ISIN and CFI Allocation Purposes
The purpose of allocating ISIN (International Securities Identification Number) and CFI (Classification of Financial Instruments) codes to financial instruments is to standardize identification and ensure uniform classification of both financial instruments negotiated internationally and domestic instruments as part of the common international classification system.
International codes are intended for application in trading and asset management and accounting and constitute essential identifiers and characteristics for clearing and settlement purposes. International codes allocated to financial instruments increase effectiveness, reliability, quality, and transparency of financial transactions and ensure that the details of such transactions are consistent across different systems.
An ISIN is a 12-character alpha-numerical code that does not contain any information characterizing the financial instrument, but serves for uniform identification of the security in the course of trades and securities settlement.
A CFI is a code consisting of six alphabetical characters and containing significant information about the financial instrument (including its type, issue type and form, specific conditions of trading and redemption, and other material rights and characteristics). A CFI is an additional important identifier of the financial instrument.