ISO 10962
ISO 10962, known as Classification of Financial Instruments (CFI), is a six-letter-code used in the financial services industry to classify and describe the structure and function of a financial instrument (in the form of security or contract) as part of the instrument reference data. It is an international standard approved by the International Organization for Standardization (ISO). CF
Overview
ISO 10962, known as Classification of Financial Instruments (CFI), is a six-letter-code used in the financial services industry to classify and describe the structure and function of a financial instrument (in the form of security or contract) as part of the instrument reference data. It is an international standard approved by the International Organization for Standardization (ISO). CFI have been required since 1 July 2017. The CFI is attributed to a financial instrument at the time when the financial instrument is issued and when it is allocated an International Securities Identification Number (ISIN) by the respective national numbering agency (NNA). It will normally not change during the life of that instrument. Each of the six letters of the CFI represents a specific characteristic of the financial instrument (e.g. ESVUFB is used to describe a typical registered share). Those capital letters are drawn from the ISO basic Latin alphabet. The first letter of the code is the Category: E for Equity (shares and other instruments of that nature), D for Debt (particularly bonds), C for Collective Investment Vehicles, (i.e. investment funds). The subsequent letters define the type of instrument for that category. The purpose of ISO 10962 is to provide a standard for describing all financial instruments that can be recognized world-wide by all operators and computer systems in the financial markets and banking industries. The Classification of financial instrument Code is used to define and describe financial instruments as a uniform set of codes for all market participants. The code is issued by the members of ANNA, the Association of National Numbering Agencies Archived 2016-07-01 at the Wayback Machine. The group promotes the structure to increase its use by non-governmental market participants.
History of ISO 10962 Modification
Standard was first accepted and published in 1997 as ISO 10962:1997 Its first revision, published in 2001, was ISO 10962:2001 In 2006, FIX Protocol group published a proposal for changes of the standard for Consultation. The standard was subsequently revised and published as ISO 10962:2015. A further revision, ISO 10962:2019, mainly addressed OTC derivatives but was later replaced by ISO 10962:2021, which is the current active version published by ISO in 2021.
Background and Goals of Introduction
Where distinct entities transact it is seen as helpful to establish a common transaction language. The CFI code is meant to provide the most comprehensive information possible, while at the same time maintaining the code manageability, provides a standard for identification of type of instrument and their main high level characteristics, determined by the intrinsic characteristics of the financial instrument, which would be independent of the individual names or conventions of a given country or financial institution. This principle avoids confusion arising from different linguistic usage as well as redundancy, while allowing an objective comparison of the instruments across markets. CFI codes also aim to simplify electronic communication between participants, improve understanding of the characteristics of financial instruments for the investors, and allow securities grouping in a consistent manner for reporting and categorization purposes.
Structure of CFI Code
The first character indicates the highest level of category of the Security. The second character refers to the groups within each category. The next four characters refer to four attributes, that varies between groups. The letter X always means Not Appl./Undefined.
See also
Central Index Key – Identifier issued by the US SEC CUSIP – Code identifying a North American financial security ISO 6166 (ISIN) – Identifier for a securityPages displaying short descriptions of redirect targets ISO 10383 – Standardized identifier of financial marketsPages displaying short descriptions of redirect targets ISO 20022 – Standard for electronic data interchange between financial institutions National Securities Identifying Number (NSIN) – Code identifying a financial instrument FIX Protocol newsletter describing the options and futures CFI codes
External links
Classification of Financial Instruments codes (CFI, norm ISO 10962:2015) ISIN Assistance Detailed description of each CFI level by SIX Financial Information
Wikipedia contributors · ISO 10962 · revision 1366739244 · CC BY-SA 4.0 · Plain text extracted and formatting adapted; tags derived from linked topics.