International Securities Identification Number

Sebuah International Securities Identification Number (ISIN) atau Nomor Identifikasi Sekuritas Internasional adalah sebuah kode yang secara unik mengidentifikasi sebuah sekuritas secara global dengan tujuan untuk memfasilitasi kliring, pelaporan dan settlement perdagangan. Struktur dari ISIN ditentukan dalam ISO 6166. Kode ISIN adalah sebuah kode 12 karakter alfanumerik yang berfungsi menyeragamkan identifikasi sebuah sekuritas melalui normalisasi Nomor Nasional yang ditentukan, pada saat perdagangan dan settlement.

Sejarah

ISIN pertama kali digunakan di tahun 1981, namun tidak secara umum sampai tahun 1989, ketika negara G30 merekomendasikan pengadopsian ISIN.^[1] ISIN kemudian didukung setahun kemudian oleh ISO dengan standar ISO 6166.

Awalnya informasi didistribusikan melalui CD-ROM dan kemudian digantikan melalui distribusi melalui internet.

Penggunaan dan penerimaan

Sejak 1989 ISIN perlahan mulai mendapatkan perhatian terhadap penggunaannya di seluruh dunia.

ISIN pertama kali diperkenalkan di seluruh dunia dan menjadi identifikasi sekuritas global yang paling populer. Sistem perdagangan, kliring dan settlement di banyak negara mengadopsi ISIN sebagai salah satu cara sekunder dalam mengidentifikasi sekuritas. Beberapa negara, terutama di Eropa, berpindah menggunakan ISIN sebagai cara primer dalam identifikasi sekuritas. Sebagai tambahan, peraturan Uni Eropa seperti Petunjuk Solvabilitas II 2009 meningkatkan penggunaan ISIN untuk pelaporan.^[2]

Pengenalan untuk pelaporan

Di tahun 2004 Uni Eropa memerintahkan penggunaan instrumen identifikasi dalam beberapa pelaporan peraturan, yang memasukkan ISIN sebagai salah satu identifikasi yang valid.^[3]

Deskripsi

ISO 6166 (atau ISO6166:2021 dalam revisi tahun 2021^[4]) mendefinisikan struktur sebuah International Securities Identification Number (ISIN). Sebuah ISIN secara unik mengidentifikasi sebuah sekuritas sepadan.

Sekuritas di mana ISIN digunakan diantaranya:

Ekuitas (saham, unit, struk deposito)

[[
Debt instruments (bonds and debt instruments other than international, international bonds and debt instruments, stripped coupons and principal, treasury bills, others)
Entitlements (rights, warrants)
Derivatives (options, futures)
Others (commodities, currencies, indices, interest rates)

ISINs consist of two alphabetic characters, which are the ISO 3166-1 alpha-2 code for the issuing country, nine alpha-numeric characters (the National Securities Identifying Number, or NSIN, which identifies the security, padded as necessary with leading zeros), and one numerical check digit. They are thus always 12 characters in length. When the NSIN changes due to corporate actions or other reasons, the ISIN will also change. Issuance of ISINs is decentralized to individual national numbering agencies (NNAs). Since existing national numbering schemes administered by the various NNAs form the basis for ISINs, the methodology for assignment is not consistent across agencies globally.

An ISIN cannot specify a particular trading location. Another identifier, typically a MIC (Market Identifier Code) or the three-letter exchange code, will have to be specified in addition to the ISIN for this. The currency of the trade will also be required to uniquely identify the instrument using this method.

Commercial model

The ISIN is generally included in services sold by financial data vendors and intermediaries. These services are normally paid services as more value added data is included with the information. In general, the issuer of a security will include the ISIN in issuance papers or other documentation for identification purposes.

Controversy

In 2009, Standard & Poor's was charged by the European Commission (EC) with abusing its position in licensing international securities identification codes for United States securities by requiring European financial firms and data vendors to pay licensing fees for their use. "This behaviour amounts to unfair pricing," the EC said in its statement of objections which lays the groundwork for an adverse finding against S&P. "The (numbers) are indispensable for a number of operations that financial institutions carry out – for instance, reporting to authorities or clearing and settlement – and cannot be substituted".^[5]^[6]

In 2011, Standard and Poor's provided six undertakings^[7] to the European Commission to remedy the situation. The agreement is applicable to all consuming companies in the European Economic Area. These expired at the end of 2016.

