What is a Valoren Number?
In the alpine heights of Swiss finance, where efficiency and precision are as revered as their watches, resides the not-so-cryptic Valoren number. A sprightly little identifier, the Valoren number is assigned to financial instruments in Switzerland, much like a digital social security number for securities. Ranging from six to nine digits, these numbers may seem like random figures, but in the realms of finance, they’re the golden keys to data vaults.
How a Valoren Number Works
Imagine a Valoren number as a backstage pass—it doesn’t sing or dance, but it gets you access. Intrinsically, this numeric code is as silent about its identity as a Swiss bank vault. It reveals nothing directly about the financial instrument it identifies. They are simply handed out in sequence—like tickets at a Swiss deli counter.
Managed by SIX Financial Information, these numbers are critical for navigating the complex dance of market data management across European financial landscapes. Whether it’s a suave Swiss company or a humble municipal bond, the Valoren number ensures every player has a part to play.
Unlike the drama-filled identifiers like ISINs or CUSIPs which embed data about the instruments, Valoren numbers prefer the quiet life of obscurity, uttering nothing of the security’s origins or features. Their role? To uniquely tag financial instruments for a variety of procedures including transaction reporting and position keeping.
The Custodians of the Valoren Number
SIX Financial Information stands as the guardian of these identifiers. Evolving from its former guise as Telekurs, this entity has been at the financial information waltz since 1996, adapting and growing, even absorbing parts of the Fininfo Group and merging into the SIX Group dynasty. They ensure that each Valoren number finds its financial instrument pairing, making them as meticulously matched as fondue and white wine.
Practical Uses of a Valoren Number
Beyond their primary kit of uniquely identifying stocks, bonds, and other exotics, Valoren numbers are versatile. In the unique Swiss financial ecosystem, they act as the main identifiers in the Swiss Value Chain, coordinating smoothly within transaction systems. And after the curtain falls on derivatives, these numbers may take a bow and exit, only to reappear for a new role as the cycle continues.
Related Terms
- ISIN (International Securities Identification Number): A global standard for identifying securities.
- CUSIP (Committee on Uniform Securities Identification Procedures): A North American system of security identification.
- SIX Group: The parent organization of SIX Financial Information, a major player in providing detailed financial data.
- Financial Instrument: Any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Suggested Reading
- “Security Identification: A Comparative Guide” by Ima Numbers – Explore the global methods for security identification including Valoren, ISIN, and CUSIP.
- “Swiss Financial Markets: The Role of SIX Group” by Fonda Bonds – Delve into the crucial role played by SIX Group in managing data and securities information in Switzerland.
Delve into the nuanced world of financial identifications with a Valoren number—a testament to Swiss precision in the global financial theater. With a little number crunching, the financial market’s deepest secrets can be as accessible as Swiss chocolate—enjoy a piece!
