The Classification of Financial Instruments (CFI) code was developed to address a number of problems encountered by the financial community. Below are a few of the problems that affected the financial community:
A lack of a consistent and uniform approach to grouping financial instruments.
The use of similar terminology for instruments having significantly different features, in different countries.
The inability to group securities in a consistent manner, thereby leading to holdings being categorised differently.
The Classification of financial instrument (CFI) Code is used to define and describe financial instruments as a uniform set of codes for all market participants. The code is issued by the members of ANNA.
Definition and description for an internationally valid system to classify financial instruments.
Provision of a set of codes to be used by all market participants in an EDP environment, and permission of electronic communication between participants
Improved understanding of the characteristics of financial instruments thereby leading to a better understanding by investors.
Refer to the section "CFI Attributes" for comprehensive details on the structure of a CFI.
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