Examples

The examples below describes one approach for applying the Luhn algorithm on two different ISINs. The difference in the two examples has to do with if there are an odd or even number of digits after converting letters to number. Since the NSIN element can be any alpha numeric sequence (9 characters), an odd number of letters will result in an even number of digits and an even number of letters will result in an odd number of digits. For an odd number of digits, the approach in the first example is used. For an even number of digits, the approach in the second example is used. The Luhn algorithm can also be applied in the same manner for both types or lengths (alternating multiply the string of digits by 1 and 2, starting from the end of the string), being more generic.

Apple, Inc.

Apple, Inc.: ISIN US0378331005, expanded from CUSIP 037833100 The main body of the ISIN is the original CUSIP, assigned in the 1970s. The country code "US" has been added on the front, and an additional check digit at the end. The country code indicates the country of issue. The check digit is calculated using the Luhn algorithm.

Convert any letters to numbers by taking the ASCII code of the capital letter and subtracting 55:

U = 30, S = 28. US037833100 -> 30 28 037833100

Collect odd and even characters:

3028037833100 = (3, 2, 0, 7, 3, 1, 0), (0, 8, 3, 8, 3, 0)

Multiply the group containing the rightmost character (which is the FIRST group) by 2:

(6, 4, 0, 14, 6, 2, 0)

Add up the individual digits:

(6 + 4 + 0 + (1 + 4) + 6 + 2 + 0) + (0 + 8 + 3 + 8 + 3 + 0) = 45

Take the 10s modulus of the sum:

45 mod 10 = 5

Subtract from 10:

10 − 5 = 5

Take the 10s modulus of the result (this final step is important in the instance where the modulus of the sum is 0, as the resulting check digit would be 10).

5 mod 10 = 5

So the ISIN check digit is five.

Treasury Corporation of Victoria

TREASURY CORP VICTORIA 5 3/4% 2005-2016: ISIN AU0000XVGZA3. The check digit is calculated using the Luhn algorithm.

Convert any letters to numbers by taking the ASCII code of the capital letter and subtracting 55:

A = 10, G = 16, U = 30, V = 31, X = 33, Z = 35. AU0000XVGZA -> 10 30 0000 33 31 16 35 10.

Collect odd and even characters:

103000003331163510 = (1, 3, 0, 0, 3, 3, 1, 3, 1), (0, 0, 0, 0, 3, 1, 6, 5, 0)

Multiply the group containing the rightmost character (which is the SECOND group) by 2:

(0, 0, 0, 0, 6, 2, 12, 10, 0)

Add up the individual digits:

(1 + 3 + 0 + 0 + 3 + 3 + 1 + 3 + 1) + (0 + 0 + 0 + 0 + 6 + 2 + (1 + 2) + (1 + 0) + 0) = 27

Take the 10s modulus of the sum:

27 mod 10 = 7

Subtract from 10:

10 − 7 = 3

Take the 10s modulus of the result (this final step is important in the instance where the modulus of the sum is 0, as the resulting check digit would be 10).

3 mod 10 = 3

So the ISIN check digit is three.

BAE Systems

BAE Systems: ISIN GB0002634946, expanded from SEDOL 000263494

The main body is the SEDOL, padded on the front with the addition of two zeros. The country code "GB" is then added on the front, and the check digit on the end as in the example above.

Check-digit flaw in ISIN

The Treasury Corporation of Victoria ISIN illustrates a flaw in ISIN's check digit algorithm which allows transposed letters: Suppose the ISIN was mis-typed as AU0000VXGZA3 (instead of AU0000XVGZA3)

A = 10, G = 16, U = 30, V = 31, X = 33, Z = 35. "AU0000VXGZA" -> 10 30 00 00 31 33 16 35 10".

Collect odd and even characters:

103000003133163510 = (1, 3, 0, 0, 3, 3, 1, 3, 1), (0, 0, 0, 0, 1, 3, 6, 5, 0)

Multiply the group containing the rightmost character (which is the SECOND group) by 2:

(0, 0, 0, 0, 2, 6, 12, 10, 0)

Add up the individual digits:

(1 + 3 + 0 + 0 + 3 + 3 + 1 + 3 + 1) + (0 + 0 + 0 + 0 + 2 + 6 + (1 + 2) + (1 + 0) + 0) = 27

Take the 10s modulus of the sum:

27 mod 10 = 7

Subtract from 10:

10 − 7 = 3

Take the 10s modulus of the result (this final step is important in the instance where the modulus of the sum is 0, as the resulting check digit would be 10).

3 mod 10 = 3

So the ISIN check digit is still three even though two letters have been transposed.

Such flaw against a single transposed pair of letters or digits would have been avoided using two check digits instead of just one (i.e., a 97 modulus instead of the 10 modulus, like in IBAN numbers which may also mix letters and digits). Some protocols require the transmission of additional check digits added to the full ISIN number.