CGS License Fees
License fees for CGS’s commercial database products apply to both direct customers (those who subscribe to an appropriate licensed product directly from CGS) and indirect customers (those who obtain CGS data from authorized data vendors or information providers).
Fees described below do not apply to authorized data vendors or information providers, whose fees for their own usage and redistribution of CGS data are calculated using a different pricing model.
The first step in the CGS licensing process is to complete and return a CUSIP Use of Service Statement (CUSIP UOSS). This allows CGS to understand how a potential customer plans on using the data contained within CGS’s commercial databases.
1. Number of CGS Identifiers
2. Number of Lines of Business
3. Number of Regions
Fee Model Example 1
A client databases 4,500 securities, has one Business Line (asset management) and operates in one Region (U.S.): annual fee = $20,000.
|Business Line 1||Total $U.S.|
Fee Model Example 2
A client databases 9,500 securities, has two Business Lines (asset management and custody) and operates in two Regions (U.S. and U.K.): annual fee = $90,000.
|Business Line 1||Business Line 2||Total $U.S.|
Fee Model Example 3
A client databases over 40,000 securities and has three Business Lines (asset management, clearing and custody) and operates in three Regions (U.S., U.K. and Asia Pacific): annual fee = $398,125
|Business Line 1||Business Line 2||Business Line 3||Total $U.S.|
Fee Model Tables
|Under 500 Securities|
|Up to 2,500 Securities||Business Line 1||Business Line 2||Business Line 3||Business Line 4|
|Up to 5,000 Securities||Business Line 1||Business Line 2||Business Line 3||Business Line 4|
|Up to 10,000 Securities||Business Line 1||Business Line 2||Business Line 3||Business Line 4|
|Up to 20,000 Securities||Business Line 1||Business Line 2||Business Line 3||Business Line 4|
|Up to 30,000 Securities||Business Line 1||Business Line 2||Business Line 3||Business Line 4|
|Up to 40,000 Securities||Business Line 1||Business Line 2||Business Line 3||Business Line 4|
|Greater than 40,000 Securities||Business Line 1||Business Line 2||Business Line 3||Business Line 4|
The fees applicable to direct and indirect customers are the same and are based on the number of:
CGS identifiers databased (includes CUSIP, CGS CINS and CGS ISINs)
The count should include all CGS Identifiers (except defunct and matured) regardless of where they are situated, to which a subscriber needs access in order to operate any part of their business. This definition applies whether the database is maintained directly by the subscriber or is maintained by a third party on behalf of, or for the benefit of, a subscriber.
For example: Subscriber may maintain a database (internal or outsourced) of 5,000 CGS Identifiers which reflects only those in which it holds, or at one time held, a position. However, if subscriber needs access to a pool of 30,000 CGS Identifiers in order to select those 5,000, it is the pool of 30,000 that should be counted.
Conversely, if a subscriber receives a datafeed that includes 100,000 CGS Identifiers, but the pool from which they select CGS Identifiers to database is limited to only 10,000, then the count should be 10,000.
Business Lines where CGS data is used
Includes, but is not limited to: Accounting Firm, Asset Management, Audit/Consulting Firm, Bank – Trust Services, Bank – Other Services, Broker-Dealer, Insurance Company, Investment Banking, Open & Closed End Funds, Regulator/Government, and Treasury/Pension.
Regions in which a subscriber has access to or usage of a CGS database
Geographic groupings that include, but are not limited to: North America, South America, Europe, Asia-Pacific, Africa and the Middle East.
Additionally, the single fee covers the use of CUSIP, CGS CINS and CGS ISINs.
Establishing the Base Fee
To establish the base fee, CGS looks at the largest operating unit of the customer, i.e. the first Business Line and Region.
- If there is a second Business Line or Region, the additional fee equals 50% of the base fee for a Business Line and/or Region.
- If there is a third or fourth Business Line or Region, the additional fee equals 75% of the base fee for a Business Lines and/or Region.
