Valoren Number What it Means How it Works

Valoren Number What it Means How it Works

Valoren Number: Meaning and Function

What Is a Valoren Number?

A valoren number is an identification assigned to financial instruments in Switzerland, similar to CUSIP numbers in Canada and the U.S. It consists of six to nine digits.

How a Valoren Number Works

A valoren number is a numeric code with no inherent meaning. When a new valoren is required, the next one from the list is allocated. It does not provide information about the instrument itself. Market data firms and financial institutions in Europe store and refer to Swiss companies using valoren numbers for secure identification. Valoren numbers do not contain any embedded data, unlike ISINs or CUSIPs.

SIX Financial Information, a subsidiary of SIX Group, based in Zurich, Switzerland, issues Swiss valoren numbers. It collects real-time market data from major trading venues worldwide. Its database holds structured and encoded administration data for over 20 million financial instruments.

SIX Financial Information was formerly known as Telekurs and underwent restructuring in 1996. It expanded its product range and acquired part of the Fininfo Group in 2007. In 2008, the company merged with SWX Group, SIS Swiss Financial Services Group, and SEGA Intersettle to form SIX Group. The Financial Information division of SIX Group was renamed as SIX Telekurs.

A valoren number can serve various purposes in identifying financial instruments. It is globally allocated to any eligible instrument and can be combined with the Market Identifier Code (MIC) and currency code for unique identification. It also facilitates transaction reporting and position keeping.

In Switzerland and Liechtenstein, the valoren number is the primary identifier in the Swiss Value Chain, used by financial institutions across the region and beyond. For derivatives, valoren numbers may be reused after expiry.

READ MORE  Truth in Lending Act TILA Consumer Protections and Disclosures

Leave a Reply

Your email address will not be published. Required fields are marked *