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International
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re: International Security Identification
Anonymous
17 Nov 1997 4:15PM ET> > > I am curious as to how other firms are (or will be) identifying international (non-US) securities when using the FIX protocol.
> > >
> > > Seeing that there is no standard for international ticker symbols, our plan is to primarily rely on a combination of SEDOL and ISO currency code.
> > >
> > > The currency code will be used as a backup, in case our, or our trading partner's, SEDOL is slightly mismatched. For example, Guiness PLC trades in London and Ireland. The London version has one SEDOL, and the Ireland version has another SEDOL. One possibility is that our security master file may have incorrectly mapped the Irish SEDOL for the London version of the security. Assuming we want to trade Guiness on the London exchange, we would have sent the incorrect SEDOL to our trading partner. By also sending the currency code (which is set up correctly), our trading partner would be alerted to the mismatch and would alert us.
> > >
> > > How are other firms handling international security identification? Are you using SEDOL, ISIN, CINS, etc? Are you using any ticker symbols (e.g. RIC-code?)
> > >
> > > --Rich Lerman
> > >
> > Many different codes - plus one, the security name, as a crosscheck. There is probably no symbology with a total coverage at the Worldwide level.
> >
> > The most complete symbology I have found is a combination of local (market defined) security codes and/or symbols, and FIX market codes (e.g. SICOVAM code or Paris bourse symbol, + "PA" as the market), if not the most convenient. For instance "TNU PA" or "012345 PA".
> >
> > It is also fairly difficult to build from the US, and not always applicable for settlement with our clients.
> >
> > At the real user level the most commonly used is probably the RIC. I am not sure how to setup complete RIC reference databases. In addition I guess some network vendors would not be allowed to use it, am I right ?
> >
> > By the way, be aware that using a currency code will not work anymore in 1999 in Europe - with the European Monetary Unit, you will trade on different markets using the same currency.
> >
> > But maybe users will not mention the market anymore at that time - since European markets could be arbitraged one against the other.
> >
> >
> 11/17/97---RIC Code is what most investors/traders are looking at as far as equity pricing however it is not an "approved" identification code. It seems to us that we will have to build a cross-referencing table within our own security master. Bridge/Telesphere offer such a service through their Global Chronicle service (for Corporate Actions) but it is limited in scope since it's a desktop service. I believe they offer a more comprehensive bulk data feed and will also work with users to establish these tables accordingly. EMU and the introduction of The EURO presents several problems. It isn't entirely correct to assume that the "legacy currencies" of each member country will simply disappear. There is a transitional phase that commences on 01/01/99 and continues until 01/01/02.
The ICSD's such as Euroclear/Cedel offer insights into the expected mechanics of "redenomination". Visit their websites for more detail. My understanding is that all appropriate equities will trade in EUROS commencing 01/01/99 but clients may still "pay/settle" using the DEM/FRF/NLG etc....So we all need to consider these ramifications accordingly. ISO has already said that they will not issues new ISIN's for the EURO denominated securities...so we all have to look at the flexibility of coding these securities with more than one base currency!!! Everyone's focused here on Y2K issues but the EURO will cause more trouble...sooner.
re: International Security Identification
Anonymous 17 Nov 1997 4:15PM ET
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