiv Bank
● Each contributor links their data with
“OpenFigi” identifier
Reference Data
● Consumers are able to join to any data
that they are entitled to by the
providers

● In Theory the same approach can be

taken for Reference data items

● The utility will manage the enforcing

of entitlements across

● FINOS provides a high confidence set

of columns based on ISIN, CUSIP,
SEDOL, RIC, BBG based on algorithms
implemented for best match.

These respect licensing and are in

addition to underlying contributors

Fintech Open Source Foundation finos.org 10

Use cases

Fintech Open Source Foundation finos.org

Use Case #1: Incorrect Sedol/ ISIN on Equities
Bloomberg Refinitiv
Script Name FIGI PERM Id
ISIN SEDOL ISIN SEDOL
XXX (NYSE) B1 P1 I1 S2 I2 S1

YYY(NYSE) B2 P2 I2 S1 I1 S2

Existing Entries in the FINOS Cloud store

Finos ID FIGI PERM Id ISIN SEDOL CUSIP Contributor

F1 B1 P1 I1 S2 C1 Alpha Inc

F2 B2 P2 I2 S1 C2 Beta Inc

FIGI PERM Id ISIN SEDOL CUSIP Contributor

B2 P2 I2 S2 C2 Gamma Inc

Incoming entry from a contributor Gamma Inc

Fintech Open Source Foundation finos.org 12

Questions?

data-tech-sec-ref@finos.org
help@finos.org

Fintech Open Source Foundation finos.org

Appendix

Fintech Open Source Foundation finos.org

The Foundation at a glance..
The Fintech Open Source Foundation (FINOS) is an independent, non-profit membership
organization whose purpose is to accelerate collaboration and innovation in financial
services through the adoption of Open Source software, standards and best practices.

Over 30 member organizations and 300+ contributors collaborate to develop software,

deliver standards and drive collaboration in data and data technologies, cloud services, the
financial desktop and more.

FINOS also runs an Open Source Readiness initiative to help financial firms adopt
best-practice policies, processes, and technology for open source compliance.

FINOS hosts the Open Source Strategy Forum, the first and only Open Source conference
solely focused on financial services and regulated industries.

Fintech Open Source Foundation finos.org 15

FINOS Community by the Numbers 20
Active Open Source Projects
and Working Groups
PLATINUM GOLD SILVER

19
Incubating Open Source
Projects and Working Groups

300+
Contributors

34
Member Organizations

Fintech Open Source Foundation finos.github.io finos.org/members finos.org

How can
JOIN you
OUR engage with FINOS?
COMMUNITY!

CONSUME CONTRIBUTE BECOME A

MEMBER
finos.github.io Issues/PRs to FINOS Projects
finos.org/knowledge-base A new idea or existing Project Join our current Members
www.finos.org/get-involved Integrated Your Technology in ODP Join the Board of Directors
twitter.com/finosfoundation Host an event with FINOS Enjoy Membership Benefits
Join a Project meeting or Mailing list

Fintech
FintechOpen Source
Open Source Foundation
Foundation finos.org
finos.org 17
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