Key Takeaways
- Unique numeric ID for Swiss securities.
- 6-9 digit codes, no embedded meaning.
- Used for trading, settlement, compliance.
- Forms part of Swiss ISIN codes.
What is Valoren Number?
A Valoren Number is a unique numeric identifier assigned to securities and financial instruments primarily in Switzerland, serving a similar role to the CUSIP in North America or WKN in Germany. These numbers are issued by SIX Financial Information and are essential for identifying, trading, and settling Swiss-listed instruments within the value chain of the Swiss financial market.
This identifier facilitates smooth cross-border transactions, reporting, and data management for investors and institutions alike.
Key Characteristics
Valoren Numbers have distinct features that make them integral to Swiss finance:
- Numeric Format: Composed purely of 6 to 9 digits without embedded meaning or classification.
- Wide Coverage: Applies to stocks, bonds, derivatives, funds, and structured products, including those listed on exchanges like SIX Swiss Exchange.
- Sequential Issuance: Numbers are allocated sequentially without semantic significance when new instruments qualify.
- Local Terminology: Known locally as “VALOR Nummer,” derived from Swiss German for "security" (Obligation).
- Recycling for Derivatives: Numbers for expired derivatives may be reused to optimize the numbering system.
How It Works
Valoren Numbers streamline the identification process by acting as a standardized code used across trading, settlement, and regulatory reporting in Switzerland. When a financial instrument is issued, SIX Financial Information assigns a Valoren that brokers, custodians, and investors use to ensure data accuracy and operational efficiency.
These numbers are embedded in financial databases and statements, allowing quick retrieval of price quotes, historical data, and transaction details. In addition, the Valoren forms the National Securities Identification Number (NSIN) component of Swiss ISINs, linking local and global identification standards seamlessly.
Examples and Use Cases
Valoren Numbers are widely applied across various instruments and institutions:
- Stocks: Investors use the Valoren for real-time quotes and trade executions on companies like Delta, facilitating efficient market operations.
- Bonds: Custodians reference Valoren in statements for fixed income instruments, ensuring accurate settlement; for example, a Zurich-listed bond might use a longer Valoren code alongside its ISIN.
- ETFs: Cross-border ETFs with Swiss holdings rely on Valoren for compliance and data management, similar to listings covered in the best ETFs guides.
- Funds and Structured Products: The unique Valoren enables precise identification critical for regulatory reporting and portfolio analytics, supported by data analytics tools.
Important Considerations
While Valoren Numbers are indispensable within Swiss finance, they have limitations. For instance, unlike the permanent ISIN, some Valoren for derivatives are recycled, so historical tracking requires careful cross-referencing.
Additionally, as they contain no embedded information, you must rely on linked identifiers like ISIN or market codes to fully understand the instrument’s nature. Integrating Valoren with global standards enhances your ability to navigate complex cross-border trades efficiently.
Final Words
Valoren numbers provide a critical, standardized way to identify Swiss securities across trading, settlement, and reporting processes. To ensure accuracy in your Swiss investments or data management, verify Valoren numbers when reviewing securities information or executing trades.
Frequently Asked Questions
A Valoren Number is a unique numeric identifier assigned to securities and financial instruments in Switzerland. It functions similarly to CUSIP in North America and is used for trading, settlement, and identification within the Swiss financial ecosystem.
Valoren Numbers are purely numeric and typically range from 6 to 9 digits in length. They do not contain any embedded meaning related to the security type.
Valoren Numbers are issued by SIX Financial Information, a subsidiary of SIX Group, which manages their allocation for Swiss financial instruments.
Valoren Numbers cover a wide range of instruments including stocks, bonds, derivatives, funds, structured products, equities, and fixed income securities in Switzerland.
They facilitate trading and settlement by enabling accurate order placement, trade execution, and ownership transfer. They also support data management, reporting, compliance, and regulatory processes.
Yes, Valoren Numbers form the National Securities Identification Number (NSIN) part of Swiss ISINs. For example, a Swiss ISIN starts with 'CH' followed by the 9-digit Valoren Number plus a check digit.
Yes, Valoren Numbers assigned to derivatives may be reused after the derivative has expired, ensuring efficient use of the numbering system.
Valoren Numbers are Switzerland’s unique numeric identifiers similar to CUSIP in North America and WKN in Germany. While CUSIPs use 9 characters including letters, Valoren Numbers are purely numeric and between 6 to 9 digits.
