Valoren Numbers in Switzerland: A Comprehensive Guide

A valoren number is an identification number that is assigned to financial instruments such as stocksStockWhat is a stock? An individual who owns stock in a company is called a shareholder and is eligible to claim part of the company’s residual assets and earnings (should the company ever be dissolved). The terms "stock", "shares", and "equity" are used interchangeably. and bonds trading in Switzerland. The term “valor” is a Swiss-German term that means “security,” and it may include paper money and coins.

Swiss people often use the terms “Valor Number” to refer to a valoren number. Generally, it is six to nine characters and mainly used to identify securities such as stocks and bonds in the Swiss market. It is similar to the CUSIP number, which is assigned to financial instruments in the United States and Canada.

A valoren number is an identification code with no meaning on its own, and no data is implanted in it. When assigning it to an instrument, the next valoren number from the list is allocated.

When ordering a valor number, the ordering company is required to submit – among other things – a term sheet, offer prospectus, share certificate, and a brochure. European companies generally refer to the Swiss corporation using the valoren number as the primary method of identification.

It is mainly utilized in Switzerland, Liechtenstein, and Belgium, and it is used to distinguish recorded securitiesSecurityA security is a financial instrument, typically any financial asset that can be traded. The nature of what can and can’t be called a security generally depends on the jurisdiction in which the assets are being traded. and financial instruments.

Summary

• A valoren number is an identification number used in Switzerland, and it is assigned to financial instruments such as stocks and bonds.
• It is also used as the main financial instrument identifier in Belgium and Liechtenstein.
• The valoren number is issued by SIX Financial Information, a multinational data vendor located in Switzerland.

The Company Behind Valoren Numbers

The company responsible for the issuance of valoren numbers is known as SIX Financial Information, which is the official securities numbering agency in Switzerland, Liechtenstein, and Belgium. This company is also responsible for the issuance of ISIN identifiers in Switzerland, and it is recognized by the Swiss Federal Tax Administration.

The company is a subsidiary of SIX Group, a multinational data vendor with offices around the world, and is headquartered in Zurich, Switzerland. The company collects market data from the major trading exchanges around the globe directly, which it processes and encodes for market use.

SIX group’s database contains data for more than 20 million financial instruments. Its offices are spread out in 23 countries worldwide.

Originally, SIX Financial Information was known as Telekurs, before it was restructured into a holding company to enable the company to increase its list of product offerings. In 2008, Telekurs merged with three other financial services entities in Switzerland to form the SIX Group. The amalgamated entities included SWX Group, SEGA Intersettle, and SIS Swiss Group.

How a Valoren Number is Used

The valoren number is used as the main identifier in the Swiss Value Chain in Switzerland, Liechtenstein, and Belgium. It is also used as the main identifier for financial instruments across the region. A valoren number consists of digits only, and it is part of a 12-digit ISIN number that is used to identify exchange-traded securities.

It is assigned for any financial instrument that meets the allocated rules. It is combined with a market identifier code and a currency code to identify a traded instrument. This combination can also be used in reporting transactions.

What is the CUSIP Number?

CUSIP is an identification number that is assigned to financial instruments such as stocks and bonds, trading in the United States and Canada. The administration of this number is overseen by the CUSIP Committee. The CUSIP is used in computerized record-keeping systems to identify traded securities.

The CUSIP number comprises nine characters, and each of these characters has a meaning. The first six characters in the series identify the bond issuerBond IssuersThere are different types of bond issuers. These bond issuers create bonds to borrow funds from bondholders, to be repaid at maturity., while the 7^th and 8^th numbers identify the type of security being issued. The final 9^th number is known as a check number, and it is computer-generated.

Foreign financial instruments trading in the US are assigned a unique identification number known as CUSIP International Numbering System (CINS). The first letter of a CINS is used to identify the foreign country that issues the bond.

What are ISIN Numbers?

The International Securities Identification Number (ISIN) is a code used to identify specific securities around the world, and it is allocated by each country’s respective National Numbering Agency.

Although most countries have developed a unique identification number for securities, the ISIN is the only securities identification number that is accepted internationally. The number ensures consistency of numbers so that financial instruments can be tracked across global markets.

The ISIN number comprises 12 characters, which includes numbers and letters. The first two digits identify the country where the issuing company is headquartered. The middle nine digits identify the type of security, whereas the final character acts as a check.

The middle nine digits are computer-generated. It helps protect investors against security counterfeits and forgery. For example, a theoretical Canadian company’s stock could be written as follows: CA-432002178-4.

More Resources

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