Valoren Number

In financial markets, accurate security identification is crucial for trading, settlement, and regulatory compliance. One key identifier used in Switzerland is the Valoren number. Issued by SIX Financial Information, this numeric code ensures seamless financial transactions, reduces errors, and enhances transparency.

What is a Valoren Number?

A Valoren number is a unique identifier assigned to financial instruments, including stocks, bonds, derivatives, and mutual funds. It is primarily used in Switzerland and is comparable to:

• CUSIP(North America)
• SEDOL(United Kingdom)
• ISIN(International)

Unlike these identifiers, which may contain embedded meaning or issuer details, Valoren numbers are assigned sequentially without encoding specific information about the security.

Who Issues Valoren Numbers?

SIX Financial Information, a subsidiary of the SIX Group, issues Valoren numbers. This organization also operates the Swiss Stock Exchange (SIX Swiss Exchange) and manages a global securities database.

For Swiss securities, the Valoren number is integrated into the ISIN, which follows this format:
CH + Valoren Number + Check Digit
Example: CH0001234567

While Valoren numbers are primarily assigned to Swiss-issued securities, certain foreign securities traded on Swiss markets may also receive a Valoren number.

Why Are Valoren Numbers Important?

1. Enhancing Trade Efficiency

They ensure that securities are correctly identified and matched during transactions, preventing misidentification issues.

2. Reducing Errors

Valoren numbers help avoid confusion between securities with similar names, reducing costly trading mistakes.

3. Ensuring Market Transparency

They provide investors with a clear and structured method to track securities and manage assets.

4. Aiding Regulatory Compliance

Swiss financial institutions use Valoren numbers to meet FINMA’s (Swiss Financial Market Supervisory Authority) reporting obligations and regulatory requirements.

How Are Valoren Numbers Used?

Trading & Settlement

Financial institutions rely on Valoren numbers to ensure smooth transactions on Swiss and some international exchanges.

Risk Management

Banks, hedge funds, and asset managers use Valoren numbers to track securities within complex portfolios.

Corporate Actions & Reporting

Valoren numbers help facilitate dividend payments, stock splits, and mergers by streamlining record-keeping.

How to Find a Valoren Number?

Investors and financial professionals can locate a Valoren number through:

• SIX Financial Information’s official database
• Brokerage firms and investment platforms
• Financial data providers such as Bloomberg, Refinitiv, and Morningstar

In market databases, Valoren numbers are often listed alongside ISINs and ticker symbols, making them easily accessible.

Valoren Numbers vs. Other Security Identifiers

While ISINs are internationally recognized, Valoren numbers are primarily used within Swiss financial markets.

Real-World Example of Valoren Numbers in Use

A Swiss-based investment firm managing a global equity portfolio needs to distinguish between multiple securities issued by the same company. By using Valoren numbers, the firm:

• Ensures itstrading algorithms execute the correct security.
• Avoids confusion when processingcorporate actions like dividends or stock splits.
• Maintainsaccurate records for regulatory reporting to FINMA.

This example illustrates how Valoren numbers contribute to accurate trade execution and compliance.

Key Takeaways

• Valoren numbers uniquely identify securities primarily in Switzerland.
• They are issued by SIX Financial Information and integrated into ISINs.
• Their primary functions include trade accuracy, error reduction, and regulatory compliance.
• Unlike ISINs, CUSIPs, or SEDOLs, Valoren numbers are purely numeric and assigned sequentially.
• Investors can find Valoren numbers through brokerage firms, financial data providers, and SIX Financial Information.