New ISITC Best Practices Document Establishes Standards for Multi-Listed Securities

Boston, MA - 27 August 2013

  • Developed by ISITC Reference Data and Standards Working Group
  • Addresses identifier guidelines for increasing number of multi-listed securities

ISITC (The International Securities Association for Institutional Trade Communication), the industry trade group focused on standards in transaction processing and related communications, today released a new best practices document outlining suggested identifier solutions for multi-listed securities. Developed by the ISITC Reference Data and Standards Working Group, the best practices document addresses the increasing number of securities listed in multiple venues and how firms can tackle new and existing identifiers for these securities.

ISITC defines multi-listed securities as instruments that are issued on one exchange but are traded on second and subsequent markets and in different currencies. With the proliferating number of multi-listed securities, firms with manually-intensive processes may be challenged with breakdowns in trade communications to service providers and counterparties and greater exposure to settlements failure. The industry is also utilizing numerous security identification numbers but some existing identifiers do not provide the appropriate level of uniqueness which facilitates automation and risk management.

In recognition of the challenges associated with multi-listed securities identifiers, the ISITC Reference Data and Standards Working Group developed a best practices document, reflecting over six months of collaboration between members from across the industry. The living document, which will continue to be updated as discussions progress, provides industry participants with:

  • History and background on multi-listed securities issues
  • The challenges related to potential solutions for multi-listed securities
  • Impacts on ISITC members and broader market participants
  • A thesaurus or glossary of existing identifier acronyms and definition options that firms can utilize
  • ISITC’s stance on multi-listed securities

“The disparity and lack of uniqueness amongst multi-listed securities identifiers has far-reaching impacts on our industry,” comments Tom Brown, Associate Partner at Brook Path Partners and Executive Sponsor of the ISITC Reference Data & Standards Working Group. “Without a proper grasp of the identifier options available to them, financial institutions may experience breakdowns with settlements, corporate actions and reconciliations. We have developed this best practices document to help guide our industry through the range of available solutions. ISITC welcomes industry feedback and participation in the ongoing evolution of this document.”

The ISITC Reference Data and Standards Working Group continues to acknowledge ISIN as the best available, non-proprietary global instrument standard, however the best practices document reviews alternative options that may provide a greater degree of uniqueness for firms depending on their relative investment strategies.

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