International Securities Identification Number (ISIN)
European Union Electricity Market Glossary

 


 

 

 

The International Securities Indentification Number (ISIN) is the recognised global standard for unique identification of financial instruments.

 

The ISIN comprises of a 12-digit alpha-numeric code, of which nine digits are a National Security Identifying Number (NSIN).

 

ISINs are required equally under the European Union MiFID II/MiFIR and EMIR legal mandates.

 

Firms cannot generate the ISIN code themselves, they have to contact with the numbering agencies such as the Association of National Numbering Agencies (ANNA).

 

The generation of the ISIN code could take up to several days to complete.

 

 

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The International Securities Indentification Number (ISO 6166) is the recognized global standard for unique identification of financial instruments.


The ISIN code consists of a total of 12 characters as follows:


The first two characters are taken up by the alpha-2 country code as issued in accordance with the international standard ISO 3166 of the country where the issuer of securities, other than debt securities, is legally registered or in which it has legal domicile. For debt securities, the relevant country is the one of the ISIN-allocating NNA. In the case of depository receipts, such as ADRs, the country code is that of the organisation that issued the receipt,rather than instead of the one that issued the underlying security.


The next nine characters are taken up by the local numbeing code of the security concerned. Where the national number consists of fewer than nine characters, zeros are inserted in front of the number so that the full nine spaces are used.


The final character is a check digit computed according to the modulus 10 “Double-Add-Double” formula.


For ISINs of OTC derivatives, which will be allocated by a single global numbering agency, the initial two digits will use a custom “EZ” code. The ISIN will be generated on a de novo basis, with no reference to previous or other codes.


Who issues the ISIN


In the case of securities, other than debt securities, in locales where a NNA recognised by ANNA operates, this organisation issues the ISIN for securities whose issuer is registered or domiciled in the country where the NNA operates. For debt securities the NNA who issues the ISIN is either one of the international securities clearing organisations or the responsible NNA in accordance with ISO 6166. 

 

 http://www.anna-web.org/standards/isin-iso-6166/


 

 

 

 

 

ISIN under the MiFID II/MiFIR legal framework

 

 

The European Union's MiFID II/MiFIR legal framework mandates as from 3 January 2018 the use of ISINs to identify OTC derivatives:

 

- tradable on a European trading venues (ToTV), and

 

- those with underlying asset tradable on a European trading venue (uToTV).

 

The reporting obligations for these instruments affect, in particular:

 

- trading venues, and

 

- systematic internalisers (SIs).

 

 

 

 

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Questions and Answers on MiFID II and MiFIR transparency topics, 5 April 2017, ESMA70-872942901-35 

 

  

 

numbering blue  Question 5 [Last update: 03/04/2017]


Does an ISIN need to be included for pre-trade quote publication?

 

Answer 5

 

Pre-trade transparency information should allow identifying unequivocally the financial instrument to which the information published refers. ISINs are one of the available ways to ensure the unequivocal identification of a financial instrument. However, ESMA recognises that ISINs may not always be available when providing a quote. Trading venues and systematic internalisers are free to use other ways for identifying instruments for pre-trade transparency purposes as long as the financial instrument can be unequivocally identified.

 

 

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  Questions and Answers on MiFIR data reporting, 7 July 2017, ESMA70-1861941480-56

 

 

 

 

numbering blue  Question 1 [Last update: 02/02/2017]


What ISINs, CFI codes and FISNs can be used to identify financial instruments?

 

Answer 1

 

For the purpose of reporting reference data under the requirements of MiFIR Article 27, ISO 6166 ISINs, ISO 10962 CFI codes and ISO 18774 FISNs issued by the relevant National Numbering Agency (NNA) should be used. For further information please refer to the following link: http://www.anna-web.org/standards/about-identification-standards/.

 

 

numbering blue   Question 2 [Last update: 02/02/2017]


By when do ISINs have to be obtained for financial instruments submission of reference data for which is triggered by an order, quote or trade taking place?

 

Answer 2

 

For financial instruments for which submission of reference data is triggered by an order, quote or trade taking place, the ISINs have to be allocated in time to be included in the submission of reference data required under Article 2 of RTS 2316.

 

 

numbering blue   Question 3 [Last update: 02/02/2017]


How should Field 26 (Underlying instrument code) be populated in the case of a futures contract on sovereign bonds?

