International Securities Identification Number (ISIN)
What is an ISIN?
An ISIN is a unique identification code that is assigned to each new security (financial instrument) as it is produced. Financial Instruments in this context includes both derivatives that are traded on exchange or on a trading venue, or derivatives which are traded Over the Counter (OTC).
Relative to 360T, as defined under the EU Markets in Financial Instruments Directive (MiFID II), ISIN’s will be provided for:
- Foreign Exchange Derivatives (excludes Spot FX): and,
ISIN Codes are also applied to many other asset classes such as equities, credit and rates – though these are not traded on 360T.
Note 1: ISIN codes are not generated for Money Market (MM) products (Loans and Deposits) and, therefore, 360T will not provide ISINs for MM instruments even though these are tradeable on 360T.
Note 2: ISIN codes for FX Swap instruments should be available by the end of 2017. As of January 2018 therefore, 360T intends to provide ISIN codes for FX Swap instruments on a ‘per leg’ basis and on ‘FX Swap’ level.
Note 3: For a block trade consisting of multiple outright instrument legs of varying maturities, 360T will assign an ISIN code on a ‘per leg’ basis.
Who generates an ISIN?
ISIN’s are produced by ANNA, (Association of national Numbering Agencies – http://www.anna-web.org/). ANNA, assigns an ISIN (unique identification code), to each new security, as it is issued. The ISIN depends on a variety of parameters such as Instrument, Currency, Tenor, etc.
The ISIN code contains a total of 12 characters consisting of:
- alpha-2 country code
- local numbering code (9 digits)
- final check digit (1 digit), as defined in ISO Standard 6166.
For Example: EURUSD FX Forward with a settlement date of October 6th 2019, traded on 360T in Germany. This trade will have the following attributes:
- alpha-2 country code = DE
- local numbering code = 123456789
- final check digit = 0
Hence, the ISIN code for the above transaction would be: DE1234567890
What is an ISIN used for?
In accordance with regulations and in particular in relation to EU matters the ISIN is used for:
• Transaction Reporting
• Post Trade Transparency
• Record Keeping
Who will provide the ISIN?
360T as the operator of a Trading Venue and an OTC platform will provide the ISIN. 360T will maintain a local database of pre-existing ISIN codes to avoid latency delivery issues. As there are several parameters that influence the generation of the ISIN, there may be instances where a code does not exist in the database. In such cases, the 360T TEX platform’s “ISIN-Service” will generate a background query to ANNA via an API. Once the ISIN code has been provided by ANNA, it will be made available over all 360T API channels and Deal Blotters. Note that, depending on the instrument, the response times from ANNA for providing the ISIN code may vary.
To whom will 360T distribute ISIN codes?
360T will supply ISIN codes to the following participants.
- Clients accessing the 360T Multilateral Trading Facility (MTF) trading venue.
- Clients participating on the 360T OTC TEX trading platform.
Note: Clients utilising the 360T I-TEX/White label “technical solution” for the purpose of operating their own marketplaces are responsible for the provision of ISIN’s and hence should contact ANNA directly in order to make the appropriate arrangements for their delivery.
At what stage in the 360T trade workflow are ISIN codes delivered?
SELL-side clients will receive ISIN codes via the RFS Market Maker API in the initial RFS request message;
BUY-side clients will receive ISIN’s as part of the post-trade confirmation message.