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Tim Baker

CEO - Entreprenuer - Innovator - Technologist - FinTech - Big Tech - Markets

Tim Baker is the founder and CEO of Blue-Sky Thinking, a fintech consultancy and investment firm established in 2021. With over 30 years of experience in the financial services sector, he has held senior positions at notable firms such as IEX, UBS, Refinitiv, and Thomson Reuters. His expertise spans various areas including sell-side research, banking, mergers and acquisitions, technology, and data science.123

At Blue-Sky Thinking, Baker focuses on corporate innovation, new business development, and business transformation. He has collaborated with several fintech companies, advising them on product strategy and funding strategies.23 Before founding Blue-Sky Thinking, he played a pivotal role in transforming IEX from a startup to a growth company, significantly increasing its revenues.2

Baker holds a Chartered Financial Analyst (CFA) designation and has an educational background that includes a BSc in Electrical Engineering and an MBA from the University of Bath.2 His work continues to influence the fintech landscape as he aims to democratize access to financial data and services through innovative solutions.

Highlights

Aug 25 · linkedin

The gloves are coming off in the #figi-#cusip faceoff.

In an Op-Ed "Feature , not a bug" published in WatersTechnology.com, Steven Meizanis and Richard Robinson from Open FIGI, were clearly responding to a CUSIP Global Services sponsored editorial published ahead of publication of the #FDTA paper. The FDTA paper from nine US financial regulators, including the Federal Reserve Board, the U.S. Securities and Exchange Commission (SEC), and the U.S. Commodity Futures Trading Commission (CFTC), was cristal clear that they were backing the FIGI in place of the #Cusip as the mandated securities identifier.

Quick summary of the gist of the two editorials:

➡ CUSIP's Position: Argument: CUSIP, a longstanding identifier, ensures market stability and consistency across trading platforms. Concern: Switching to FIGI could disrupt established financial market processes. [also a weak argument about MSFT ticker proliferation which makes NO sense - its a "feature" - see below]

➡ FIGI's Position: Argument: FIGI is an open-source, non-proprietary identifier that offers detailed metadata and broader accessibility. Advantage: Already widely used, FIGI supports a more transparent and granular data environment.

🥊 Why FIGI Gains an Edge: ✅ Open Access: FIGI's open-source nature aligns with current trends towards transparency, and clearly aligns with the goals and spirit of the FDTA. ✅ Granularity: Provides detailed data crucial for regulatory oversight. CGS claims confusion by the granularity argument (MSFT issue), the hierarchical structure of FIGI delivers the best of both worlds: https://lnkd.in/eGXzKdtv

⚖ Regulatory Support: Preferred by multiple U.S. regulatory agencies for its adaptability and compliance with modern data standards.

Conclusion:

FIGI is coming out on top - and CUSIP Global Services are on the ropes - while also defending #antitrust #classaction claims from a group of financial institutions.

My one nagging concern is the cost of switching for the industry as a whole. That said - a period of adoption where issuers and market participants can use either/both the FIGI or the CUSIP for a period could mitigate this: we now know CUSIPs are not protected by copyright (https://lnkd.in/e-dWycmk) and this should spur providers (and FIGI) to offer two way lookup services.

If FactSet, American Bankers Association and S&P Global lose the antitrust case - then this will also pave the way for a new and more fair licensing regime.

HAVE YOUR SAY IN RESPONSE TO THE FDTA PAPER: Due by October 21 - respond here: https://lnkd.in/e4STa26c.

My original note: https://lnkd.in/eiAyWDHK

Aug 7 · linkedin

Thanks Rebecca Natale from WatersTechnology.com for your consistent coverage of all things identifiers! In this excellent piece she provides us with context around the #FDTA guidance to select #FIGI in place of #CUSIP as the #securityidentifier. Full link requires subscription.

Here are the condensed key points:

  1. Regulatory Support: Regulators like the Federal Reserve Board, U.S. Securities and Exchange Commission, and CFTC support FIGI due to its open-license status, promoting transparency.
  2. Debate and Opposition: CUSIP Global Services criticizes FIGI for its lack of fungibility, suggesting potential operational challenges and increased costs for financial markets.
  3. Impact on Practices: The recommendation for FIGI affects regulatory reporting but doesn't change its use in trading, settlement, or clearing, which still use CUSIP or ISIN.
  4. Legal and Market Context: An ongoing antitrust case involving major financial data stakeholders adds complexity to the adoption of new standards.
  5. Technical and Adoption Issues: FIGI is praised for its flexible data model approach but criticized for not providing complete reference data, which might necessitate additional costly data sources.

For my initial linkedin post go here:

https://lnkd.in/eiAyWDHK

https://lnkd.in/eku_fswh

Related Questions

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Tim Baker
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Dobbs Ferry, New York, United States