ISIN Number Structure

ISIN Number Structure

International Securities Identification Number (ISIN)

ISIN Code Structure

There are several key components to an ISIN Number Code as exemplified by the following ISIN code sample: US123456789 (or the three parts as US-12345678-9). The ISIN code can be explained as follows:

• A two-letter country code (such as the “US”), drawn from the International Organization for Standardization, or “ISO”, (ISO 6166). This two letter word code is allocated to the company’s home country or in most cases where the company is domiciled in or may have a corporate headquarter base. For the United States, this is “US”, while, for example, Mexico would be “ME”.
• The second aspect of this 12 ISIN digit code is a 9 digit (always numbers) that is classified as an “identifier”. This identifier is referred to as the National Securities Identifying Number “NSIN”), and is allocated by the specific nation or region, referred to as the National Numbering Agency, or “NNA”. If less than nine digits of the code make up the composition, zeros are added to them, which assist in creating the “NSIN”. As in most cases with such numbers, there is no specific ones that are chosen, but often are concocted randomly through various mathematical algorithm. As noted elsewhere, these identifiers are similar to a social security number for a person, where various ‘life’ information can be found, or in the case of a security, assets of the company an securities.
• The final number of the ISIN code is called a “single check-digit”, and is derived from the foregoing 11 characters or digits and uses what is called a “sum modulo 10 algorithm”. The main reason for this is to counter against illegal copying or counterfeit numbers.
• Euroclear ISIN number: A special alpha numeric code, referred to as “XS”, is employed by various Euroclear agencies that have the power to issue ISIN numbers. The most well know of these ISIN allocators is Euroclear, Clearstream and CEDEL, all of which are clearing firms unto itself and are permitted to grant ISIN numbers. This Euro “XS” is employed for international securities that clear through Euroclear, Clearstream, CEDEL, etc. Such depository receipt ISIN employment is exclusive in that the country code for the security is that of the receipt issuer, not that of the underlying security that one may decide to sell or buy.

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