The obvious goal for reference data is to ensure that there is a common understanding of all the data attributes and their respective data structures – particularly within security master files. Master files need to anticipate potential trades. Securities need to be set up well before they trade -- because “just in time processing” doesn’t offer the luxury of correcting missing or inaccurate data. If the data was consistent, there would be less need for manual intervention. Fewer manual operations mean less risk and less expense. And with the movement toward shorter settlement cycles, more automation and compatible data is required to achieve high matching rates.

FISD members have been focusing on security identification and numbering schemes because they are an integral component of reference data. FISD is a member of the ISIN User Group and an active participant with both the Association of National Numbering Agencies (ANNA) and the new ANNA Service Bureau.

The core problem is that there are too many numbers but none that uniquely identify all attributes required for precision. However, the objectives are fairly straight forward. The industry needs identification numbers to be accurate to facilitate the objectives of automation and risk management. As such, all instruments that are traded should have a number and that number should be accurate, timely, well maintained, precise and available/usable on reasonable terms and conditions – and satisfy the full lifecycle of a trade, from decision making to execution, through settlement, reporting, valuation and position keeping.