ISO 10962:2019
(Main)Securities and related financial instruments — Classification of financial instruments (CFI) code
Securities and related financial instruments — Classification of financial instruments (CFI) code
This document defines and describes codes for an internationally valid system to classify financial instruments. The classification system applies to financial instruments negotiated internationally as well as to domestic instruments. The term "financial instruments" refers not only to classical securities, but also covers the innovative financial products that have emerged in different markets (a trend that is expected to continue in the future). This document is intended for use in any application in the trading and administration of securities in the international securities business. In so far as the trading and the administration of securities do not affect other countries, the application of this document remains at the discretion of the responsible national bodies, such as stock exchanges, banks, brokers, regulatory bodies and other institutions active in the securities field. In principle, the CFI code reflects characteristics that are defined when a financial instrument is issued and that remain unchanged during its entire lifetime. However, a few events that can lead to a new CFI code for the same instrument are anticipated, such as the changing of voting rights or ownership restrictions by a stockholders' meeting.
Valeurs mobilières et autres instruments financiers concernés — Classification des instruments financiers (code CFI)
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INTERNATIONAL ISO
STANDARD 10962
Redline version
compares Fourth edition to
Third edition
Securities and related financial
instruments — Classification of
financial instruments (CFI) code
Valeurs mobilières et autres instruments financiers concernés —
Classification des instruments financiers (code CFI)
Reference number
ISO 10962:redline:2019(E)
©
ISO 2019
---------------------- Page: 1 ----------------------
ISO 10962:redline:2019(E)
IMPORTANT
This marked-up version uses the following colour-coding in the marked-up text:
Text example 1 — Text has been added (in green)
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Text example 2
— Graphic figure has been added
— Graphic figure has been deleted
1.x . — If there are changes in a clause/subclause, the corresponding clause/
subclause number is highlighted in yellow in the Table of contents
DISCLAIMER
This marked-up version highlights the main changes in this edition of the document
compared with the previous edition. It does not focus on details (e.g. changes in
punctuation).
This marked-up version does not constitute the official ISO document and is not intended to
be used for implementation purposes.
COPYRIGHT PROTECTED DOCUMENT
© ISO 2019
All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may
be reproduced or utilized otherwise in any form or by any means, electronic or mechanical, including photocopying, or posting
on the internet or an intranet, without prior written permission. Permission can be requested from either ISO at the address
below or ISO’s member body in the country of the requester.
ISO copyright office
CP 401 • Ch. de Blandonnet 8
CH-1214 Vernier, Geneva
Phone: +41 22 749 01 11
Fax: +41 22 749 09 47
Email: copyright@iso.org
Website: www.iso.org
Published in Switzerland
ii © ISO 2019 – All rights reserved
---------------------- Page: 2 ----------------------
ISO 10962:redline:2019(E)
Contents Page
Foreword .vi
Introduction .vii
1 Scope . 1
2 Normative references . 1
