EC Surveys National Numbering Agencies on ISIN Issuance and Database Maintenance

Brussels - The European Commission (EC), which is investigating if the fees being charged by Standard & Poor's for databasing International Security Identification Numbers (ISINs) based on Cusip numbers are in breach of EU competition law, has requested information from national numbering agencies on issuance of security numbers and database operations, Inside Reference Data has learned.

Inside Reference Data has obtained a copy of a questionnaire aimed at a national numbering agency with a deadline for reply in May. The questions, divided into two sections, are focused on the process of issuing a securities identification number and the number of ISINs issued each year, as well as the importance of a database and the types of information contained in addition to the numbers.

London-based Dan Kuhnel, chairman of the Association of National Numbering Agencies (Anna), says he was aware of the survey and believes that "some of the European national numbering agencies have received a survey focusing on how they perform their day-to-day ISIN allocation functions." The database maintenance questions could be seen as important as this has been one of the justifications for ISIN licensing, he explains.

In April, Anna was also contacted by the EC and asked to provide information. "Anna received its own questions about the resolutions that had been taken in past general meetings in relation to the ISIN licensing matter where the majority agreed they were not in support of ISIN licensing," says Kuhnel. In addition, the EC asked Anna to provide information on member assignment fees, which Anna had collected in early 2009.

The EC launched formal proceedings against S&P on January 12 after having received a complaint from three European trade associations, European Fund and Asset Managemet Association, Information Providers User Group and Swiss Information Providers User Group, on July 16, 2008.

The EC declined to comment when contacted by Inside Reference Data.