ISO 10962:2019

INTERNATIONAL ISO
STANDARD 10962
Redline version
compares Fourth edition to
Third edition
Securities and related financial
instruments — Classification of
financial instruments (CFI) code
Valeurs mobilières et autres instruments financiers concernés —
Classification des instruments financiers (code CFI)
Reference number
ISO 10962:redline:2019(E)
©
ISO 2019

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ISO 10962:redline:2019(E)

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This marked-up version highlights the main changes in this edition of the document
compared with the previous edition. It does not focus on details (e.g. changes in
punctuation).
This marked-up version does not constitute the official ISO document and is not intended to
be used for implementation purposes.
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ISO 10962:redline:2019(E)

Contents Page
Foreword .vi
Introduction .vii
1 Scope . 1
2 Normative references . 1
3 Terms and definitions . 1
3 4 Conventions and principles . 1
4 5 CFI allocation . 3
4.1 5.1 General . 3
4.2 5.2 Existing CFIs and existing securities without a CFI . 3
5 6 Codes and definitions . 3
5.1 6.1 Categories . 3
5.2 6.2 Equities - E-*-*-*-*-*- . 4
5.2.1 6.2.1 Description . 4
5.2.2 6.2.2 Common/ordinary shares - E-S-*-*-*-*-. 5
5.2.3 6.2.3 Preferred/preference shares - E-P-*-*-*-*-. 6
5.2.4 6.2.4 Common/ordinary convertible shares - E-C-*-*-*-*- . 8
5.2.5 6.2.5 Preferred/preference convertible shares - E-F-*-*-*-*- . 9
5.2.6 6.2.6 Limited partnership units - E-L-*-*-*-*- .10
5.2.7 6.2.7 Depositary receipts on equities - E-D-*-*-*-*- .11
5.2.8 6.2.8 Structured instruments (participation) - E-Y-*-*-*-*- .12
5.2.9 6.2.9 Others (miscellaneous) - E-M-X-X-X-*- .15
5.3 6.3 Collective investment vehicles CIVs - C-*-*-*-*-*- .16
5.3.1 6.3.1 Description .16
5.3.2 6.3.2 Standard (vanilla) investment funds/mutual funds - C-I-*-*-*-*- . .16
5.3.3 6.3.3 Hedge funds - C-H-*-X-X-X- .18
5.3.4 6.3.4 Real estate investment trusts (REIT) REITs - C-B-*-*-X-*- .20
5.3.5 6.3.5 Exchange traded funds (ETF) ETFs - C-E-*-*-*-*- .20
5.3.6 6.3.6 Pension funds - C-S-*-*-*-*- .22
5.3.7 6.3.7 Funds of funds - C-F-*-*-*-*- .22
5.3.8 6.3.8 Private equity funds - C-P-*-*-*-*- .23
5.3.9 6.3.9 Others (miscellaneous) - C-M-X-X-X-*- .25
5.4 6.4 Debt instruments - D-*-*-*-*-*- .25
5.4.1 6.4.1 Description .25
5.4.2 6.4.2 Bonds - D-B-*-*-*-*- .26
5.4.3 6.4.3 Convertible bonds - D-C-*-*-*-*- .29
5.4.4 6.4.4 Bonds with warrants attached - D-W-*-*-*-*- .31
5.4.5 6.4.5 Medium term notes - D-T-*-*-*-*- .33
5.4.6 6.4.6 Money market instruments - D-Y-*-*-X-*- .34
5.4.7 6.4.7 Structured instruments (capital protection) - D-S-*-*-*-*- .36
5.4.8 6.4.8 Structured instruments (without capital protection) - D-E-*-*-*-*- .38
5.4.9 6.4.9 Mortgage-backed securities - D-G-*-*-*-*- .41
5.4.10 6.4.10 Asset-backed securities - D-A-*-*-*-*- .43
5.4.11 6.4.11 Municipal bonds - D-N-*-*-*-*- .45
5.4.12 6.4.12 Depositary receipts on debt instruments - D-D-*-*-*-*- .47
5.4.13 6.4.13 Others (miscellaneous) - D-M-*-X-X-*- .49
5.5 6.5 Entitlements (rights) - R-*-*-*-*-*- .49
5.5.1 6.5.1 Description .49
5.5.2 6.5.2 Allotment (bonus) rights - R-A-X-X-X-*- .50
5.5.3 6.5.3 Subscription rights - R-S-*-X-X-*- .50
5.5.4 6.5.4 Purchase rights - R-P-*-X-X-*- .51
5.5.5 6.5.5 Warrants - R-W-*-*-*-*- .52
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ISO 10962:redline:2019(E)

