[go: up one dir, main page]

Market Identifier Code (MIC): Definition, Purpose, Uses, and Types

By
Will Kenton
Full Bio
Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School for Social Research and Doctor of Philosophy in English literature from NYU.
Learn about our editorial policies
Updated December 31, 2023
Reviewed by
Samantha Silberstein
Sam Silberstein Sam Silberstein
Reviewed by Samantha Silberstein
Full Bio
Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated history of working in both institutional and retail environments, from broker-dealers to RIAs. She is a current CFA level 3 candidate and also has her FINRA Series 7 and 63 licenses. Throughout her career, Samantha has used her expertise and various licenses and certifications to provide in-depth advice about household and business-specific financial planning, investing, credit cards, debt, student loans, taxes, retirement, and income strategies.
Learn about our Financial Review Board
Fact checked by
Hans Daniel Jasperson
Hans Daniel Jasperson Hans Daniel Jasperson
Fact checked by Hans Daniel Jasperson
Full Bio
Hans Daniel Jasperson has over a decade of experience in public policy research, with an emphasis on workforce development, education, and economic justice. His research has been shared with members of the U.S. Congress, federal agencies, and policymakers in several states.
Learn about our editorial policies

What Is a Market Identifier Code (MIC)?

A market identifier code (MIC) is a four-character number used to identify stock markets and other exchanges for use in global trading and referencing computer systems.

The first letter of an MIC is randomly allocated followed by a three-digit alphanumeric code for the market in which a trade takes place. Submitters can propose a combination of four characters, but the Registration Authority remains ultimately responsible for the assignment. Once allocated, a MIC code cannot be modified.

The MIC code is used to process and clear trades and is achieving global acceptance as the securities industries move toward straight-through-processing (STP). The London Stock Exchange uses MICs as part of its SEDOL security-identifying systems, which is an alternative to the U.S.-based CUSIP identifying system.

Key Takeaways

  • A market identifier code (MIC) is used to specify stock markets and other exchanges in which securities are traded.
  • The code is unique, and includes four characters, starting with a randomly assigned alphanumeric character, followed by a three-digit code to signify the market, such as XNAS for the Nasdaq market.
  • MICs are used as an international standard of identification, with codes defined by the International Organization for Standardization (ISO).

Understanding Market Identifier Codes (MICs)

Straight-through processing is a conceptual approach for improving the speed of executing transactions. It is considered to be the holy grail of global securities trading. In order for it to be possible, there will need to be a wealth of consistent codes for the market of origin, currency, and security identification. As it stands now, there are several different systems used by different countries for different types of securities.

A global standard will have to emerge in time, and all of the software and processing systems will have to back it, making the necessary technical changes along the way. This process will take time as the exchanges move toward the ultimate goal of an "any security, anywhere, anytime" marketplace.

The International Organization for Standardization (ISO) publishes the MIC list of all countries on the second Monday of the month.

How Market Identifier Codes Are Used

MICs have been presented by ISO as an international standard to identify markets, trading platforms, and exchanges, allowing for automated processing of trades. When MICs are used as the universal identifying standard, it will be a significant step in bringing straight-through processing beyond the concept phase.

There are different types of MICs. A market segment MIC identifies a section of one of the entities covered by the code that specializes in one or more specific instruments or is regulated differently. Market segment MICs were instituted for more accuracy, according to ISO.

For each market segment MIC, there is a parent MIC, also known as an operating MIC.

An operating MIC, in turn, identifies the entity that operates an exchange, trading platform, regulated or non-regulated market, or a trade reporting facility in a specific country.

Market organizations can apply for an MIC by submitting a request to the registration authority. Typically, a market segment MIC is generated when demand merits the need to identify the segment. Depending on the circumstances, only specific segments of a market may receive identification with a market segment MIC.

Where Can I Find Market Identifier Codes?

The current list of market identifier codes is available for download from the International Organisation for Standardization, which is the registration authority for MICs. The list is updated monthly.

What Kinds of Markets Have MICs?

There are a number of market categories that are identified with MICs.

They include exchanges and divisions of exchanges, For example, the NASDAQ is coded XNAS while the NASDAQ options market is coded XNDQ.

There also are categories for types of markets. For example, a cryptocurrency exchange is coded CASP, and a stock exchange is coded RMKT.


How Many Market Identification Codes Are There?

There are currently 2,553 market identification codes in use, according to TradingHours.com.

The Bottom Line

Market identifier codes are a step in the direction of straight-through processing in the financial markets. This refers to the automation of trades on a global basis.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. ISO 10383. "Market Identifier Codes."

  2. ISO 10383. "Frequently Asked Questions."

  3. ISO 10383. "Market identifier codes."

  4. TradingHours. "Market Identification Codes (MIC)."

Compare Accounts
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.