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An International Securities Identification Number (ISIN) is a code that uniquely identifies a security globally for the purposes of facilitating clearing, reporting and settlement of trades. Its structure is defined in ISO 6166. The ISIN code is a 12-character alphanumeric code that serves for uniform identification of a security through normalization of the assigned National Number, where one exists, at trading and settlement.
ISINs were first used in 1981, but did not reach wide acceptance until 1989, when the G30 countries recommended adoption. [1] The ISIN was endorsed a year later by ISO with the ISO 6166 standard.
Initially information was distributed via CD-ROMs and this was later replaced by distribution over the internet.[ citation needed ]
ISINs slowly gained traction worldwide and became the most popular global securities identifier. Trading, clearing and settlement systems in many countries adopted ISINs as a secondary measure of identifying securities. Some countries, mainly in Europe, moved to using the ISIN as their primary means of identifying securities. European regulations such as Solvency II Directive 2009 increasingly require the ISIN to be reported. [2]
In 2004, the European Union mandated the use of instrument identifiers in some of its regulatory reporting with ISIN as one of the valid identifiers. [3]
ISO 6166 (or ISO6166:2021 as of the 2021 revision [4] ) defines the structure of an International Securities Identification Number (ISIN). An ISIN uniquely identifies a fungible security.
Securities with which ISINs can be used are:
ISINs consist of two alphabetic characters, which are the ISO 3166-1 alpha-2 code for the issuing country, nine alpha-numeric characters (the National Securities Identifying Number, or NSIN, which identifies the security, padded as necessary with leading zeros), and one numerical check digit. They are thus always 12 characters in length. When the NSIN changes due to corporate actions or other reasons, the ISIN will also change.
An ISIN does not specify a particular trading location. Typically a MIC (Market Identifier Code) or the three-letter exchange code, will have to be specified in addition to the ISIN for this. The currency of the trade will also be required to uniquely identify the instrument using this method.[ citation needed ]
Each country has a national numbering agency responsible for issuing ISINs. Often these are national stock exchanges, central banks, but also financial regulators or financial data provider or clearing houses and rating agencies. A global governing body is the Association of National Numbering Agencies (ANNA). [5]
Since existing national numbering schemes administered by the various NNAs form the basis for ISINs, the methodology for assignment is not consistent across agencies globally.[ citation needed ]
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The ISIN is included in services sold by financial data vendors and intermediaries. The issuer of a security will include the ISIN in issuance papers or other documentation for identification purposes. These services are paid services as more value added data is included with the information of the ISIN.[ original research? ]
In 2009, Standard & Poor's was charged by the European Commission (EC) with abusing its position in licensing international securities identification codes for United States securities by requiring European financial firms and data vendors to pay licensing fees for their use. "This behaviour amounts to unfair pricing," the EC said in its statement of objections which lays the groundwork for an adverse finding against S&P. "The (numbers) are indispensable for a number of operations that financial institutions carry out – for instance, reporting to authorities or clearing and settlement – and cannot be substituted". [6] [7]
In 2011, Standard and Poor's provided six undertakings [8] to the European Commission to remedy the situation. The agreement is applicable to all consuming companies in the European Economic Area. These expired at the end of 2016.
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The examples below describes one approach for applying the Luhn algorithm on two different ISINs. The difference in the two examples has to do with if there are an odd or even number of digits after converting letters to number. Since the NSIN element can be any alpha numeric sequence (9 characters), an odd number of letters will result in an even number of digits and an even number of letters will result in an odd number of digits. For an odd number of digits, the approach in the first example is used. For an even number of digits, the approach in the second example is used. The Luhn algorithm can also be applied in the same manner for both types or lengths (alternating multiply the string of digits by 1 and 2, starting from the end of the string), being more generic.
Apple, Inc.: ISIN US0378331005, expanded from CUSIP 037833100 The main body of the ISIN is the original CUSIP, assigned in the 1970s. The country code "US" has been added on the front, and an additional check digit at the end. The country code indicates the country of issue. The check digit is calculated using the Luhn algorithm.
Convert any letters to numbers by taking the ASCII code of the capital letter and subtracting 55:
U = 30, S = 28. US037833100 -> 30 28 037833100
Collect odd and even characters:
3028037833100 = (3, 2, 0, 7, 3, 1, 0), (0, 8, 3, 8, 3, 0)
Multiply the group containing the rightmost character (which is the FIRST group) by 2:
(6, 4, 0, 14, 6, 2, 0)
Add up the individual digits:
(6 + 4 + 0 + (1 + 4) + 6 + 2 + 0) + (0 + 8 + 3 + 8 + 3 + 0) = 45
Take the 10s modulus of the sum:
45 mod 10 = 5
Subtract from 10:
10 − 5 = 5
Take the 10s modulus of the result (this final step is important in the instance where the modulus of the sum is 0, as the resulting check digit would be 10).