- For 2012, a maximum of only four Business Lines and three Regions/Countries will be counted to calculate total fees.
- Combinations of Business Lines and/or Regions yield further modifications to the base fee.
See the Fee Model Tables for more information.
- No license fee required if the number of CGS identifiers databased by the client is fewer than 500.
- Once an indirect customer enters into a license agreement with CGS, the fee entitles that customer to access CGS data via multiple authorized data vendors or information providers without paying additional fees.
- There is no fee or license requirement imposed on customers who only read/view CGS data via authorized vendors’ providers display terminals without download capability.
- Complimentary CGS services may be available with a CGS license; contact your Sales Representative for details.
- Final determination of fees is at the judgment of CGS and consideration will be given to aspects of a customer’s profile including, but not limited to:
- AUM for asset managers or fund managers
- US customers operating in one region of the country (e.g. the Midwest)
- Other equitable factors in the judgment of CGS.
- Fees are valid for the initial term of the customer’s subscription agreement, but may change on each anniversary date thereafter.
- For 2012, annual fees typically will not exceed $455,000.
- Since 2009, annual fees have typically not exceeded $455,000. Unique circumstances for large, global financial institutions (multiple business lines, a distribution component to the business, etc.) may result in higher fees.
CGS Licensing Policies FAQs
When does a firm need to enter into a license agreement with CGS?
A license agreement with CGS is required when an end-user wishes to obtain access to an electronic download, datafeed or similar capability to retrieve CGS Data in bulk format of CUSIP standard numbers, CUSIP standard descriptions, CGS ISIN, CGS CINs numbers, and other information about financial instruments - either directly from CGS or indirectly through one of CGS's many Authorized Distributors. Authorized Distributors are data vendors or information providers who have entered into distribution agreements with CGS to distribute or otherwise make available CGS Data to end-user customers. A license agreement with CGS is also required when an end-user's database that contains CUSIP Data is updated, maintained and/or operated by an Authorized Distributor, regardless of whether such end-user's database is located internally at the end-user's site or maintained and/or updated on the end-user's behalf at the Authorized Distributors' site or other third-party site.
How are license fees calculated?
CGS charges fair, reasonable and non-discriminatory license fees for providing the convenience and functionality of access to information originating from an accurate, up-to-date and dynamic commercial database compiled and maintained by CGS. License fees are based upon an end-user customer's own particular access to and usage of the CGS Data. End-user Customers are asked to complete a Use of Service Statement that allows CGS to determine the appropriate fees for that end-user customer. CGS's Use of Service Statement helps achieve the objective of ensuring that end-user customers are treated in a fair, reasonable and non-discriminatory fashion and that license fees are always directly associated with access to and usage of CGS Data.
Please explain CGS’s basic licensing structure.
Like other suppliers of financial information, CGS distributes information from its various commercial databases directly to end-user customers, as well as indirectly through Authorized Distributors. While many of CGS's end-user customers elect to receive access to CGS's Data directly from CGS via a specific CGS database product, other end-user customers elect to receive CGS Data through one or more Authorized Distributors. Both methods of distribution provide a high degree of functionality and convenience to end-user customers, and allow end-user customers to choose their preferred method of delivery.
CGS's end-user customers fall into two basic categories. The first group of end-user customers subscribe to a particular CGS commercial database service directly from CGS (a "direct customer"). The second group of end-user customers elects to receive CGS Data through one or more Authorized Distributors ("indirect customers"). CGS provides Authorized Distributors with the right to incorporate CGS Data and make such CGS Data available to their own customers as part of such Authorized Distributor’s own products.
Why isn’t CGS Data available for free from CGS or its Authorized Distributors?
CGS has made, and continues to make, significant investments in developing and updating its commercial databases and delivering its proprietary data in formats and frequencies valued in the marketplace. CGS Data contains data selected and arranged by CGS through the application of methods and standards of judgment used and developed through the expenditure of considerable work, time and money. License fees cover the expense of maintaining the CGS Data and provide incentives to innovate and upgrade the data products that CGS offers.
