Big Changes to Classification of Financial Instruments

FAQ
Glossary

ANNA: Major Changes Planned for CFI Identifier Used by Investors, Financial Firms and Regulators

Classification of Financial Instruments Code Updated to Include OTC Derivatives and New Assignment Options for OTC Contracts

Dublin, Ireland and Brussels, Belgium – 4 June 2015 – At its annual ordinary membership meeting in Dublin, the Association of National Numbering Agencies today formally updated its membership regarding the changes to the Classification of Financial Instruments (CFI) expected to be published in Q3. The national numbering agencies which comprise the ANNA membership are tasked with issuing identifying codes for all new securities issuances in their jurisdictions. These codes include the International Securities Identification Number (ISIN) and the CFI, which provides more granular details on instrument structure and terms.

“The updating of the CFI has been very important to the industry because it enables the new regulatory reporting mandates for derivatives to be accomplished through the same family of ISO-standard identifiers that are embedded globally through the operational lifecycle of other types of investment instruments,” notes Emma Kalliomaki, Head of SEDOL Master File at LSE Group and ANNA board member. She is also the convener of the ISO Working Group that is updating the CFI.

The expansion of the CFI standard, also known as ISO 10962, is the result of a revision process by a Working Group convened under ISO TC68/SC4, the Securities and Related Financial Instruments Subcommittee of the International Organization for Standardization (ISO). Active and ongoing participation was provided by a large number of national and liaison members including several industry organisations. The revised CFI standard was unanimously approved by participating countries earlier this year.

Among the changes to the standard are the extension of the classification of exchange-traded derivatives and the introduction of over-the-counter derivatives contracts, including swaps, spot, forwards, strategies, and complex options. OTC contracts, which can be multi-legged deals, were not previously addressed in the CFI because they are typically private contracts between counterparties, not traded openly on exchanges. New regulatory mandates, including the clearing of some OTC contracts through clearing houses and regulatory reporting on their formation and evolving status as they age, have triggered requirements for standard identification and classification codes.

The updated CFI rules will also include a radical departure from the historic assignment process. Currently CFIs are allocated only by national numbering agencies simultaneously with the allocation of ISINs. While the integral link between ISIN and CFI will continue, the revision permits counterparties in OTC transactions to self-generate CFIs based on the ISO 10962 allocation rules. Since these deals are not exchanged traded and have a limited lifespan, it is expected that in many cases the CFI will provide the necessary classification for clearing and reporting purposes.

In addition, the new classification rules for derivatives were designed to align with the ISDA taxonomy and FIX Protocol classification schemes. Despite the significant expansion to the CFI, care was taken to minimize impact on the user community and maintain, as much as possible, backwards compatibility with existing CFIs.

As a result of the new allowances for user allocation with OTC instruments, the role of Registration Authority for CFIs previously performed by ANNA will be discontinued. However, the allocation of ISINs and CFIs for financial instruments will continue to be done simultaneously by the ANNA membership globally.

About ANNA

Established in 1992 by 22 founding numbering agencies, ANNA is the membership organization of national numbering agencies, which are operated by depositories, exchanges, government agencies, nationally central data vendors and other financial infrastructure organizations. ANNA also serves as the registration authority for the ISIN numbering standard, under appointment by the International Organization for Standardization (ISO). Under ANNA’s stewardship, the role of the ISIN in enabling global financial communications has been established worldwide. ISINs are issued today in excess of 120 jurisdictions, while the number of national numbering agencies and nations working to establish national numbering agencies continues to grow each year.

For information about ANNA, its members and activities, please visit anna-web.org.