5.5.6 6.5.6 Mini-future certificates/constant leverage certificates - R-F-*-*-*-*- . .54
5.5.7 6.5.7 Depositary receipts on entitlements - R-D-*-X-X-*- .55
5.5.8 6.5.8 Others (miscellaneous) - R-M-X-X-X-X- .56
5.6 6.6 Listed options - O-*-*-*-*-*- .56
5.6.1 6.6.1 Description .56
5.6.2 6.6.2 Call options - O-C-*-*-*-*- .56
5.6.3 6.6.3 Put options - O-P-*-*-*-*- .58
5.6.4 6.6.4 Others (miscellaneous) - O-M-X-X-X-X- .59
5.7 6.7 Futures - F-*-*-*-*-X- .60
5.7.1 6.7.1 Description .60
5.7.2 6.7.2 Financial futures - F-F-*-*-*-X- .60
5.7.3 6.7.3 Commodities futures - F-C-*-*-*-X- .61
5.8 6.8 Swaps - S-*-*-*-*-*- .62
5.8.1 6.8.1 Description .62
5.8.2 6.8.2 Rates - S-R-*-*-*-*- .62
5.8.3 6.8.3 Commodities - S-T-*-*-X-*- .65
5.8.4 6.8.4 Equity - S-E-*-*-X-*- .67
5.8.5 6.8.5 Credit - S-C-*-*-*-*- .68
5.8.6 6.8.6 Foreign exchange - S-F-*-X-X-*- .70
5.8.7 6.8.7 Others (miscellaneous) - S-M-*-X-X-*- .71
5.9 6.9 Non-listed and complex listed options - H-*-*-*-*-*- .72
5.9.1 6.9.1 Description .72
5.9.2 6.9.2 Rates - H-R-*-*-*-*- .72
5.9.3 6.9.3 Commodities - H-T-*-*-*-*- .76
5.9.4 6.9.4 Equity - H-E-*-*-*-*- . .78
5.9.5 6.9.5 Credit - H-C-*-*-*-*- .80
5.9.6 6.9.6 Foreign exchange - H-F-*-*-*-*- .81
5.9.7 6.9.7 Others (miscellaneous) - H-M-*-*-*-*- .83
5.10 6.10 Spot - I-*-*-X-X-*- .85
5.10.1 6.10.1 Description .85
5.10.2 6.10.2 Foreign exchange - I-F-X-X-X-P- .85
5.10.3 6.10.3 Commodities - I-T-*-X-X-X- .85
5.11 6.11 Forwards - J-*-*-X-*-*- .86
5.11.1 6.11.1 Description .86
5.11.2 6.11.2 Equity - J-E-*-X-*-*- .86
5.11.3 6.11.3 Foreign exchange - J-F-*-X-*-*- .87
5.11.4 6.11.4 Credit - J-C-*-X-*-*- .88
5.11.5 6.11.5 Rates - J-R-*-X-*-*- .89
5.11.6 6.11.6 Commodities - J-T-*-X-*-*- .90
5.12 6.12 Strategies - K-*-X-X-X-X- .91
5.12.1 6.12.1 Description .91
5.12.2 6.12.2 Rates - K-R-X-X-X-X- .91
5.12.3 6.12.3 Commodities - K-T-X-X-X-X- .92
5.12.4 6.12.4 Equity - K-E-X-X-X-X-.92
5.12.5 6.12.5 Credit - K-C-X-X-X-X- .92
5.12.6 6.12.6 Foreign exchange - K-F-X-X-X-X- .93
5.12.7 6.12.7 Mixed assets - K-Y-X-X-X-X- .93
5.12.8 6.12.8 Others (miscellaneous) - K-M-X-X-X-X- .93
5.13 6.13 Financing - L-*-*-*-X-*- .94
5.13.1 6.13.1 Description .94
5.13.2 6.13.2 Loan-lease - L-L-*-X-X-*- .94
5.13.3 6.13.3 Repurchase agreements - L-R-*-*-X-*- .95
5.13.4 6.13.4 Securities lending - L-S-*-*-X-*- .96
5.14 6.14 Referential instruments - T-*-*-*-*-X-.97
5.14.1 6.14.1 Description .97
5.14.2 6.14.2 Currencies - T-C-*-X-X-X- .98
5.14.3 6.14.3 Commodities - T-T-*-X-X-X- .98
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ISO 10962:redline:2019(E)

