International Securities Identification Number (ISIN)
The International Securities Indentification Number (ISIN) is the recognised global standard for unique identification of financial instruments.
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19 July 2022
ESMA Questions and Answers on MiFIR data reporting (ESMA70-1861941480-56) updated - clarifications on reporting of emission allowances
ESMA makes available ISINs before second publication of annual transparency calculations - the list includes 1,162 ISINs (1,158 shares and 4 ETFs
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The ISIN comprises of a 12-digit alpha-numeric code, of which nine digits are a National Security Identifying Number (NSIN).
ISINs are required equally under the European Union MiFID II/MiFIR and EMIR legal mandates.
Firms cannot generate the ISIN code themselves, they have to contact with the numbering agencies such as the Association of National Numbering Agencies (ANNA).
The generation of the ISIN code could take up to several days to complete.
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ISIN under the MiFID II/MiFIR legal framework
The European Union's MiFID II/MiFIR legal framework mandates as from 3 January 2018 the use of ISINs to identify OTC derivatives:
- tradable on a European trading venues (ToTV), and
- those with underlying asset tradable on a European trading venue (uToTV).
The MiFID reporting obligations for these instruments affect, in particular:
- trading venues, and
- systematic internalisers (SIs).
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Answer 5
Pre-trade transparency information should allow identifying unequivocally the financial instrument to which the information published refers. ISINs are one of the available ways to ensure the unequivocal identification of a financial instrument. However, ESMA recognises that ISINs may not always be available when providing a quote. Trading venues and systematic internalisers are free to use other ways for identifying instruments for pre-trade transparency purposes as long as the financial instrument can be unequivocally identified.
Questions and Answers on MiFIR data reporting, 7 July 2017, ESMA70-1861941480-56
Answer 1
For the purpose of reporting reference data under the requirements of MiFIR Article 27, ISO 6166 ISINs, ISO 10962 CFI codes and ISO 18774 FISNs issued by the relevant National Numbering Agency (NNA) should be used. For further information please refer to the following link: http://www.anna-web.org/standards/about-identification-standards/.
Answer 2
For financial instruments for which submission of reference data is triggered by an order, quote or trade taking place, the ISINs have to be allocated in time to be included in the submission of reference data required under Article 2 of RTS 2316.
Answer 3
In case of a futures contract on sovereign bonds, field 26 (Underlying instrument code) should be populated with the ISIN of the cheapest-to-deliver bond. If this is unknown, this field should be populated with the ISIN of any of the bonds issued by the issuer. This concept also applies to transaction reports under Article 26 MIFIR for OTC derivatives where the underlying deliverable bond can be chosen from several bonds issued by the same issuer.
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Further important clarifications on ISINs when reporting emission allowances MiFID were provided for by the ESMA on 19 July 2022 in Questions and Answers on MiFIR data reporting (ESMA70-1861941480-56) - see details here.
ISIN under the EMIR Regulation
Under EMIR Level 3 validations the ISIN codes or the UPIs, as endorsed by ESMA, are required to be reported for trades in each product (also for each constituent of basket underliers) as from 1 November 2017.
Commission Implementing Regulation No 1247/2012 of 19 December 2012 laying down implementing technical standards with regard to the format and frequency of trade reports to trade repositories
as amended by
Commission Implementing Regulation (EU) 2017/105 of 19 October 2016 amending Implementing Regulation (EU) No 1247/2012 laying down implementing technical standards with regard to the format and frequency of trade reports to trade repositories according to Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories
Article 4(5) - (9)
5. The derivative shall be identified in Field 6 of Table 2 of the Annex using the following, where available:
(a) an ISO 6166 International Securities Identification Number (ISIN) code or an Alternative Instrument Identifier code (AII), as applicable, until the date of application of the delegated act adopted by the Commission pursuant to Article 27(3) of Regulation (EU) No 600/2014 of the European Parliament and of the Council.
(b) an ISIN from the date of application of the delegated act adopted by the Commission pursuant to Article 27(3) of Regulation (EU) No 600/2014. Where an AII code is used, the complete AII code shall be used.
6. The complete AII code referred to in paragraph 5 shall be the result of the concatenation of the following six elements:
(a) ISO 10383 Market Identifier Code (MIC) of the trading venue where the derivative is traded, specified using 4 alphanumeric characters;
(b) Code, which is assigned by the trading venue, uniquely associated with a particular underlying instrument and settlement type and other characteristics of the contract, specified using up to 12 alphanumeric characters;
(c) single character identifying whether the instrument is an option or a future, specified as "O" where it is an option and as "F" where it is a future;
(d) single character identifying whether the option is a put or a call, specified as "P" where it is a put option and as "C" where it is a call option; where the instrument has been identified as a future in accordance with point (c), it shall be specified as "F";
(e) exercise date or maturity date of a derivative contract specified in ISO 8601 YYYY-MM-DD standard;
(f) the strike price of an option, specified using up to 19 digits including up to five decimals without any leading or trailing zeros. A decimal point shall be used as the decimal separator. Negative values are not allowed. Where the instrument is a future, the strike price shall be populated with zero.
7. The derivative shall be classified in Field 4 of Table 2 of the Annex using an ISO 10692 Classification of Financial Instrument (CFI) code for products identified through an ISO 6166 ISIN code or an AII code.
8. Derivatives for which an ISO 6166 ISIN code or an AII code are not available shall be classified by means of a designated code. That code shall be:
(a) unique;
(b) neutral;
(c) reliable;
(d) open source;
(e) scalable;
(f) accessible;
(g) available at a reasonable cost basis;
(h) subject to an appropriate governance framework.
9. Until the code referred to in paragraph 8 is endorsed by ESMA, derivatives for which an ISO 6166 ISIN code or an AII code are not available shall be classified using an ISO 10692 CFI code.
Questions and Answers on MiFID II and MiFIR transparency topics, ESMA70-872942901-35
General Q&As on transparency topic, Question 13 [Last update: 03/06/2019]
In case of a corporate action where a traded ISIN is replaced with a new ISIN, how should the new ISIN be reported to FIRDS and FITRS?
Answer 13
In case of a corporate action where a traded ISIN is replaced with a new ISIN, the ISIN being replaced should be reported as terminated and the new ISIN should be reported as a newly admitted to trading or newly traded financial instrument in the ESMA IT systems (both in FIRDS and FITRS).
In particular, reporting entities are required to provide under field 11 of RTS 2313 (“Date of first admission to trading or date of first trade”) the date when the new ISIN was first admitted to trading or first traded on their platform, i.e. following the corporate action. The relevant competent authority for this financial instrument will be determined on this basis.
Submitting entities are required to make, where necessary, corrections in FIRDS by 31 July 2018 at the latest.
The double volume cap mechanism, Question 5 [Last update: 12/07/2018]
In case of a corporate action where a traded ISIN is replaced with a new ISIN, how will the new ISIN be treated for the purposes of the DVC?
Answer 5
In case of a corporate action, where a traded ISIN is replaced with a new ISIN, the new ISIN will be treated as a newly admitted to trading or newly traded financial instrument and the ESMA DVC calculations and publication will not take the trading activity of the old ISIN into account.
In addition, while ESMA will publish the percentage of trading in this financial instrument carried out under the reference price waiver and the negotiated transaction waiver from the start of trading, suspensions following the breach of the thresholds set out under Article 5 of MiFIR should only be triggered when at least 12 months of data for the new ISIN is available.
ESMA is however reflecting on ways and means to ensure more continuity in the treatment of financial instruments subject to corporate actions and might decide to revisit this approach in the future.