Preventing Duplicate Codes for Stocks and ETNs... Alphabet Mixing to Start Next Year
Starting next year, stock codes listed on the domestic stock market will be revised to allow a combination of numbers and alphabets. This change is due to the rapid increase in listed stocks and financial products, which raises concerns about the issuance capacity being gradually limited and the possibility of duplication.
On the 23rd, the Korea Exchange announced a plan to reform the stock code system. Domestic financial products are issued with a 12-digit standard code and a shortened code derived from it. The shortened codes use alphabets to distinguish between financial products, such as 'A' for stocks and 'Q' for ETNs, but most users currently use the six-digit numeric shortened codes without the alphabets.
However, with the recent rapid increase in listed stocks and financial products, concerns have arisen that six-digit numeric-only stock codes may soon be duplicated. Additionally, it is expected that the issuance capacity for stock codes will be fully exhausted within the next 2 to 3 years, highlighting the need to reform the standard and shortened code systems.
In response, the Exchange plans to separate the usage areas of stock and ETN code values to prevent duplication and expand issuance capacity by mixing alphabets into some code positions that currently use only numbers. This means the existing shortened codes, which were composed only of numbers, will now incorporate alphabets.
This stock code reform plan is scheduled to take effect from January 1 of next year. It was designed after collecting preliminary opinions from users such as securities firms and considering the time required for related system development. However, the reform will not change any already issued standard or shortened codes.
Hot Picks Today
As Samsung Falters, Chinese DRAM Surges: CXMT Returns to Profit in Just One Year
- "Most Americans Didn't Want This"... Americans Lose 60 Trillion Won to Soaring Fuel Costs
- Man in His 30s Dies After Assaulting Father and Falling from Yongin Apartment
- Samsung Union Member Sparks Controversy With Telegram Post: "Let's Push KOSPI Down to 5,000"
- "Why Make Things Like This?" Foreign Media Highlights Bizarre Phenomenon Spreading in Korea
An official from the Exchange stated, "Even if alphabets are used in codes that previously only used numbers, system changes are necessary to accommodate this." They added, "To prevent similar issues from arising in the future, we request code users to improve their systems to use the entire shortened code without partial omission."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
