ANNA to Offer Cost-Only ISINs

The Association of National Numbering Agencies is planning to create an ISIN look-up service that will be available on a cost-recovery basis, while deciding against changing its rules to prevent members from charging more than the cost for databasing ISINs.

A task force led by newly-elected ANNA chairman Dan Kuhnel is charged with writing a business case, outlining what the product will look like and determining the cost to both ANNA and users, according to Terry Allison, head of Sedol Masterfile at the London Stock Exchange and vice-chair of ANNA.

Currently, users access a database of ISINs via the Internet. "You have the ability to download—if you have the necessary agreements—ISINs en masse or individually," Allison says. "That is not a cost-recovery service—that has various licenses attached to it. The key difference with the new one is... you probably won't be able to download ISINs en masse. It's a look-up service."

The service will likely include a single click-through agreement in order to protect copyrights but no additional licenses.

The initiative comes in the wake of complaints that the CUSIP Service Bureau has been charging licensing fees to download its codes. Many users complained that it should not be profiting but should offer its data on a cost-recovery basis. The CSB argues that the codes constitute intellectual property and it is justified in charging fees.

The CSB even threatened legal action if ANNA followed the suggestion of the International Organization for Standardization, which develops the ISIN standard. ISO had sent ANNA a draft agreement proposing that numbering agencies only be able to charge on a cost-recovery basis for the licensing of ISIN databases (IMD, May 9). This would reflect the agreements that ISO has with other standards that it develops but which are governed by different registration authorities.

The conflict now appears to have been resolved. Allison says it is not feasible to change ANNA's articles, particularly those related to the intellectual property rights of the individual agencies. ANNA's articles prohibit the association from taking any decisions that could commercially affect its members' business. "ISO are aware that we're not in a position to change the articles," he adds.

And in any case, he says, it's been determined that the CSB is not in conflict with them. "CUSIP have done absolutely nothing wrong with regards to our articles of incorporation," he says.

Moreover, Allison says the CSB is on the task force and participated in last month's general meeting.

"We're trying to all work together to produce a product that answers the market concerns but also fits into our existing regulations," he says.

A CSB spokesperson says its main concern has been protecting intellectual property rights related to databasing. But the new service only allows users to download individual ISINs, and the CSB is happy to support it. "We've never charged—apart for a cost-recovery basis—for individual ISINs. As a member of ANNA, the CUSIP Service Bureau really wants to move forward, and we believe this is the best way."

Allison says the task force is due to report back to ANNA at its next general meeting early December. "We've given ourselves a pretty short timeframe," he says.

But he also says the initiative "is a major step forward [in] that we're all in agreement."

Once the plan is approved by ANNA's members, it will be sent to ISO, which must also approve it.

Dan Kuhnel, who leads the task force, has taken over as chair of ANNA from Niels Hougaard, who decided not to seek re-election after his term expired in June. Kuhnel had chaired the ANNA Service Bureau and represented ANNA for his previous employer Clearstream, but gave up those roles in April when he joined Euroclear (IMD, April 4).