An International Securities Identification Number (ISIN) is a 12-character code that uniquely identifies a security. ISINs are used for a variety of securities, including stocks, bonds, and securitisation products.
In the context of securitisation, ISINs are used to identify the different tranches of a securitisation. Each tranche of a securitisation has its own ISIN, which helps to ensure that investors can easily identify and track the different tranches.
ISINs are also used to facilitate the trading of securitisation products. When a securitisation security is traded, the ISIN is used to identify the security and to ensure that the trade is executed correctly.
Here are some of the applications of ISINs in securitisation:
- To identify securitisation products: ISINs uniquely identify securitisation products, which helps to ensure that investors can easily identify and track the different tranches.
- To facilitate the trading of securitisation products: ISINs are used to identify securitisation securities when they are traded, which helps to ensure that the trades are executed correctly.
- To reduce fraud: ISINs can help to reduce fraud by making it more difficult to counterfeit securitisation securities.
ISINs are a valuable tool for market participants involved in securitisation transactions. They help to ensure that transactions are transparent and that investors can easily identify and track the different tranches.