5.14.4 6.14.4 Interest rates - T-R-*-*-X-X- .99
5.14.5 6.14.5 Indices - T-I-*-*-*-X- .100
5.14.6 6.14.6 Baskets - T-B-*-X-X-X- .102
5.14.7 6.14.7 Stock dividends - T-D-*-X-X-X- .102
5.14.8 6.14.8 Others (miscellaneous) - T-M-X-X-X-X- .103
5.15 6.15 Others (miscellaneous) - M-*-*-*-X-*- .103
5.15.1 6.15.1 Description .103
5.15.2 6.15.2 Combined instruments - M-C-*-*-X-*- .103
5.15.3 6.15.3 Other assets - M-M-*-X-X-X- .104
Annex A (informative) Classification examples.106
Bibliography .113
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ISO 10962:redline:2019(E)

Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
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described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the
different types of ISO documents should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www .iso .org/directiveswww .iso .org/directives).
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For an explanation on theof the voluntary nature of standards, the meaning of ISO specific
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ISO's adherence to the WTOWorld Trade Organization (WTO) principles in the Technical
Barriers to Trade (TBT) see the following URL: , see Foreword - Supplementary information
www .iso .org/iso/foreword .html.
The committee responsible for this document isThis document was prepared by Technical Committee
ISO/TC 68, Financial services, Subcommittee SC 48, Securities and related financial instrumentsReference
data for financial services.
This thirdfourth edition cancels and replaces the secondthird edition (ISO 10962:20012015) which
has been extended to cover necessary technical changes.technically revised. The main changes to the
previous edition are as follows:
— To address industry requirements for the classification of derivative instruments, 6.8, 6.9 and
6.11 have been amended, where the support for multi-commodity derivatives, the addition of
exercise styles not connected to option type (put or call) and the ability to classify foreign exchange
derivatives for single currencies and a basket of currencies are included.
— In 6.8, changes have been introduced for the identification of deliverable/non-deliverable for swap
products.
— Rolling foreign exchange spot contracts have been included in 6.11.
Any feedback or questions on this document should be directed to the user’s national standards body. A
complete listing of these bodies can be found at www .iso .org/members .html.
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ISO 10962:redline:2019(E)

Introduction
The classification of financial instruments (CFI) code was developed to address a number of problems
which have concerned the financial community. With the growth of cross-border trading, the
requirement to improve communication of information among market participants has become critical.
The business problems centre around an inability to obtain information on securities due to the lack
of a consistent and uniform approach to grouping financial instruments. With the explosive growth
over the past 20 years in new instruments and features attached to financial instruments, a serious
communication problem has developed.
Many market participants are using similar terminology for instruments having significantly different
features. The problem is compounded when market participants look beyond their own national
markets. They encounter the same words to describe instruments in another country, which have
significantly different features. Where the terminology is in a different language, the market participant
encounters the problem of the same words being applied to different instruments along with the
problems of translation, which also can be misleading.
In addition, the customs and practices of local markets vary considerably in the manner in which
they structure financial instruments, leaving foreign participants confused and perplexed. On careful
analysis, it is often found that the characteristics and features of these instruments are similar to a
domestic instrument. However, most market participants do not have the time and resources to do this
analysis.
The inability to group securities in a consistent manner is another problem encountered by market
participants. Reports of holdings by different sources for similar financial instruments often result
in financial instruments being categorized differently. This not only affects comparability but causes
a credibility issue with the reader. When relative performances are being measured, the ability to
properly categorize holdings is essential if true comparisons are to be made.
The solution envisioned is twofold. One is to establish a series of codes which clearly classify financial
instruments having similar features. The other is to develop a glossary of terms and provide common
definitions which allow market participants to easily understand terminology being used.
The benefits derived are many.:
— The development of these codes will increase the efficiency, reliability, data consistency and
transparency of financial services transactions for both market and reference data. Classifying
financial instruments in a consistent, structured and standardized way is also beneficial for
regulatory reporting requirements.
— The CFI code system provides a set of codes for financial instruments which can be used globally
for Straight Through Processingstraight-through processing by all involved participants in an
electronic data processing environment. AnFor example being, readers of portfolio holdings see
reports from different sources using the same categories, groups and attributesCategories, Groups
and Attributes, making comparison of instruments more credible.
— The broadened scope and coverage of CFI codes encourages market participants to take advantage of
other International Standards, particularly international securities identification numbers (ISINs).
— It is intended that the improved understanding of the characteristics and categorization leads to a
better comprehension of financial instruments. This leads to more active markets and the resulting
improvement in market liquidity. In addition, these codes will be displayed on websites using
internet technology, which has allowed the growth of e-issuing, e-trading and e-settlements.
— The CFI code system can further serve as a basis for classification of financial instruments for
industry risk aggregation and regulatory reporting.
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