5 mod 10 = 5
So the ISIN check digit is five.
TREASURY CORP VICTORIA 5 3/4% 2005-2016: ISIN AU0000XVGZA3. The check digit is calculated using the Luhn algorithm.
Convert any letters to numbers by taking the ASCII code of the capital letter and subtracting 55:
A = 10, G = 16, U = 30, V = 31, X = 33, Z = 35. AU0000XVGZA -> 10 30 0000 33 31 16 35 10.
Collect odd and even characters:
103000003331163510 = (1, 3, 0, 0, 3, 3, 1, 3, 1), (0, 0, 0, 0, 3, 1, 6, 5, 0)
Multiply the group containing the rightmost character (which is the SECOND group) by 2:
(0, 0, 0, 0, 6, 2, 12, 10, 0)
Add up the individual digits:
(1 + 3 + 0 + 0 + 3 + 3 + 1 + 3 + 1) + (0 + 0 + 0 + 0 + 6 + 2 + (1 + 2) + (1 + 0) + 0) = 27
Take the 10s modulus of the sum:
27 mod 10 = 7
Subtract from 10:
10 − 7 = 3
Take the 10s modulus of the result (this final step is important in the instance where the modulus of the sum is 0, as the resulting check digit would be 10).
3 mod 10 = 3
So the ISIN check digit is three.
BAE Systems: ISIN GB0002634946, expanded from SEDOL 000263494
The main body is the SEDOL, padded on the front with the addition of two zeros. The country code "GB" is then added on the front, and the check digit on the end as in the example above.
 | This section possibly contains original research .(June 2024) |
The Treasury Corporation of Victoria ISIN illustrates a flaw in ISIN's check digit algorithm which allows transposed letters: Suppose the ISIN was mis-typed as AU0000VXGZA3 (instead of AU0000XVGZA3)
A = 10, G = 16, U = 30, V = 31, X = 33, Z = 35. "AU0000VXGZA" -> 10 30 00 00 31 33 16 35 10".
Collect odd and even characters:
103000003133163510 = (1, 3, 0, 0, 3, 3, 1, 3, 1), (0, 0, 0, 0, 1, 3, 6, 5, 0)
Multiply the group containing the rightmost character (which is the SECOND group) by 2:
(0, 0, 0, 0, 2, 6, 12, 10, 0)
Add up the individual digits:
(1 + 3 + 0 + 0 + 3 + 3 + 1 + 3 + 1) + (0 + 0 + 0 + 0 + 2 + 6 + (1 + 2) + (1 + 0) + 0) = 27
Take the 10s modulus of the sum:
27 mod 10 = 7
Subtract from 10:
10 − 7 = 3
Take the 10s modulus of the result (this final step is important in the instance where the modulus of the sum is 0, as the resulting check digit would be 10).
3 mod 10 = 3
So the ISIN check digit is still three even though two letters have been transposed.
Such flaw against a single transposed pair of letters or digits would have been avoided using two check digits instead of just one (i.e., a 97 modulus instead of the 10 modulus, like in IBAN numbers which may also mix letters and digits). Some protocols require the transmission of additional check digits added to the full ISIN number.
The International Standard Book Number (ISBN) is a numeric commercial book identifier that is intended to be unique. Publishers purchase or receive ISBNs from an affiliate of the International ISBN Agency.
The International Bank Account Number (IBAN) is an internationally agreed upon system of identifying bank accounts across national borders to facilitate the communication and processing of cross border transactions with a reduced risk of transcription errors. An IBAN uniquely identifies the account of a customer at a financial institution. It was originally adopted by the European Committee for Banking Standards (ECBS) and since 1997 as the international standard ISO 13616 under the International Organization for Standardization (ISO). The current version is ISO 13616:2020, which indicates the Society for Worldwide Interbank Financial Telecommunication (SWIFT) as the formal registrar. Initially developed to facilitate payments within the European Union, it has been implemented by most European countries and numerous countries in other parts of the world, mainly in the Middle East and the Caribbean. By July 2023, 86 countries were using the IBAN numbering system.
A ticker symbol or stock symbol is an abbreviation used to uniquely identify publicly traded shares of a particular stock on a particular stock market. In short, ticker symbols are arrangements of symbols or characters representing specific assets or securities listed on a stock exchange or traded publicly. A stock symbol may consist of letters, numbers, or a combination of both. "Ticker symbol" refers to the symbols that were printed on the ticker tape of a ticker tape machine.