3 Terms and definitions . 1
3 4 Conventions and principles . 1
4 5 CFI allocation . 3
4.1 5.1 General . 3
4.2 5.2 Existing CFIs and existing securities without a CFI . 3
5 6 Codes and definitions . 3
5.1 6.1 Categories . 3
5.2 6.2 Equities - E-*-*-*-*-*- . 4
5.2.1 6.2.1 Description . 4
5.2.2 6.2.2 Common/ordinary shares - E-S-*-*-*-*-. 5
5.2.3 6.2.3 Preferred/preference shares - E-P-*-*-*-*-. 6
5.2.4 6.2.4 Common/ordinary convertible shares - E-C-*-*-*-*- . 8
5.2.5 6.2.5 Preferred/preference convertible shares - E-F-*-*-*-*- . 9
5.2.6 6.2.6 Limited partnership units - E-L-*-*-*-*- .10
5.2.7 6.2.7 Depositary receipts on equities - E-D-*-*-*-*- .11
5.2.8 6.2.8 Structured instruments (participation) - E-Y-*-*-*-*- .12
5.2.9 6.2.9 Others (miscellaneous) - E-M-X-X-X-*- .15
5.3 6.3 Collective investment vehicles CIVs - C-*-*-*-*-*- .16
5.3.1 6.3.1 Description .16
5.3.2 6.3.2 Standard (vanilla) investment funds/mutual funds - C-I-*-*-*-*- . .16
5.3.3 6.3.3 Hedge funds - C-H-*-X-X-X- .18
5.3.4 6.3.4 Real estate investment trusts (REIT) REITs - C-B-*-*-X-*- .20
5.3.5 6.3.5 Exchange traded funds (ETF) ETFs - C-E-*-*-*-*- .20
5.3.6 6.3.6 Pension funds - C-S-*-*-*-*- .22
5.3.7 6.3.7 Funds of funds - C-F-*-*-*-*- .22
5.3.8 6.3.8 Private equity funds - C-P-*-*-*-*- .23
5.3.9 6.3.9 Others (miscellaneous) - C-M-X-X-X-*- .25
5.4 6.4 Debt instruments - D-*-*-*-*-*- .25
5.4.1 6.4.1 Description .25
5.4.2 6.4.2 Bonds - D-B-*-*-*-*- .26
5.4.3 6.4.3 Convertible bonds - D-C-*-*-*-*- .29
5.4.4 6.4.4 Bonds with warrants attached - D-W-*-*-*-*- .31
5.4.5 6.4.5 Medium term notes - D-T-*-*-*-*- .33
5.4.6 6.4.6 Money market instruments - D-Y-*-*-X-*- .34
5.4.7 6.4.7 Structured instruments (capital protection) - D-S-*-*-*-*- .36
5.4.8 6.4.8 Structured instruments (without capital protection) - D-E-*-*-*-*- .38
5.4.9 6.4.9 Mortgage-backed securities - D-G-*-*-*-*- .41
5.4.10 6.4.10 Asset-backed securities - D-A-*-*-*-*- .43
5.4.11 6.4.11 Municipal bonds - D-N-*-*-*-*- .45
5.4.12 6.4.12 Depositary receipts on debt instruments - D-D-*-*-*-*- .47
5.4.13 6.4.13 Others (miscellaneous) - D-M-*-X-X-*- .49
5.5 6.5 Entitlements (rights) - R-*-*-*-*-*- .49
5.5.1 6.5.1 Description .49
5.5.2 6.5.2 Allotment (bonus) rights - R-A-X-X-X-*- .50
5.5.3 6.5.3 Subscription rights - R-S-*-X-X-*- .50
5.5.4 6.5.4 Purchase rights - R-P-*-X-X-*- .51
5.5.5 6.5.5 Warrants - R-W-*-*-*-*- .52
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ISO 10962:redline:2019(E)
5.5.6 6.5.6 Mini-future certificates/constant leverage certificates - R-F-*-*-*-*- . .54
5.5.7 6.5.7 Depositary receipts on entitlements - R-D-*-X-X-*- .55
5.5.8 6.5.8 Others (miscellaneous) - R-M-X-X-X-X- .56
5.6 6.6 Listed options - O-*-*-*-*-*- .56
5.6.1 6.6.1 Description .56
5.6.2 6.6.2 Call options - O-C-*-*-*-*- .56
5.6.3 6.6.3 Put options - O-P-*-*-*-*- .58
5.6.4 6.6.4 Others (miscellaneous) - O-M-X-X-X-X- .59
5.7 6.7 Futures - F-*-*-*-*-X- .60
5.7.1 6.7.1 Description .60
5.7.2 6.7.2 Financial futures - F-F-*-*-*-X- .60
5.7.3 6.7.3 Commodities futures - F-C-*-*-*-X- .61
5.8 6.8 Swaps - S-*-*-*-*-*- .62
5.8.1 6.8.1 Description .62
5.8.2 6.8.2 Rates - S-R-*-*-*-*- .62
5.8.3 6.8.3 Commodities - S-T-*-*-X-*- .65
5.8.4 6.8.4 Equity - S-E-*-*-X-*- .67
5.8.5 6.8.5 Credit - S-C-*-*-*-*- .68
5.8.6 6.8.6 Foreign exchange - S-F-*-X-X-*- .70
5.8.7 6.8.7 Others (miscellaneous) - S-M-*-X-X-*- .71
5.9 6.9 Non-listed and complex listed options - H-*-*-*-*-*- .72
5.9.1 6.9.1 Description .72
5.9.2 6.9.2 Rates - H-R-*-*-*-*- .72
5.9.3 6.9.3 Commodities - H-T-*-*-*-*- .76
5.9.4 6.9.4 Equity - H-E-*-*-*-*- . .78
