State officials urge Trump to revise Biden-era rule tied to Bloomberg

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(The Center Square) – Fifteen state treasurers, auditors and comptrollers are urging President Donald Trump to revise a Biden-era proposed rule they say would disrupt financial markets while financially benefiting Bloomberg L.P., primarily owned by Democratic megadonor Michael Bloomberg.

In a letter dated Dec. 3, the state financial officers asked Trump to direct federal agencies to remove the Financial Instrument Global Identifier, known as FIGI, from a proposed rule issued under the Financial Data Transparency Act. 

The rule, proposed in August 2024, has not yet been finalized. It would require market participants to use FIGI as the exclusive identifier for financial instruments. Bloomberg L.P. created FIGI, and it remains closely tied to the company. 

Financial instrument identifiers are standardized codes used to identify securities and other financial products, letting transactions be processed and settled efficiently across markets.

In the letter, the state officials said the proposed rule would upend the current system. The lawmakers also said it would create unnecessary costs and confusion for market participants.

“The agencies overstepped the bounds of the Financial Data Transparency Act by issuing such an extreme and disruptive proposal despite the law requiring no such selection of an identifier,” the letter says.

The officials noted that the Committee on Uniform Securities Identification Procedures, known as CUSIP, has long been used to identify instruments like municipal securities. They warned that forcing a transition to FIGI could hurt market efficiency and increase the risk of errors.

The letter also expressed worries about Bloomberg L.P.’s influence in the financial services industry and the benefits the company could receive if the government mandates that companies use FIGI.

“All of this raises serious questions about how this rule could further empower Bloomberg L.P., a private company that already maintains extraordinary influence over the financial services industry,” the letter says.

The officials pointed to the timing of political contributions made by Michael Bloomberg, who contributed nearly $20 million to support President Joe Biden’s reelection effort in June 2024. The Biden administration proposed the rule selecting FIGI about two months later. 

The letter cited public reporting that described Bloomberg L.P. as deeply embedded in the financial industry. The elected officials warned that the proposed rule could further strengthen the company’s data dominance. 

O.J. Oleka, CEO of the State Financial Officers Foundation, said the proposal raises many concerns.

“This proposed rule raised red flags from the very beginning,” Oleka said. “The financial officers behind this letter are absolutely right to refuse to let it stand. It was clearly written with the wishes of a partisan mega-donor, not the health of our financial system, in mind.”

Oleka said he hopes the Trump administration will put a stop to it. 

“I hope and trust that President Trump will take necessary action to protect our markets and the prosperity of everyday Americans,” he said. 

The signers of the letter include financial officers from Arizona, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Nebraska, Nevada, Ohio, Oklahoma, Pennsylvania, South Carolina, Utah, and Wyoming. 

The officials asked the administration to remove FIGI from the final rule and allow continued use of existing identifiers.

It remains unclear when federal agencies plan on finalizing the rule.