ISO 10962, Securities and related financial instruments – Classification of financial instruments (CFI code), is the worldwide reference for the codes used to classify financial instruments such as cash, derivatives or foreign exchange. It was first published in 2001 to address concerns in the financial community regarding the problems of obtaining information on securities when trading with different markets, and the inability to group securities in a consistent manner. The standard has recently been revised to address industry changes and requirements and keep it up to date with market needs.
The use of the codes and definitions found in the standard means increased efficiency, accuracy and transparency of financial transactions, as they can be used globally for Straight-Through Processing. It also makes the comparison of instruments that come from different countries more accurate and credible.
Corby Dear, Project Leader of the group of experts that developed the standard, said the newly revised version has a broadened scope and coverage of CFI codes.
“There have been a number of changes and improvements including those related to the classification of various types of derivatives such as foreign exchange derivatives for single currencies,” he said.
“Other improvements include those related to the identification of swap products and foreign exchange spot contracts.”
ISO 10962 is relevant to stock exchanges, banks, brokers, regulatory bodies and any other institution involved in securities.
The standard was developed by ISO technical committee ISO/TC 68, Financial services, subcommittee SC 8, Reference data for financial services, the secretariat of which is held by SNV, ISO’s member for Switzerland. It can be purchased from your national ISO member or through the ISO Store.