5.9.5 6.9.5 Credit - H-C-*-*-*-*- .80
5.9.6 6.9.6 Foreign exchange - H-F-*-*-*-*- .81
5.9.7 6.9.7 Others (miscellaneous) - H-M-*-*-*-*- .83
5.10 6.10 Spot - I-*-*-X-X-*- .85
5.10.1 6.10.1 Description .85
5.10.2 6.10.2 Foreign exchange - I-F-X-X-X-P- .85
5.10.3 6.10.3 Commodities - I-T-*-X-X-X- .85
5.11 6.11 Forwards - J-*-*-X-*-*- .86
5.11.1 6.11.1 Description .86
5.11.2 6.11.2 Equity - J-E-*-X-*-*- .86
5.11.3 6.11.3 Foreign exchange - J-F-*-X-*-*- .87
5.11.4 6.11.4 Credit - J-C-*-X-*-*- .88
5.11.5 6.11.5 Rates - J-R-*-X-*-*- .89
5.11.6 6.11.6 Commodities - J-T-*-X-*-*- .90
5.12 6.12 Strategies - K-*-X-X-X-X- .91
5.12.1 6.12.1 Description .91
5.12.2 6.12.2 Rates - K-R-X-X-X-X- .91
5.12.3 6.12.3 Commodities - K-T-X-X-X-X- .92
5.12.4 6.12.4 Equity - K-E-X-X-X-X-.92
5.12.5 6.12.5 Credit - K-C-X-X-X-X- .92
5.12.6 6.12.6 Foreign exchange - K-F-X-X-X-X- .93
5.12.7 6.12.7 Mixed assets - K-Y-X-X-X-X- .93
5.12.8 6.12.8 Others (miscellaneous) - K-M-X-X-X-X- .93
5.13 6.13 Financing - L-*-*-*-X-*- .94
5.13.1 6.13.1 Description .94
5.13.2 6.13.2 Loan-lease - L-L-*-X-X-*- .94
5.13.3 6.13.3 Repurchase agreements - L-R-*-*-X-*- .95
5.13.4 6.13.4 Securities lending - L-S-*-*-X-*- .96
5.14 6.14 Referential instruments - T-*-*-*-*-X-.97
5.14.1 6.14.1 Description .97
5.14.2 6.14.2 Currencies - T-C-*-X-X-X- .98
5.14.3 6.14.3 Commodities - T-T-*-X-X-X- .98
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ISO 10962:redline:2019(E)
5.14.4 6.14.4 Interest rates - T-R-*-*-X-X- .99
5.14.5 6.14.5 Indices - T-I-*-*-*-X- .100
5.14.6 6.14.6 Baskets - T-B-*-X-X-X- .102
5.14.7 6.14.7 Stock dividends - T-D-*-X-X-X- .102
5.14.8 6.14.8 Others (miscellaneous) - T-M-X-X-X-X- .103
5.15 6.15 Others (miscellaneous) - M-*-*-*-X-*- .103
5.15.1 6.15.1 Description .103
5.15.2 6.15.2 Combined instruments - M-C-*-*-X-*- .103
5.15.3 6.15.3 Other assets - M-M-*-X-X-X- .104
Annex A (informative) Classification examples.106
Bibliography .113
© ISO 2019 – All rights reserved v
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ISO 10962:redline:2019(E)
Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies (ISO member bodies). The work of preparing International Standards is normally carried out
through ISO technical committees. Each member body interested in a subject for which a technical
committee has been established has the right to be represented on that committee. International
organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.
ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of
electrotechnical standardization.
The procedures used to develop this document and those intended for its further maintenance are
described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the
different types of ISO documents should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www .iso .org/directiveswww .iso .org/directives).
Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of
any patent rights identified during the development of the document will be in the Introduction and/or
on the ISO list of patent declarations received (see www .iso .org/patentswww .iso .org/patents).
Any trade name used in this document is information given for the convenience of users and does not
constitute an endorsement.
For an explanation on theof the voluntary nature of standards, the meaning of ISO specific
terms and expressions related to conformity assessment, as well as information about
ISO's adherence to the WTOWorld Trade Organization (WTO) principles in the Technical
Barriers to Trade (TBT) see the following URL: , see Foreword - Supplementary information
www .iso .org/iso/foreword .html.