A vehicle identification number is a unique code, including a serial number, used by the automotive industry to identify individual motor vehicles, towed vehicles, motorcycles, scooters and mopeds, as defined by the International Organization for Standardization in ISO 3779 and ISO 4030.
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 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.
A check digit is a form of redundancy check used for error detection on identification numbers, such as bank account numbers, which are used in an application where they will at least sometimes be input manually. It is analogous to a binary parity bit used to check for errors in computer-generated data. It consists of one or more digits computed by an algorithm from the other digits in the sequence input.
The Luhn algorithm or Luhn formula, also known as the "modulus 10" or "mod 10" algorithm, named after its creator, IBM scientist Hans Peter Luhn, is a simple check digit formula used to validate a variety of identification numbers. It is described in U.S. Patent No. 2,950,048, granted on August 23, 1960.
SEDOL stands for Stock Exchange Daily Official List, a list of security identifiers used in the United Kingdom and Ireland for clearing purposes. The numbers are assigned by the London Stock Exchange, on request by the security issuer. SEDOLs serve as the National Securities Identifying Number for all securities issued in the United Kingdom and are therefore part of the security's ISIN as well. The SEDOL Masterfile (SMF) provides reference data on millions of global multi-asset securities each uniquely identified at the market level using a universal SEDOL code.
A CUSIP is a nine-character numeric or alphanumeric code that uniquely identifies a North American financial security for the purposes of facilitating clearing and settlement of trades. All CUSIP identifiers are fungible, which means that a unique CUSIP identifier for each individual security stays the same, regardless of the exchange where the shares were purchased or venue on which the shares were traded. CUSIP was adopted as an American national standard by the Accredited Standards Committee X9 and is designated ANSI X9.6. CUSIP was re-approved as an ANSI standard in December 2020. The acronym derives from Committee on Uniform Security Identification Procedures.
ISO/IEC 7812Identification cards – Identification of issuers is an international standard published jointly by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC). It specifies "a numbering system for the identification of the card issuers, the format of the issuer identification number (IIN) and the primary account number (PAN)", and procedures for registering IINs. It was first published in 1989.
ISO 6346 is an international standard covering the coding, identification and marking of intermodal (shipping) containers used within containerized intermodal freight transport by the International Organization for Standardization (ISO). The standard establishes a visual identification system for every container that includes a unique serial number, the owner, a country code, a size, type and equipment category as well as any operational marks. The register of container owners is managed by the International Container Bureau (BIC).
A National Securities Identifying Number, or NSIN, is a generic nine-digit alphanumeric code which identifies a fungible security. The NSIN is issued by a national numbering agency (NNA) designated for that country. Regional substitute NNAs have been allocated the task of functioning as NNAs in those countries where NNAs have not yet been established. NSINs are used as part of the makeup of a product's ISIN.
A national identification number, national identity number, or national insurance number or JMBG/EMBG is used by the governments of many countries as a means of tracking their citizens, permanent residents, and temporary residents for the purposes of work, taxation, government benefits, health care, and other governmentally-related functions.
The Wertpapierkennnummer is a German securities identification code. It is composed of six digits or capital letters, and no check digit.
The Luhn mod N algorithm is an extension to the Luhn algorithm that allows it to work with sequences of values in any even-numbered base. This can be useful when a check digit is required to validate an identification string composed of letters, a combination of letters and digits or any arbitrary set of N characters where N is divisible by 2.
MSI is a barcode symbology developed by the MSI Data Corporation, based on the original Plessey Code symbology. It is a continuous symbology that is not self-checking. MSI is used primarily for inventory control, marking storage containers and shelves in warehouse environments.
A Central Index Key or CIK number is a unique number assigned to an individual, company, filing agent or foreign government by the United States Securities and Exchange Commission. The number is used to identify its filings in several online databases, including EDGAR.
The National Health Index (NHI) number is the unique person identifier used within the New Zealand health system. It is technically not a number but rather an alphanumeric identifier consisting of 7 characters, with three letters and four numbers. It is often referred to as the NHI, although care must be taken when using this abbreviated term, because the NHI can also refer to the national collection of health care user demographic data.
The VALOR number is a code which uniquely identifies listed securities and financial instruments in Switzerland, and serves a similar purpose to CUSIP or WKN in the North American or German markets respectively. The VALOR number is incorporated in the Swiss ISIN number.
The Market Identifier Code (MIC) is a unique identification code used to identify securities trading exchanges, regulated and non-regulated trading markets. The MIC is a four alphanumeric character code, and is defined in ISO 10383 by the International Organization for Standardization (ISO). For example, the US NASDAQ market is identified by MIC XNAS.
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ISIN (P946) (see uses )