ISO 10962
ISO 10962 defines the structure and format for classification of financial instruments approved by the International Organization for Standardization.
There are many types of Financial Instruments used for saving, investing, trading, hedging and speculating. These instruments are generally organized in groups called "asset classifications." The most common asset classifications are generally described using terms like "Equities," "Debt," "Derivatives," "Currencies," and a few other generalized terms.
ISO 10962 provides a global standard for these classifications in the form of specific codes. Classification of financial instrument Code is used to define and describe financial instruments as a uniform set of codes for all market participants.
The code is issued by the members of . The group is currently working to simplify the structure so that it can be adopted more widely by non-governmental market participants.
The letters from the ISO basic Latin alphabet in each position of this 6 character code reflect specific characteristics intrinsic to the financial instruments that are defined at the issue of the instrument, and which in most cases remain unchanged during the lifetime of the instrument.
History of ISO 10962 Modification
- Standard was first accepted and published in 1997 as ISO 10962:1997
- Its first revision, published in 2001, was ISO 10962:2001
- In 2006, FIX Protocol group published a proposal for changes of the standard for Consultation.
- The last revised and accepted version of the standard is ISO 10962:2015 and was published by ISO in 2015.
- As of April 2019, the next revision is in development as ISO/DIS 10962.
Background and Goals of Introduction
CFI codes also aim to simplify electronic communication between participants, improve understanding of the characteristics of financial instruments for the investors, and allow securities grouping in a consistent manner for reporting and categorization purposes.
Structure of CFI Code
- The first character indicates the highest level of category to which the instrument belongs: Equities, Debt, Entitlements, Options, Futures and Others.
- The second character refers to specific groups within each category. For example, the subdivisions of the Equities category are: ordinary shares, preferred/preference shares, units, and others, while for the Debt instruments category, the subdivisions are: bonds, convertible bonds, money market instruments, and others.
- The other four characters refer to each group's main features. For example, in the case of equities, whether they are voting or non-voting, restrictions, payment status, etc. In the case of Debt instruments, the type of interest, guarantee, form of redemption, etc.
- The letter X always means Not Applicable/Undefined.
Table of CFI Code Construction
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Sample of Main CFI Classifications
E | Equities | D | Debt Instruments |
ES | Shares | DB | Bonds |
EP | Preferred shares | DC | Convertible bonds |
ER | Preference shares | DW | Bonds with warrants attached |
EC | Convertible shares | DT | Medium-term notes |
EF | Preferred convertible shares | DY | Money market instruments |
EV | Preference convertibles shares | DM | Others |
EU | Units, i.e. unit trusts/mutual funds/OPCVM/OICVM | ||
R | Entitlements | O | Options |
RA | Allotment rights | OC | Call options |
RS | Subscription rights | OP | Put options |
RP | Purchase rights | OM | Others |
RW | Warrants | ||
RM | Others | ||
F | Futures | M | Others |
FF | Financial futures | MR | |
FC | Commodities futures | MM | Other assets, e.g. Real Estate, Insurance Policies |
Existing Possible Values
- E = Equities
- * S = Shares
- ** 1: Voting Right
- *** V = Voting
- *** N = non Voting
- ***
- ** 2: Ownership/transfer restrictions
- *** T = Restrictions
- *** U = Free
- ** 3: Payment status
- *** O = Nil paid
- *** P = Partly paid
- *** F = Fully paid
- ** 4: Form:
- *** B = Bearer
- *** R = Registered
- *** N = Bearer/Registered
- *** Z = Bearer depository receipt
- *** A = Registered depository receipt
- * P = Preferred Shares
- * R = Preference Shares
- * C = Convertible shares
- * F = Preferred convertible shares
- * V = Preference convertible shares
- * U = Units
- * M = Others
- D = Debt Instruments
- * B = Bonds
- * C = Convertible bonds
- * M = Others
- * T = Medium-term Notes
- * W = Bonds With Warrants Attached
- * Y = Money Market Instruments
- R = Entitlements
- * A = Allotment Rights
- * M = Others
- * S = Subscription rights
- * W = Warrants
- O = Options
- * C = Call Options
- ** 1: Exercise Style
- *** A = American
- *** E = European
- *** B = Bermudan
- ** 2: Underlying Asset
- *** S = Stock
- *** I = Index
- *** D = Debt
- *** C = Currency
- *** O = Option
- *** F = Future
- *** T = Commodity
- *** W = Swap
- *** B = Basket
- *** N = Interest Rates
- *** M = Other
- ** 3: Delivery
- *** C = Cash
- *** P = Physical
- *** N = Non-Deliverable
- *** E = Elect at Exercise
- ** 4: Standard/Non-standard
- *** S = Standard
- *** N = Non-standard
- * P = Put Options
- ** Same as Call
- * M = Others Options
- ** Attributes 1 to 4:
- *** X = not used
- F = Futures
- * C = Commodities Futures
- ** 1: Underlying Asset
- *** A = Agricultural
- *** E = Extraction
- *** I = Industrial
- *** S = Service
- ** 2: Delivery
- *** C = Cash
- *** P = Physical
- ** 3: Standard/Non-standard
- *** S = Standard
- *** N = Non-standard
- ** 4: not used
- *** X = not used
- * F = Financial Futures
- ** 1: Underlying Asset
- *** S = Stock
- *** I = Index
- *** D = Debt
- *** C = Currency
- *** O = Option
- *** F = Future
- *** W = Swap
- *** B = Basket
- *** M = Other
- ** 2: Delivery
- *** C = Cash
- *** P = Physical
- ** 3: Standard/Non-standard
- *** S = Standard
- *** N = Non-standard
- ** 4: not used
- *** X = not used
- M = Others
- * M = Other Assets
- * R = Referential Instruments
- ** 1: Further grouping
- *** C = Currencies
- *** T = Commodities
- *** R = Interest Rates
- *** I = Indices
- ESNTPB is Equities/Shares/Non-voting/Restrictions/Partly paid/Bearer
- ESXXXX is Equities/Shares
- OPASPS is Options/Put/American/Stock/Physical/Standard
- FFIXXX is Futures/Financial/Index
- FXXXXX is Futures
- RWXXXX is Rights/Warrant