The ISIN system is already used on most major financial markets. In France it will replace Sicovam codes, making it easier to identify securities, particularly in cross-border transactions, since ISIN assigns each security a single number used in all countries. For Euronext, the switch also represents a further step in harmonizing operations between member markets, since Amsterdam, Brussels and Lisbon have already adopted ISIN.
The new codes will apply to all securities traded on Euronext Paris cash markets, including equities, bonds and structured products (warrants and trackers).
Security identification numbers are used at every stage in order processing, from dissemination of financial data to trading, clearing, settlement and delivery.
Each International Securities Identification Number is a combination of twelve alphanumeric characters, the first two identifying the country of issue (e.g., FR for France).
A steering group representing the French financial community and headed by AFTI, the French association for securities professionals, is working actively to ensure a smooth transition. Tests scheduled in the run-up to June will enable players to implement any necessary changes.
A dedicated internet site will go online in early March at www.euronext.com/isin, and will include a converter for switching between Sicovam and ISIN codes.
Clearnet is the clearing house and central counterparty of equity and derivatives markets operated by Euronext Amsterdam, Brussels and Paris.
Euronext NV is the first pan-European exchange and operates cash and derivatives markets in Amsterdam, Brussels, Lisbon and Paris, as well as Liffe, the international derivatives market based in London.
