FISD HOME Financial Information Services Division of Software & Information Industry Association - Your Market Data Business Connectionvisit the SIIA website

Google

web www.fisd.net
MARKET DATA
BUSINESS MANAGEMENT
CONTRACTS
OTHER
ADMINISTRATIVE
MARKET DATA CONTENT
REFERENCE DATA
MARKET DATA
DEFINITION LANGUAGE
FISD WIKI
INDUSTRY ISSUES
MARKET DATA REGULATION
MiFID JOINT
WORKING GROUP
Market Data Training


FIS 2008


FIMA 2008


Inside Market Data


Inside Reference Data
Symbology/Security Indentification

Minutes from UK Securities Market Practice Group

April 12, 2001

Attendees

Gareth Joice (Lehmans), Rajinder Billing (Merrill Lynch) Vaughan Michell (Morgan Stanley), Andrew Douglas (SWIFT), Tim Taylor (SWIFT), Doug Warrington (Citicorp), Les Watkins (HSBC), Mike Richards (one-ten.com)

Definitions

"Place of Trade": Attribute of a trade

  • The exchange where the trade takes place, or ‘OTC’ for OTC trades
  • Required for trade reporting
  • Should include a value for OTC trading

"Place of Settlement": Attribute of a trade

  • The ‘place’ or mechanism where the trade settlesUsed in conjunction with ISIN will provide specific settlement location identification
  • If used in pre-matching would improve success of T+1, especially for sub-agent and CSD
  • Need to add business rules for correct front-end capture re. relationship between a single market issuance and the associated ICSDs and "bridges"

"Agent" or "Sub-Agent": Attribute of a trade

  • Relevant for settlement and depot management purposes but not an attribute of a security

"Settlement System": Attribute of a trade

  • Many securities can be cleared in more than one settlement system

"Register": Attribute of a security

  • The ‘place’ where legal records of security ownership are held
  • Relevant In determining whether re-registration is required and in trader arbitrage??Example: For switching transactions between "listings", no re-registration is required

"Primary Market Listing": Attribute of a security

  • i.e. where (eg country/exchange) the security was originally listed Potential values: exchange MICs, and country ISO values???
  • (this is needed to differentiate the security in the case of dual listing)
  • If initially listed at two exchanges, the lead manager should define which is primary
  • A single issuance of a product can be traded in more than one market (e.g. SIEMENS in Frankfurt and Tradepoint)
    •
"MIC codes"
  • MIC values represent specific exchanges, not local market descriptions

Example Scenario: SIEMENS ordinary shares

Notes from SMPG working party

Example Conclusions (see above table):
  • One ISIN can be shared amongst separate issuances of a single security and so ISIN alone is not unique enough – hence the need for additional parameters
     
  • REGISTER can span different listed issuances, potentially with different issue currencies, and several SEDOL IDs
     
  • SEDOL IDs can be shared by different listed issuances (but is not issued for as large a range of security types as an ISIN)
     
  • Tradepoint exchange, being a pan-regional exchange of the top 300 European stocks, shares the German listed issuance with it’s "Primary Market Listing" in Frankfurt, Germany (NB-Same SEDOL)

ISIN summary

ISIN is currently used by all securities market participants and issued for ever-increasing types of securities. Therefore ISIN remains the "main" security identification number in circulation.ISIN identifies a security uniquely but not at issuance level in the case of multiple listed securities (mainly equities and warrants) - Therefore the following additional parameters are needed to resolve the ambiguity

A MARKET ISSUANCE (OFFERING) in multiple locations will be subject to different tax and/or corporate event treatment
Question: can a combination of ISIN and register define the tax treatment?

REGISTER summary
  • Not sufficient for unique product identification
  • ISIN + REGISTER: Cannot identify specific listed security [or issue currency of each issuance]
  • ISIN + MARKET: Cannot identify specific listed security
Desired treatment by securities investors/investment organisations: For various internal processes, e.g. Reconciliation, security identification can be performed at two distinct levels:
  • ISIN security ID level
  • Listing level

Proposal for security identification:

New definition: "Primary Market Listing", meaning the market in which the security was first listed as specified in future by IPO lead managers

New ISIN "key" to identify a specific security:

Components: (a) ISIN, (b) REGISTER, (c) PRIMARY MARKET LISTING

NB – No discussion has taken place on prospective values for the REGISTER and PRIMARY MARKET LISTING fields(the additional register and primary market listing should probably be separate fields like PSET ??