The value of CGS Data is not only the CUSIP identifier itself but also the linked descriptive data that enables the financial marketplace to uniquely identify a particular security. End-users customers can therefore rely on the provenance of data originating from CGS, which helps them run their operations with reliability.
The American Bankers Association is the owner of all intellectual property rights to the CUSIP system, including all intellectual property rights in and to CGS's various commercial databases.
Are all end-users of CGS data required to enter into a license agreement with CGS and pay a fee to CGS?
CGS requires a license agreement with the end-user only when such end-user obtains access to CGS identifiers and related descriptive data either: (a) directly from CGS via a particular CUSIP product or service, or (b) indirectly from an Authorized Distributor in downloadable, machine readable or similar bulk format.
End- users who obtain display-only access to CGS Data by virtue of an Authorized Distributor's on-line screen display either through a terminal or website (as distinguished from receipt of the CGS Data from the Authorized Distributor in downloadable, bulk or machine readable format), do not have to enter into a license agreement with CGS or pay any license fees to CGS.
Additionally, CGS waives the license fees for an end-user customer who receives access to CGS Data from an Authorized Distributor in machine readable or downloadable format (e.g., a datafeed or other bulk delivery method) but maintains fewer than 500 securities containing CGS Data in its internal database.
Can firms take CGS Data from public sources and create their own database without signing a license agreement with CGS?
CGS Data is publicly available in some offering documents and from other sources. Firms can elect to collect this information and store it in their internal databases for non-commercial use, provided that the source of such information permitted the reproduction and use of such information. However, CGS's experience has been that the CGS data generally has not come from publicly available sources but rather from other sources such as a CGS Authorized Distributor or through improperly scraping websites of CGS customers with valid CGS’ licenses. Most end-user customers of CGS Data prefer to enter into a license agreement with CGS for authorized use and to enjoy the benefits of the integrity and functionality of downloadable, timely and accurate data (either from CGS directly or from an Authorized Distributor).
How does a license agreement work when an end-user customer receives CGS data from several Authorized Distributors?
It is important to note that the end-user customer only pays CGS once as it only needs one license agreement with CGS. Once a firm has signed a license agreement with CGS for access to and usage of certain CGS Data, they can obtain such CGS Data through multiple Authorized Distributors at no additional charge and without entering into another license agreement with CGS. This is an efficient and fair distribution model as the end-user customer only pays once for access to and use of the CGS Data.
Why do both Authorized Distributors and indirect End-user customers have to pay license fees to CGS?
CGS charges license fees to indirect end-user customers based upon that end-user's own particular access to and usage of CGS Data as described in its Use of Service Statement. This is to be distinguished from the usage of the CGS Data by Authorized Distributors. CGS's license fees applicable to Authorized Distributors cover the Authorized Distributor's right to (a) access and use CGS's commercial databases for internal purposes, (b) incorporate the CGS d=Data in their own databases and their own services, and (c) distribute the CGS Data as part of an Authorized Distributor's own services to their own customers. Therefore, the Authorized Distributor is not charged for the end-user's particular access to and usage of the CGS Data.
CGS does not charge both Authorized Distributors and indirect end-user Customers for the same service. If the Authorized Distributor makes CGS Data available in read-only access (computer or website display) to its own customer, the fees paid by the Authorized Distributor to CGS may factor in that access, but the end-user customer is not charged separately by CGS. On the other hand, if the end-user customer is obtaining a download or datafeed of CGS Data from the Authorized Distributor (which acts as a substitute for CGS's direct datafeed products), then the end-user customer is charged a license fee by CGS, but the Authorized Distributor is not so charged for this particular use.
Thus, indirect end-user customers and Authorized Distributors derive separate benefit from their access to and usage of CGS Data and CGS charges them according to such access and usage.