The committee responsible for this document isThis document was prepared by Technical Committee
ISO/TC 68, Financial services, Subcommittee SC 48, Securities and related financial instrumentsReference
data for financial services.
This thirdfourth edition cancels and replaces the secondthird edition (ISO 10962:20012015) which
has been extended to cover necessary technical changes.technically revised. The main changes to the
previous edition are as follows:
— To address industry requirements for the classification of derivative instruments, 6.8, 6.9 and
6.11 have been amended, where the support for multi-commodity derivatives, the addition of
exercise styles not connected to option type (put or call) and the ability to classify foreign exchange
derivatives for single currencies and a basket of currencies are included.
— In 6.8, changes have been introduced for the identification of deliverable/non-deliverable for swap
products.
— Rolling foreign exchange spot contracts have been included in 6.11.
Any feedback or questions on this document should be directed to the user’s national standards body. A
complete listing of these bodies can be found at www .iso .org/members .html.
vi © ISO 2019 – All rights reserved
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ISO 10962:redline:2019(E)
Introduction
The classification of financial instruments (CFI) code was developed to address a number of problems
which have concerned the financial community. With the growth of cross-border trading, the
requirement to improve communication of information among market participants has become critical.
The business problems centre around an inability to obtain information on securities due to the lack
of a consistent and uniform approach to grouping financial instruments. With the explosive growth
over the past 20 years in new instruments and features attached to financial instruments, a serious
communication problem has developed.
Many market participants are using similar terminology for instruments having significantly different
features. The problem is compounded when market participants look beyond their own national
markets. They encounter the same words to describe instruments in another country, which have
significantly different features. Where the terminology is in a different language, the market participant
encounters the problem of the same words being applied to different instruments along with the
problems of translation, which also can be misleading.
In addition, the customs and practices of local markets vary considerably in the manner in which
they structure financial instruments, leaving foreign participants confused and perplexed. On careful
analysis, it is often found that the characteristics and features of these instruments are similar to a
domestic instrument. However, most market participants do not have the time and resources to do this
analysis.
The inability to group securities in a consistent manner is another problem encountered by market
participants. Reports of holdings by different sources for similar financial instruments often result
in financial instruments being categorized differently. This not only affects comparability but causes
a credibility issue with the reader. When relative performances are being measured, the ability to
properly categorize holdings is essential if true comparisons are to be made.
The solution envisioned is twofold. One is to establish a series of codes which clearly classify financial
instruments having similar features. The other is to develop a glossary of terms and provide common
definitions which allow market participants to easily understand terminology being used.
The benefits derived are many.:
— The development of these codes will increase the efficiency, reliability, data consistency and
transparency of financial services transactions for both market and reference data. Classifying
financial instruments in a consistent, structured and standardized way is also beneficial for
regulatory reporting requirements.
— The CFI code system provides a set of codes for financial instruments which can be used globally
for Straight Through Processingstraight-through processing by all involved participants in an
electronic data processing environment. AnFor example being, readers of portfolio holdings see
reports from different sources using the same categories, groups and attributesCategories, Groups
and Attributes, making comparison of instruments more credible.
— The broadened scope and coverage of CFI codes encourages market participants to take advantage of
other International Standards, particularly international securities identification numbers (ISINs).
— It is intended that the improved understanding of the characteristics and categorization leads to a
better comprehension of financial instruments. This leads to more active markets and the resulting
improvement in market liquidity. In addition, these codes will be displayed on websites using
internet technology, which has allowed the growth of e-issuing, e-trading and e-settlements.
— The CFI code system can further serve as a basis for classification of financial instruments for
industry risk aggregation and regulatory reporting.
© ISO 2019 – All rights reserved vii
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...
INTERNATIONAL ISO
STANDARD 10962
Fourth edition
2019-10
Securities and related financial
instruments — Classification of
financial instruments (CFI) code
Valeurs mobilières et autres instruments financiers concernés —
Classification des instruments financiers (code CFI)
Reference number
ISO 10962:2019(E)
©
ISO 2019
---------------------- Page: 1 ----------------------
ISO 10962:2019(E)
COPYRIGHT PROTECTED DOCUMENT
© ISO 2019
All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may
be reproduced or utilized otherwise in any form or by any means, electronic or mechanical, including photocopying, or posting
on the internet or an intranet, without prior written permission. Permission can be requested from either ISO at the address
below or ISO’s member body in the country of the requester.
