What Is a Valoren Number?
A valoren number is an identification number assigned to financial instruments in Switzerland. These numbers are like the CUSIP numbers that are utilized in Canada and the U.S. A common valoren number is between six to nine digits long.
How a Valoren Number Works
A valoren number is a numeric code that naturally has no significance. When a new valoren is required, the next one from the rundown is just allocated. An instrument's number doesn't show anything about the instrument itself. Market data firms and other financial institutions all through Europe regularly allude to Swiss companies as well as store trade data on these companies involving valoren numbers for the purpose of security identification. In contrast to ISINs or CUSIPs, valoren numbers have no data embedded in the numbers.
Swiss Valoren numbers are issued by SIX Financial Information, a subsidiary of SIX Group, a global financial data seller situated in Zurich, Switzerland. The company likewise has offices in more than 20 countries. The company gives market data, which it assembles from the world's major trading settings straightforwardly and in real-time. Its database has structured and encoded securities administration data for in excess of 20 million financial instruments.
SIX Financial Information was initially called Telekurs. In 1996, the firm was restructured into a holding company, and it sent off an expansion of its product range. In 2007, Telekurs acquired part of the Fininfo Group. In 2008, The Telekurs Group merged with SWX Group, SIS Swiss Financial Services Group, and SEGA Intersettle to form SIX Group. Telekurs Financial was renamed to SIX Telekurs and turned into the Financial Information division of SIX Group. On April 23, 2012, the utilization of the "Telekurs" name was phased out.
A valoren number can be utilized for a number of purposes in recognizing a financial instrument. Universally, a valoren number is allocated for a financial instrument which meets the allocation rules. It very well may be utilized related to the Market Identifier Code (MIC) and the money code to recognize a traded instrument interestingly. It can likewise be utilized in transaction reporting and for position keeping.
In Switzerland and Liechtenstein, the valoren number is the fundamental identifier in the Swiss Value Chain; it is utilized as the primary identifier by financial institutions all through the region and then some. Valoren numbers for derivatives might be reused after the derivative lapses.