What Is a Valoren Number?
A Valoren number is a robust identification code assigned specifically to financial instruments within Switzerland. These codes function similarly to CUSIP numbers in Canada and the U.S., often ranging between six to nine digits in length.
Uncovering the Mechanics of Valoren Numbers
A Valoren number is essentially a sequence of digits devoid of intrinsic information. These numbers are incrementally assigned from an available list without encoding any data about the instrument itself. Financial institutions and market data firms throughout Europe use Valoren numbers as a practical, streamlined approach to marking Swiss securities.
Unlike ISINs or CUSIPs, Valoren numbers do not carry embedded data and rely purely on their sequential allocation. They are widely used by firms and financial institutions to refer to, track, and store trade data about Swiss companies securely.
Issuance by SIX Financial Information
Valoren numbers in Switzerland are issued by SIX Financial Information, a significant player in the financial data space and a subsidiary of SIX Group based in Zurich, Switzerland. This company, with a global presence in over 20 countries, offers comprehensive real-time market data collected straight from major international trading venues. The core service of SIX Financial Information includes organizing and encoding administrative data for over 20 million financial instruments.
Initially known as Telekurs, the firm underwent restructuring and rebranding in 1996 to broaden its product offerings. After several mergers and acquisitions, including acquiring part of the Fininfo Group and merging with other significant financial service groups to become SIX Group in 2008, the firm was rebranded to SIX Telekurs and later phased out the ‘Telekurs’ name in 2012.
Applications and Significance of Valoren Numbers
Valoren numbers serve multiple functions in the identification and trade of financial instruments. Globally allocated under strict rules, they identify any type of financial instrument and can work alongside the Market Identifier Code (MIC) and currency code, providing a unique fingerprint for securities. They are critical for transaction reporting and maintaining accurate financial positions.
In Switzerland and Liechtenstein, these numbers play a pivotal role in the Swiss Value Chain. They act as the primary identifier for financial institutions across these regions. Post-expiry, Valoren numbers allocated to derivatives may be reused, ensuring efficient number utilization.
Related Terms: CUSIP, ISIN, Market Identifier Code (MIC), financial instruments.