 

Answer 3

 

In case of a futures contract on sovereign bonds, field 26 (Underlying instrument code) should be populated with the ISIN of the cheapest-to-deliver bond. If this is unknown, this field should be populated with the ISIN of any of the bonds issued by the issuer. This concept also applies to transaction reports under Article 26 MIFIR for OTC derivatives where the underlying deliverable bond can be chosen from several bonds issued by the same issuer.

 

 

 

 

 

 

ISIN under the EMIR Regulation

 

 

Under EMIR Level 3 validations the ISIN codes or the UPIs, as endorsed by ESMA, are required to be reported for trades in each product (also for each constituent of basket underliers) as from 1 November 2017.

 

 

 

Commission Implementing Regulation No 1247/2012 of 19 December 2012 laying down implementing technical standards with regard to the format and frequency of trade reports to trade repositories 

 

as amended by

 

Commission Implementing Regulation (EU) 2017/105 of 19 October 2016 amending Implementing Regulation (EU) No 1247/2012 laying down implementing technical standards with regard to the format and frequency of trade reports to trade repositories according to Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories

 

Article 4(5) - (9)

 

5. The derivative shall be identified in Field 6 of Table 2 of the Annex using the following, where available: 


 

(a) an ISO 6166 International Securities Identification Number (ISIN) code or an Alternative Instrument Identifier code (AII), as applicable, until the date of application of the delegated act adopted by the Commission pursuant to Article 27(3) of Regulation (EU) No 600/2014 of the European Parliament and of the Council. 


 

(b) an ISIN from the date of application of the delegated act adopted by the Commission pursuant to Article 27(3) of Regulation (EU) No 600/2014. 
Where an AII code is used, the complete AII code shall be used.

 

6. The complete AII code referred to in paragraph 5 shall be the result of the concatenation of the following six elements:


(a) ISO 10383 Market Identifier Code (MIC) of the trading venue where the derivative is traded, specified using 4 alphanumeric characters;


(b) Code, which is assigned by the trading venue, uniquely associated with a particular underlying instrument and settlement type and other characteristics of the contract, specified using up to 12 alphanumeric characters;


(c) single character identifying whether the instrument is an option or a future, specified as "O" where it is an option and as "F" where it is a future;


(d) single character identifying whether the option is a put or a call, specified as "P" where it is a put option and as "C" where it is a call option; where the instrument has been identified as a future in accordance with point (c), it shall be specified as "F";


(e) exercise date or maturity date of a derivative contract specified in ISO 8601 YYYY-MM-DD standard;


(f) the strike price of an option, specified using up to 19 digits including up to five decimals without any leading or trailing zeros. A decimal point shall be used as the decimal separator. Negative values are not allowed. Where the instrument is a future, the strike price shall be populated with zero.

 

7. The derivative shall be classified in Field 4 of Table 2 of the Annex using an ISO 10692 Classification of Financial Instrument (CFI) code for products identified through an ISO 6166 ISIN code or an AII code.

 

8. Derivatives for which an ISO 6166 ISIN code or an AII code are not available shall be classified by means of a designated code. That code shall be:
(a) unique;
(b) neutral;
(c) reliable;
(d) open source;
(e) scalable;
(f) accessible;
(g) available at a reasonable cost basis;
(h) subject to an appropriate governance framework.

 

9. Until the code referred to in paragraph 8 is endorsed by ESMA, derivatives for which an ISO 6166 ISIN code or an AII code are not available shall be classified using an ISO 10692 CFI code.

 

 

 

 

 

IMG 0744

    Documentation    



 

 

 

Questions and Answers on MiFIR data reporting, 7 July 2017, ESMA70-1861941480-56

 

ESMA's Opinion OTC derivatives traded on a trading venue (TOTV), 22 May 2017, ESMA70-156-117 

 

Derivatives Service Bureau, Consultation Paper – Phase 2, 19th April 2017

 

DSB, Fee Model Consultation Paper, FINAL REPORT, 28 February 2017

 

ANNA-DSB, Fee Model Consultation Paper, 9 January 2017

 

Commission Implementing Regulation No 1247/2012 of 19 December 2012 laying down implementing technical standards with regard to the format and frequency of trade reports to trade repositories, Article 4(5) - (9)

 

Commission Implementing Regulation (EU) 2017/105 of 19 October 2016 amending Implementing Regulation (EU) No 1247/2012 laying down implementing technical standards with regard to the format and frequency of trade reports to trade repositories according to Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories

 

 

 

 

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    Links    

 

 

 

 

 

ISIN website

 

Association of National Numbering Agencies (ANNA)

 

 

 

 

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Last Updated on Friday, 22 September 2017 21:31
 

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