ISO copyright office
CP 401 • Ch. de Blandonnet 8
CH-1214 Vernier, Geneva
Phone: +41 22 749 01 11
Fax: +41 22 749 09 47
Email: copyright@iso.org
Website: www.iso.org
Published in Switzerland
ii © ISO 2019 – All rights reserved
---------------------- Page: 2 ----------------------
ISO 10962:2019(E)
Contents Page
Foreword .vi
Introduction .vii
1 Scope . 1
2 Normative references . 1
3 Terms and definitions . 1
4 Conventions and principles . 1
5 CFI allocation . 2
5.1 General . 2
5.2 Existing CFIs and existing securities without a CFI . 3
6 Codes and definitions . 3
6.1 Categories . 3
6.2 Equities - E-*-*-*-*-*- . 3
6.2.1 Description . . . 3
6.2.2 Common/ordinary shares - E-S-*-*-*-*- . 4
6.2.3 Preferred/preference shares - E-P-*-*-*-*- . 5
6.2.4 Common/ordinary convertible shares - E-C-*-*-*-*- . 6
6.2.5 Preferred/preference convertible shares - E-F-*-*-*-*- . 6
6.2.6 Limited partnership units - E-L-*-*-*-*- . . 7
6.2.7 Depositary receipts on equities - E-D-*-*-*-*- . 8
6.2.8 Structured instruments (participation) - E-Y-*-*-*-*- . 8
6.2.9 Others (miscellaneous) - E-M-X-X-X-*- .10
6.3 CIVs - C-*-*-*-*-*- .10
6.3.1 Description . . .10
6.3.2 Standard (vanilla) investment funds/mutual funds - C-I-*-*-*-*- .11
6.3.3 Hedge funds - C-H-*-X-X-X- .12
6.3.4 REITs - C-B-*-*-X-*-.12
6.3.5 ETFs - C-E-*-*-*-*- .13
6.3.6 Pension funds - C-S-*-*-*-*- .14
6.3.7 Funds of funds - C-F-*-*-*-*- .14
6.3.8 Private equity funds - C-P-*-*-*-*- .15
6.3.9 Others (miscellaneous) - C-M-X-X-X-*-.15
6.4 Debt instruments - D-*-*-*-*-*- .16
6.4.1 Description . . .16
6.4.2 Bonds - D-B-*-*-*-*- .16
6.4.3 Convertible bonds - D-C-*-*-*-*- .18
6.4.4 Bonds with warrants attached - D-W-*-*-*-*- .19
6.4.5 Medium term notes - D-T-*-*-*-*- .20
6.4.6 Money market instruments - D-Y-*-*-X-*- .21
6.4.7 Structured instruments (capital protection) - D-S-*-*-*-*- .21
6.4.8 Structured instruments (without capital protection) - D-E-*-*-*-*- .23
6.4.9 Mortgage-backed securities - D-G-*-*-*-*- .25
6.4.10 Asset-backed securities - D-A-*-*-*-*- .26
6.4.11 Municipal bonds - D-N-*-*-*-*- .27
6.4.12 Depositary receipts on debt instruments - D-D-*-*-*-*- .28
6.4.13 Others (miscellaneous) - D-M-*-X-X-*- .29
6.5 Entitlements (rights) - R-*-*-*-*-*- .29
6.5.1 Description . . .29
6.5.2 Allotment (bonus) rights - R-A-X-X-X-*- .29
6.5.3 Subscription rights - R-S-*-X-X-*- .30
6.5.4 Purchase rights - R-P-*-X-X-*- .30
6.5.5 Warrants - R-W-*-*-*-*- .31
6.5.6 Mini-future certificates/constant leverage certificates - R-F-*-*-*-*- .32
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ISO 10962:2019(E)
6.5.7 Depositary receipts on entitlements - R-D-*-X-X-*- .32
6.5.8 Others (miscellaneous) - R-M-X-X-X-X- .33
6.6 Listed options - O-*-*-*-*-*- .33
6.6.1 Description . . .33
6.6.2 Call options - O-C-*-*-*-*- .33
6.6.3 Put options - O-P-*-*-*-*- .34
6.6.4 Others (miscellaneous) - O-M-X-X-X-X- .35
6.7 Futures - F-*-*-*-*-X- .35
6.7.1 Description . . .35
6.7.2 Financial futures - F-F-*-*-*-X- .35
6.7.3 Commodities futures - F-C-*-*-*-X- .36
6.8 Swaps - S-*-*-*-*-*- .37
6.8.1 Description . . .37
6.8.2 Rates - S-R-*-*-*-*- .37
6.8.3 Commodities - S-T-*-*-X-*- .38
