03 July 2015

Chris Pickles

Chris Pickles - Consultant

94Posts 219,391Views 17Comments

MiFID and AII: Alternative Instrument Identifier

12 September 2007  |  3296 views  |  0

Just when you thought that you knew how financial instruments are identified, here comes a new way. 

One of the reasons why the MiFID Joint Working Group got started back in April 2005 was so that firms would have as much time as possible to address their MiFID problems.  One of the first problems to be identified was instrument identification – ISINs are great, but the structure of the ISIN standard doesn’t allow all derivatives to be identified uniquely.

Market regulators are going to want transaction reports on all trades on all asset classes.  They have recommended the use of ISINs.  How will they know which instrument is which if you can’t uniquely identify an instrument?  How can you clear and settle off-exchange derivatives trade automatically – STP – if everyone can’t uniquely identify what’s been traded?

At last – for better or worse – a new proposal is now out, coming from the Federation of European Securities Exchanges and driven by the MiFID deadline of 1 November.

The Alternative Instrument Identifier – AII for short.

Not many days to go to the MiFID deadline.

Worth taking some time to look at www.fese.eu.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from Chris

Can you trust Corporate Actions notifications?

05 June 2015  |  3361 views  |  1  |  Recommends 0 TagsSecurityPost-trade & ops

US Financial Transparency Act 2015 - a direction to follow?

21 May 2015  |  4114 views  |  0  |  Recommends 0 TagsRisk & regulationPost-trade & ops

E-Identification is the next major crossroads

11 June 2014  |  1265 views  |  0  |  Recommends 0 TagsSecurityRisk & regulation

Customering - not Banking

10 June 2014  |  1480 views  |  1  |  Recommends 1 TagsMobile & onlineRetail banking

ESMA announces consultations on MiFID II reforms

22 May 2014  |  2837 views  |  0  |  Recommends 1 TagsTrade executionRisk & regulation

Chris's profile

job title Consultant
location England
member since 2009
Summary profile See full profile »
I help organisations that work in the financial sector around the world to understand better how the sector works, how regulations impact the business operations of financial institutions, and how to...

Chris's expertise

What Chris reads
Chris writes about

Who's commenting on Chris's posts

Andrew Chilcott