Centrálny Depozitár cenných papierov SR, a.s.

Updated securities codes shall facilitate decision making for the investors

18.09.2017

In compliance with updated standards ISO 10962 and ISO 18774, from this year’s July, Centrálny depozitár cenných papierov SR, a.s. (CDCP) is allocating changed CFI and FISN codes to all active securities registered in the Slovak Republic. More exact and complex information included in the codes shall facilitate and speed up access to important information on securities for participants in the global capital market and shall increase their credibility.

Globalisation of the capital markets requires common language which will allow all market participants to understand the terms uniformly. In the international trade is important mainly uniform indicating of the securities and related financial instruments. „In connection with increase of cross-border trades with securities arisen situation when information on securities became the key aspect in investment decision making of the capital market participant. Inability to obtain information evoked a need of consistent and uniform classification of securities.“ states Ing. Iveta Macková, Head of Issues Department.

For given reasons were developed the international ISO standards which implemented unified codes for identification of securities issued in all countries around the world. Nowadays three different codes are used for this purpose: ISIN – basic identifier of the security issue, FISN – short name of the security and CFI – code for more detail classification of securities. As the international trade in securities started to grow, it turned out that these codes are not exact enough. This problem has been solved by latest updates of the international ISO standards on the identification codes CFI and FISN. Amended identifiers bring unified, more accurate and also more detailed defining of individual securities and financial instruments. The codes are providing all participants of the global market with more complex information on securities without before required analysis.

CFI – more detailed information on securities
„As worldwide capital market is an open system in which new types of securities are created, the market participants require for their investment decisions as much information as possible,“ stated Ing. Roman Kucharik from CDCP. 

In compliance with updated version of the standard ISO 10962 from the year 2015, CFI code extends possibilities to identify securities more closely by unified defining of some of their attributes and at the same time gives space to provide additional information, which the original standard did not enabled.

FISN – unified definition of security name
„Individual national markets often categorise the securities differently despite it concerns securities with identical attributes or, in contrary, differences are not sufficiently identified, what can be confusing for the market participants,“ explains Ing. Kucharik.

The original standard ISO 18774 didn’t provide fixed identification of securities parameters, what could lead to their insufficient identification. For stated reason a list of official unified abbreviations has been approved as an amendment to the standard in the year 2017, which allows unified and exact identification of basic parameters and also provides for higher amount of parameters.

Easier and faster deciding
Thanks to updated codes the investors and securities brokers shall get, except information on maturity date, also details like fixed interest rate, method how the security is secured, what can be important information for deciding on planned investment. The parties in trade can find the key for accurate decoding of numeric codes in relevant updated standards ISO 10962 for CFI codes, and ISO 18774 for FISN.

From 3 July 2017 Centrálny depozitár cenných papierov SR, a.s. as a participant in the European platform Target 2-Securities (T2S) and member of the Association of National Numbering Agencies (ANNA) allocates CFI and FISN codes automatically during allocation of the ISIN code, in compliance with updated ISO standards to all active securities issued in the Slovak Republic. These become for the foreign investors more readable and trustful financial instrument.

Definitions:
The Association of National Numbering Agencies (ANNA) –  is the Registration Authority authorised by the International Organization for Standardisation (ISO) to implement the International Securities Instrument Number (ISIN). The association unifies numbering of securities and provides for information on securities in majority of countries in the world, whereby it support worldwide investing to these financial instruments.

ISIN code is basic identifier of issue of securities and financial instruments allocated in compliance with the international standard ISO 6166 – Securities and related financial instruments – International securities identification numbering system developed by the ISO.

CFI code is a six figure alphabetic code allowing dividing the securities to consistent and unified groups, what facilitates detailed identification of securities and related financial instruments. It is allocated in compliance with ISO standard 10962 – Securities and related financial instruments – Classification of Financial Instruments (CFI codes).

FISN code identifies more closely short name of the securities. It is allocated in compliance with the ISO standard 18774 – Securities and related financial instruments – Financial Instrument Short Name (FISN) in order to ensure consistent and unified approach to standardisation of the short name of the issuer and description of securities. It has a maximum length of 35 alphanumeric characters as defined in the ISO/IEC 8859-1.

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