For the purpose of applying the international best practices in developing financial markets, providing whatever to achieve stability and transparency and reassuring dealers in securities, especially those relating to facilitating trading in implementation of its strategy, QFMA (Qatar Financial Markets Authority) signed, on September 24, 2013, a partnership agreement with ANNA (Association of National Numbering Agencies) that exercises issuing and marketing the international number of securities. Upon this agreement, QFMA was authorized for the task of numbering of all domestic securities issued in the state with unified ISIN (International Securities Identification Number) and the CFI (Classification of Financial Instruments code) to have one number for each security used in domestic and foreign trading.
The ISIN consists of a total of 12 characters( alphanumeric), as determined in accordance with the standard (ISO 6166), from left to right, The first two characters are taken up by the alpha-2 country code of the country where the issuer of securities.
The purpose of the ISIN is to Identify and unite the securities to not reflect any characterization of the security in terms of nature, legitimacy, or motion mechanism, that is provided by the CFI which is considered as the classification of securities. The CFI consists of six alphabetical characters (alphanumeric) as determined in accordance with the standard (ISO10962, the first character indicates the highest level of security category (equities - debt instruments ..), the second character indicates specific groups within each category (preferred shares - bonds ..), and the third to sixth character indicate the most important attributes to each group (voting rights - interest rate ..).
All securities listed on Qatar Exchange must have the ISIN and the CFI, but it is optional and not mandatory for other issuers.
Mr. Nasser Ahmed Al Shaibi, CEO of the Qatar Financial Markets Authority, has reiterated the importance of this step forward as it is an integral part of the Authority's continuous efforts to develop the Qatar Market into a center of excellence for financial services and increase investor confidence in line with the Authority's primary objectives. Mr. Al Shaibi has also added that the ISIN and CFI are globally recognized identity for securities and are instrumental in attracting international investors, especially international financial institutions. It also enhances the accurate representation of listed Qatari companies, while reducing any risk of misrepresentation or confusion between similar named entities. The launching of securities numbering is considered a part of the QFMA's steps towards increasing the exposure of the Qatar Capital Market to the International Financial Markets. Moreover, gaining the membership of the International Organization of Securities Commissions (IOSCO) and the upgrade of the Qatar Exchange to Emerging Market status, has secured global recognition of the Qatar Market's regulatory infrastructure encompassing investor protection and risk mitigation.
Mr. Dan Kuhnel Chairman of the Board of Directors of ANNA said we are delighted with the developments that have taken place within Qatar which have led to the adoption of the International standards (ISIN and CFI) within the Qatar financial market. I would like to thank the QFMA for partnering with ANNA and promoting the use of ISO standards to further improve market efficiency.
Accordingly, it was decided that the ISINs already allocated to the securities will remain valid. The QFMA will take the responsibility of issuing the ISIN for the new numbering applications, in addition to the CFI code for the existing securities and the securities will be applied for numbering.
About Qatar Financial Markets Authority (QFMA) and Association of National Numbering Agencies (ANNA)
About QFMA
Qatar Financial Markets Authority (QFMA) was established under Law No. 33 of 2005 as an independent regulatory authority to supervise the financial markets and companies licensed to conduct activities related to securities in the State of Qatar, and empowered to exercise regulatory and executive oversight over the capital markets. Recently, the QFMA new law No. 8 of 2012 has been issued to give the QFMA wider responsibilities and obligations to supervise and monitor the securities industry in the State of Qatar and increase the scope of international cooperation.
In pursuant of its objectives, the QFMA has been enhancing its regulatory infrastructure, based on internationally recognized best practices and standards for the capital markets. The strategy based on four strategic pillars: (1) protect investors, (2) ensure fair and efficient financial markets, (3) enhance transparency, proficiency as well as awareness and markets integrity, and (4) constrict misleading information and deceptive conduct affecting financial products and services. The Authority also ensures an effective regulatory framework to maintain the financial stability, support the stable economic growth and strengthen the active financial sector through cooperation with the Qatar Central Bank and Qatar Financial Center.
About ANNA
Formed in 1992 under Belgian Law, ANNA (the "Association of National Numbering Agencies") was created to promote the use of International Securities Identification Numbers (ISINs) as the adopted method of uniquely identify financial instruments. ANNA was subsequently appointed by ISO (the "International Organization for Standardization") as the Registration Authority and Maintenance Agency for the ISIN Standard (ISO 6166).
The Association originally started 22 National Numbering Agencies (NNAs), and twenty years later it comprises more than 110 NNAs.
ANNA has also been approved by ISO as the Registration Authority and Maintenance Agency for the CFI Standard (ISO 10962) in 1995.
Since its foundation, ANNA has been growing constantly, and has always played a key role in the promotion of standards, assisting the financial markets requirements towards a more efficient environment.
For further information, please contact QFMA, Securities & Issuers Affairs Department:
Phone: (44289977-44289940)
E-mail: (sia@qfma.org.qa)
© Press Release 2014
