On Wednesday, CUSIP Global Services, which develops identifiers for securities worldwide, announced the introduction of a distinctive entity identifier for the syndicated corporate loan market, valued at approximately $5trn.
CUSIP-based entity identifier to boost transparency and system integration of the syndicated corporate loan market
This CUSIP Entity Identifier (CEI) is a unique 10-character code for each legal entity with a corporate loan. CUSIP Global Services developed the code in collaboration with the Loan Syndications and Trading Association (LSTA) and Versana, an industry-backed data and technology company.
The CEI will provide transparent insights into the underlying legal entities involved in the corporate loan asset class and includes private credit. This means one can trace relevant digital notices, transactions, and position-level specifics by using the CEI on Versana’s platform.
Experts type this system as a breakthrough in the digital connection of agents, lenders, and service providers in the market. It is foreseen that the CEI will promote straight-through processing while supplying unmatched visibility into corporate loan holdings. The senior vice president and global head of CUSIP Global Services, Scott Preiss, stated:
We foresee enhancing workflow efficiency and improving data transparency through the CEI. By introducing a fully open and freely available taxonomy for identifying the legal entities connected to each loan product we are bringing much-needed flexibility that will help streamline and remove unknowns from the syndicated loan market.
Lee Shaiman Source: LinkedIn
Lee Shaiman, the Executive Director of LSTA, echoed the view and commented:
By embracing this technological advance, the loan industry can use digital workflows to eliminate time-consuming, manual reviews and cross-checks in the trading and settlement process.
