The Swiss Valoren Number: Definition, Applications, and FAQs
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Summary:
Valoren numbers are essential in Swiss financial markets, serving as unique identification codes for various financial instruments. This comprehensive guide explores the intricacies of Valoren numbers, their issuance, applications, and significance in facilitating efficient market operations and security identification.
Understanding the swiss valoren number: Example & how it’s used
The Swiss Valoren number, a numeric code assigned to financial instruments, plays a pivotal role in the country’s financial markets. Often compared to the CUSIP numbers used in North America, Valoren numbers are integral for uniquely identifying securities and facilitating efficient trading operations.
How a valoren number works
Valoren numbers, typically ranging from six to nine digits, are devoid of inherent meaning. Instead, they are sequentially assigned from a predetermined list whenever a new identification is needed. Unlike ISINs or CUSIPs, Valoren numbers do not contain embedded data about the financial instrument itself. Instead, they serve as unique identifiers utilized by market data firms and financial institutions across Europe, particularly for Swiss companies and trade data storage.
Issuer and background
SIX Financial Information, a subsidiary of SIX Group headquartered in Zurich, Switzerland, is responsible for issuing Valoren numbers. Formerly known as Telekurs, the company boasts a global presence with offices in over 20 countries. SIX Financial Information collates market data from major trading venues worldwide in real-time, managing a comprehensive database encompassing structured and encoded information for more than 20 million financial instruments.
Founded in 1996, Telekurs underwent restructuring and product expansion before merging with SWX Group, SIS Swiss Financial Services Group, and SEGA Intersettle to form SIX Group in 2008. Following the merger, Telekurs Financial was rebranded as SIX Telekurs, serving as the Financial Information division of SIX Group. By April 2012, the use of the “Telekurs” name was phased out entirely.
Applications and uses
Valoren numbers find extensive application in identifying financial instruments globally. Allocated according to predefined rules, they serve as unique identifiers, often paired with Market Identifier Codes (MICs) and currency codes for comprehensive identification of traded instruments. These numbers are instrumental in transaction reporting and position keeping, playing a vital role in securities administration and market operations.
Frequently asked questions
What types of financial instruments are assigned valoren numbers?
Valoren numbers are assigned to various financial instruments, including stocks, bonds, derivatives, and other securities traded in Swiss financial markets.
Are valoren numbers unique to Switzerland?
Yes, Valoren numbers are primarily used in Switzerland to identify financial instruments traded in Swiss markets. However, they may also be used by financial institutions outside Switzerland for referencing Swiss securities.
Can valoren numbers be used to track historical market data?
Yes, Valoren numbers are often used by market data firms and financial institutions to track historical market data, including price movements, trading volumes, and other relevant information for Swiss securities.
How long does it take to obtain a valoren number for a new financial instrument?
The issuance of a Valoren number typically occurs promptly upon request, as they are sequentially allocated from a predetermined list maintained by SIX Financial Information.
What are the key differences between valoren numbers and ISINs?
While both Valoren numbers and ISINs are used for identifying financial instruments, ISINs are internationally recognized and standardized codes, whereas Valoren numbers are primarily used in Swiss financial markets.
Can valoren numbers be used for regulatory reporting?
Yes, Valoren numbers are often included in regulatory reporting for financial transactions, providing a unique identifier for each instrument involved.
Are valoren numbers subject to expiration or renewal?
No, Valoren numbers are assigned to financial instruments indefinitely and do not require expiration or renewal.
Key takeaways
- Valoren numbers are essential identifiers for financial instruments in Swiss financial markets, functioning similarly to CUSIP numbers in North America.
- Issued by SIX Financial Information, Valoren numbers facilitate efficient transaction reporting, security identification, and market operations.
- While lacking inherent meaning, Valoren numbers play a crucial role in enhancing security identification and facilitating global trade of Swiss securities.
- Despite primarily being used in Swiss markets, Valoren numbers may also find application in referencing Swiss securities by financial institutions outside Switzerland.
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