Helping determine rules for allocation of ISIN standard to OTC derivative instruments
FIX Trading Community, the non-profit, industry-driven standards body at the heart of global financial trading, is delighted to announce its sponsorship of the ISO Study Group to determine the rules for the allocation of the ISIN standard to derivative instruments.
As part of this effort, FIX is documenting a set of best practices to support the creation and dissemination of the ISIN identifiers amongst market participants using the FIX open standards. The other standards currently being discussed by the Study Group include FpML and multiple ISO standards. FIX is committed to integrating its open standards with both ISO and FpML to ensure maximum inter-operability amongst the standards.
The ISO TC68/SC4/SG2 Study Group on ISIN Allocation for OTC Derivatives was created in response to ESMA requirements for the use of the International Securities Identification Numbering system (ISIN [ISO 6166:2013]) as identifiers for OTC derivative products.
The study group goals extend beyond the ESMA requirements and include the creation of a single global standard identifier for OTC derivatives that can lead to increased operational efficiency, improved risk management and more transparency for both industry and regulators across multiple jurisdictions.
Jim Northey, Americas Chair, Global Technical Committee & Co- Chair High Performance Working Group, FIX Trading Community, Senior Consultant and Industry Standards Liaison, Itiviti and member of the ISO Study Group, noted, “Given the regulatory mandate for the creation of unique product identifiers for derivatives, FIX is delighted to play its part in ensuring a positive engagement between industry and regulators to ensure an optimal solution for all stakeholders”.
Sassan Danesh, Co-Chair OTC Products Committee, FIX Trading Community, Managing Partner, Etrading Software Ltd and member of the ISO Study Group, noted, “We are pleased to work alongside buy-side, sell-side, vendors and regulators to create a harmonised set of interoperable open standards for this critical initiative.”