6.8.4 Equity - S-E-*-*-X-*- .40
6.8.5 Credit - S-C-*-*-*-*- . .40
6.8.6 Foreign exchange - S-F-*-X-X-*- .41
6.8.7 Others (miscellaneous) - S-M-*-X-X-*- .42
6.9 Non-listed and complex listed options - H-*-*-*-*-*- .42
6.9.1 Description . . .42
6.9.2 Rates - H-R-*-*-*-*- .43
6.9.3 Commodities - H-T-*-*-*-*- .45
6.9.4 Equity - H-E-*-*-*-*- .46
6.9.5 Credit - H-C-*-*-*-*- .47
6.9.6 Foreign exchange - H-F-*-*-*-*- .48
6.9.7 Others (miscellaneous) - H-M-*-*-*-*- .49
6.10 Spot - I-*-*-X-X-*- .50
6.10.1 Description . . .50
6.10.2 Foreign exchange - I-F-X-X-X-P- .50
6.10.3 Commodities - I-T-*-X-X-X- .50
6.11 Forwards - J-*-*-X-*-*- .51
6.11.1 Description . . .51
6.11.2 Equity - J-E-*-X-*-*- .51
6.11.3 Foreign exchange - J-F-*-X-*-*- .52
6.11.4 Credit - J-C-*-X-*-*- .52
6.11.5 Rates - J-R-*-X-*-*- .53
6.11.6 Commodities - J-T-*-X-*-*- .53
6.12 Strategies - K-*-X-X-X-X- .54
6.12.1 Description . . .54
6.12.2 Rates - K-R-X-X-X-X- .54
6.12.3 Commodities - K-T-X-X-X-X- .55
6.12.4 Equity - K-E-X-X-X-X- .55
6.12.5 Credit - K-C-X-X-X-X- .55
6.12.6 Foreign exchange - K-F-X-X-X-X- .55
6.12.7 Mixed assets - K-Y-X-X-X-X- .56
6.12.8 Others (miscellaneous) - K-M-X-X-X-X- .56
6.13 Financing - L-*-*-*-X-*- .56
6.13.1 Description . . .56
6.13.2 Loan-lease - L-L-*-X-X-*- .56
6.13.3 Repurchase agreements - L-R-*-*-X-*- .57
6.13.4 Securities lending - L-S-*-*-X-*- .57
6.14 Referential instruments - T-*-*-*-*-X- .58
6.14.1 Description . . .58
6.14.2 Currencies - T-C-*-X-X-X- .58
6.14.3 Commodities - T-T-*-X-X-X- .59
6.14.4 Interest rates - T-R-*-*-X-X- . .59
6.14.5 Indices - T-I-*-*-*-X- .60
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ISO 10962:2019(E)
6.14.6 Baskets - T-B-*-X-X-X- . .61
6.14.7 Stock dividends - T-D-*-X-X-X- .62
6.14.8 Others (miscellaneous) - T-M-X-X-X-X- .62
6.15 Others (miscellaneous) - M-*-*-*-X-*- .62
6.15.1 Description . . .62
6.15.2 Combined instruments - M-C-*-*-X-*- .62
6.15.3 Other assets - M-M-*-X-X-X- .63
Annex A (informative) Classification examples.64
Bibliography .71
© ISO 2019 – All rights reserved v
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ISO 10962:2019(E)
Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies (ISO member bodies). The work of preparing International Standards is normally carried out
through ISO technical committees. Each member body interested in a subject for which a technical
committee has been established has the right to be represented on that committee. International
organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.
ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of
electrotechnical standardization.
The procedures used to develop this document and those intended for its further maintenance are
described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the
different types of ISO documents should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www .iso .org/directives).
Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of
any patent rights identified during the development of the document will be in the Introduction and/or
on the ISO list of patent declarations received (see www .iso .org/patents).
