Deutsche Brse says it has successfully completed the changeover of German securities identification numbers (WKN) to the uniform ISIN format (International Securities Identification Number).
The German exchange group claims to have completed the exercise in terms of its own trading, clearing and settlement systems before the official deadline for the introduction of ISIN on April 22, 2003 by the central institution in charge of issuing and administrating securities in Germany (“Wertpapier-Mitteilungen”- WM).
“The replacement of the six-digit German securities identification number with the internationally valid 12-character ISIN format will enable investors to identify securities clearly around the world,” says Deutsche Borse. “This will facilitate cross-border securities trading, clearing and settlement as well as the admission of securities to trading.”
Deutsche Brse began the changeover to ISIN in November 2000. First, all relevant systems and applications were placed within a planning framework, which included the sequence of changeover activities that would be required. At the end of the fourth quarter of 2001 the exchange changed over the individual systems and applications to ISIN, step by step, starting with the central securities master data system. Internal and external tests with customers of the Group with the new identification number were them completed.
Deutsche Borse says the multiple stage process reduced potential risks, as compared with a big-bang approach. From end-November, ISIN is the relevant identification number for the entire German securities chain, from trading, through clearing, to settlement. The exchange will continue to support the German securities identification number (WKN) on a parallel basis until the changeover has been made by the company Wertpapier-Mitteilungen as of April 22, 2003.