Media contact:

Kathleen Hawk
kathleen@clearviewpr.com
+1 845 687-2222

ISIN/CFI Files Now Linked to Markets, LEIs and More

FAQ
Glossary

ANNA Service Bureau Launches Enhanced ISIN Files

Redeveloped Database Now Incorporates ISINs with Legal Entity, Depository and Market Identifiers

Brussels, Belgium and Bali, Indonesia – 20 November, 2014 – From its annual extraordinary general meeting held in Bali, the Association of National Numbering Agencies (ANNA) today announced the culmination of a two-year development project to provide broadly enriched ISIN records to users of the ANNA Service Bureau (ASB). The new database, along with its interface to the numbering agencies serving more than 120 financial markets, has been completely redesigned to collect and maintain not only International Securities Identification Numbers (ISINs) and related Classifications of Financial Instruments (CFIs), as before, but a host of other related ISO-standards identifiers and their data elements. In addition, the database system offers more granular search facilities, enhanced quality checks and a portfolio service.

For industry participants and data vendors that subscribe to the ASB data services or use its online look-up service, this advance will offer a broader information set related to specific financial instruments, while eliminating the labor and complications of researching and integrating this information for use in trading, post-trade processing, risk management and regulatory reporting. The full set of standards-based numbering codes and data related to a financial instrument file now includes the following:

  • The Instrument
    – ISO 6166 International Securities Instrument Number (ISIN)
    – ISO 18774 Financial Instrument Short Name (FISN)
  • The Type of Instrument incl. features describing the instrument – ISO 120 10962 Classification of Financial Instruments (
  • The Issuer of the Instrument – ISO 17442 Legal Entity Identifier (LEI)
  • The issuer country code – ISO 3166, and headquarters address
  • The Denominated Currency – ISO 4217 Currency
  • Initial Trading Locations – ISO 10383 Market Identifier Code (MIC)
  • Lead Manager – identified by LEI
  • The Fund Manager – identified by LEI
  • Central Securities Depository – identified by LEI

The National Numbering Agencies (NNAs) will provide the ASB with the expanded set of ISO identifiers for financial instruments issued in their markets. LEIs will be available from countries in which LEIs are issued. The NNAs are in the process of converting to the new file-upload interface to the ASB. Enhanced data is now populating the ASB database from a growing number of financial markets.

“We are proud that this great project to increase the scope and value of the ANNA Service Bureau is coming to fruition,” said Dan Kuhnel, chairman of the ANNA board of directors. “ANNA has a long tradition of dedication and cooperation among its membership in support of market efficiency. Their willingness to support this vision, as well as the technical collaboration of the ASB partners, has created an unprecedented financial data resource that, we believe, will remove obstacles to straight-through processing and ease regulatory compliance tasks around the world.”

About the ISIN

The ISIN is the globally recognized, ISO-developed standard for instrument identification. Designed to uniquely identify financial instruments by key characteristics, the standard covers equities, debt, derivatives and other commonly issued and traded instruments. To date, more than 26 million unique ISINS have been assigned to investment instruments issued in 122 national markets, enabling issuers and investors to trade in these instruments in additional markets around the world.

About the ASB

The ANNA Service Bureau was established by ANNA in 2001 to support the membership and the industry as a consolidated hub of ISIN, CFI and related instrument information. The ASB is operated for ANNA by the US National Numbering Agency (NNA), CUSIP Global Services, and the Swiss NNA, SIX Financial Information. In addition to assisting the NNAs to serve their local market participants seeking international instrument data, the ASB also offers data subscriptions tailored to the needs of market participants and data vendors.

About ANNA

Established in 1992 by 22 founding numbering agencies, ANNA is the membership organization of national numbering agencies, which include depositories, exchanges, government agencies, data vendors and other financial infrastructure organizations. ANNA also serves as the Registration Authority for ISIN and CFI numbering standards, under appointment by the International Organization for Standardization (ISO). Under ANNA’s stewardship, the importance of the ISIN in enabling global financial communications is strongly established worldwide, while the number of national numbering agencies issuing ISINs continues to grow each year.

For information about ANNA, its members and activities, please visit anna-web.org.

Contact:
Kathleen Hawk
Clearview Associates
kathleen@clearviewpr.com
+1 (845) 687-2222