Any trade name used in this document is information given for the convenience of users and does not
constitute an endorsement.
For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and
expressions related to conformity assessment, as well as information about ISO's adherence to
the World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT), see
www .iso .org/iso/foreword .html.
This document was prepared by Technical Committee ISO/TC 68, Financial services, Subcommittee SC 8,
Reference data for financial services.
This fourth edition cancels and replaces the third edition (ISO 10962:2015) which has been technically
revised. The main changes to the previous edition are as follows:
— To address industry requirements for the classification of derivative instruments, 6.8, 6.9 and
6.11 have been amended, where the support for multi-commodity derivatives, the addition of
exercise styles not connected to option type (put or call) and the ability to classify foreign exchange
derivatives for single currencies and a basket of currencies are included.
— In 6.8, changes have been introduced for the identification of deliverable/non-deliverable for swap
products.
— Rolling foreign exchange spot contracts have been included in 6.11.
Any feedback or questions on this document should be directed to the user’s national standards body. A
complete listing of these bodies can be found at www .iso .org/members .html.
vi © ISO 2019 – All rights reserved
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ISO 10962:2019(E)
Introduction
The classification of financial instruments (CFI) code was developed to address a number of problems
which have concerned the financial community. With the growth of cross-border trading, the
requirement to improve communication of information among market participants has become critical.
The business problems centre around an inability to obtain information on securities due to the lack
of a consistent and uniform approach to grouping financial instruments. With the explosive growth
over the past 20 years in new instruments and features attached to financial instruments, a serious
communication problem has developed.
Many market participants are using similar terminology for instruments having significantly different
features. The problem is compounded when market participants look beyond their own national
markets. They encounter the same words to describe instruments in another country, which have
significantly different features. Where the terminology is in a different language, the market participant
encounters the problem of the same words being applied to different instruments along with the
problems of translation, which also can be misleading.
In addition, the customs and practices of local markets vary considerably in the manner in which
they structure financial instruments, leaving foreign participants confused and perplexed. On careful
analysis, it is often found that the characteristics and features of these instruments are similar to a
domestic instrument. However, most market participants do not have the time and resources to do this
analysis.
The inability to group securities in a consistent manner is another problem encountered by market
participants. Reports of holdings by different sources for similar financial instruments often result
in financial instruments being categorized differently. This not only affects comparability but causes
a credibility issue with the reader. When relative performances are being measured, the ability to
properly categorize holdings is essential if true comparisons are to be made.
The solution envisioned is twofold. One is to establish a series of codes which clearly classify financial
instruments having similar features. The other is to develop a glossary of terms and provide common
definitions which allow market participants to easily understand terminology being used.
The benefits derived are many:
— The development of these codes will increase the efficiency, reliability, data consistency and
transparency of financial services transactions for both market and reference data. Classifying
financial instruments in a consistent, structured and standardized way is also beneficial for
regulatory reporting requirements.
— The CFI code system provides a set of codes for financial instruments which can be used globally
for straight-through processing by all involved participants in an electronic data processing
environment. For example, readers of portfolio holdings see reports from different sources using
the same Categories, Groups and Attributes, making comparison of instruments more credible.
— The broadened scope and coverage of CFI codes encourages market participants to take advantage of
other International Standards, particularly international securities identification numbers (ISINs).
— It is intended that the improved understanding of the characteristics and categorization leads to a
better comprehension of financial instruments. This leads to more active markets and the resulting
improvement in market liquidity. In addition, these codes will be displayed on websites using
internet technology, which has allowed the growth of e-issuing, e-trading and e-settlements.
— The CFI code system can further serve as a basis for classification of financial instruments for
industry risk aggregation and regulatory reporting.
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INTERNATIONAL STANDARD ISO 10962:2019(E)
Securities and related financial instruments —
Classification of financial instruments (CFI) code
1 Scope
This document defines and describes codes for an internationally valid system to classify financial
instruments. The classification system applies to financial instruments negotiated internationally as
well as to domestic instruments. The term “financial instruments” refers not only to classical securities,
but also covers the innovative financial products that have emerged in different markets (a trend that is
expected to continue in the future).
This document is intended for use in any application in the trading and administration of securities in
the international securities business. In so far as the trading and the administration of securities do
not affect other countries, the application of this document remain
...
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