Valoren Number Explained: Global Securities Identification for Investors

In the world of global finance, understanding how different markets identify and track financial securities is crucial for investors, compliance professionals, and anyone involved in cross-border trading. One such identifier you might encounter, particularly when dealing with Swiss or European assets, is the Valoren number. But what exactly is a Valoren number, and why should Australian investors care? Let’s unpack its purpose, how it fits into the international landscape, and where it might show up in your financial journey.

What Is a Valoren Number?

The Valoren number is a unique numeric identifier assigned to financial securities, such as stocks, bonds, and derivatives. Originating in Switzerland, it’s maintained by SIX Financial Information, a division of the Swiss Stock Exchange. Valoren numbers are widely used not just in Switzerland, but also in Liechtenstein and by international institutions dealing with Swiss securities.

• Format: The Valoren is always a numeric code, typically consisting of 6 to 9 digits (e.g., 1234567).
• Scope: It’s used for all types of securities: equities, fixed income, funds, structured products, and more.
• Purpose: To provide a unique, non-redundant identifier for each security, reducing confusion and operational risk in settlements and cross-border transactions.

While similar in function to the ISIN (International Securities Identification Number) or CUSIP (used in North America), the Valoren is especially relevant for instruments listed or settled in Switzerland.

Why Does the Valoren Number Matter?

In an increasingly interconnected world, Australian investors and financial institutions often trade or hold assets beyond the ASX. Here’s why the Valoren number is worth knowing:

• Cross-Border Investing: If you buy shares in a Swiss company or a global ETF that includes Swiss assets, your broker or custody statement may reference the Valoren number for identification.
• Operational Efficiency: Settlement systems, fund administrators, and custodians use Valoren numbers to ensure accurate trade matching and asset servicing, reducing the risk of costly errors.
• Regulatory Compliance: As global anti-money laundering (AML) and Know Your Customer (KYC) standards tighten, clear security identification supports transparency and due diligence.

For example, when an Australian superannuation fund invests in a Zurich-listed bond, the trade confirmation and reporting will often include the Valoren number alongside the ISIN and other identifiers.

How Does the Valoren Fit with Other Security Identifiers?

Global securities often carry multiple identifiers, and understanding how they map together is key for portfolio managers, accountants, and even retail investors tracking their holdings. Here’s how the Valoren interacts with other codes:

• ISIN: The International Securities Identification Number is a 12-character alphanumeric code. For Swiss securities, there’s a direct mapping between the Valoren and ISIN — the Valoren often forms the numeric part of the ISIN (e.g., CH0012345670 for Valoren 1234567).
• SEDOL and CUSIP: These are used in the UK and North America, respectively. Financial databases and custodians routinely cross-reference these with the Valoren for global reconciliation.
• LEI (Legal Entity Identifier): While the LEI identifies legal entities (not securities), it’s often used together with Valoren and ISIN in regulatory filings and trade reporting.

In 2025, as regulatory frameworks like the EU’s CSDR (Central Securities Depositories Regulation) and Australia’s CHESS replacement drive greater harmonisation of post-trade processes, the importance of standardised identifiers like Valoren is only growing.

Real-World Example: Swiss ETFs on Australian Platforms

Suppose you’re using an Australian online broker to access global ETFs, and you choose a fund domiciled in Switzerland. Your trade confirmations, tax statements, or the ETF’s factsheet may list:

• The ETF’s ISIN (e.g., CH0012345670)
• Its Valoren number (e.g., 1234567)
• Additional identifiers (like SEDOL for UK, or ticker symbols)

Knowing what the Valoren number represents allows you to verify you’re trading or holding the correct security, especially when reconciling data from different sources or dealing with international tax authorities.

Recent Trends and Policy Updates in 2025

The financial world is moving rapidly towards more seamless, digital, and global securities processing. In 2025, several developments are impacting the use and visibility of identifiers like the Valoren number:

• Australia’s CHESS Replacement: The new post-trade system is designed to better accommodate global asset classes and identifiers, including direct support for ISIN and cross-referencing with Valoren for international trades.
• EU and Swiss Collaboration: Ongoing financial market integration between Switzerland and the EU has increased the prominence of Valoren numbers in pan-European settlements.
• Digital Assets: As tokenised securities and digital bonds emerge, standard identifier schemes (including Valoren) are being adapted to cover new asset types.

For Australian investors, this means smoother access to a wider range of global assets — but also a greater need to understand the identifiers that underpin these markets.