CUSIP raises the gold bar
19 September 2016 New York
Image: Shutterstock
CUSIP Global Services (CGS) has paired up with the Delaware Depository to apply its security identifiers used for tracking and trading in the equities and fixed-income markets to gold bars and other precious metals.
Creating security identifiers is intended to standardise the process of trading and tracking precious metals within investor portfolios. It will be assigned to 93 precious metal product types in the Delaware Depository.
According to CUSIP, the standardised identities will complement the existing proprietary, internal tracking codes that have been used to track and manage client assets.
Matthew Bastian, director for market, business and product development at CGS, said: “Though it is arguably one of the world’s oldest asset classes, gold is one of the last to receive CUSIP identification. As markets and trading and portfolio management mechanisms become increasingly electronic, the need for a universal standard is growing quickly.”
Jon Potts, managing director of the Delaware Depository, said: “The introduction of the CUSIP ID into the precious metals market represents an enormous step forward in the pursuit of a more modern, efficient, and transparent marketplace.”
He added: “We see this critical first step as an exciting opportunity to take a leadership role in the precious metals industry and look forward to further collaboration with CGS to bring their rich experience in identifier standards to bear for the precious metals market.”
Creating security identifiers is intended to standardise the process of trading and tracking precious metals within investor portfolios. It will be assigned to 93 precious metal product types in the Delaware Depository.
According to CUSIP, the standardised identities will complement the existing proprietary, internal tracking codes that have been used to track and manage client assets.
Matthew Bastian, director for market, business and product development at CGS, said: “Though it is arguably one of the world’s oldest asset classes, gold is one of the last to receive CUSIP identification. As markets and trading and portfolio management mechanisms become increasingly electronic, the need for a universal standard is growing quickly.”
Jon Potts, managing director of the Delaware Depository, said: “The introduction of the CUSIP ID into the precious metals market represents an enormous step forward in the pursuit of a more modern, efficient, and transparent marketplace.”
He added: “We see this critical first step as an exciting opportunity to take a leadership role in the precious metals industry and look forward to further collaboration with CGS to bring their rich experience in identifier standards to bear for the precious metals market.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
