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SEDOL
Masterfile (SMF)
Q.
What is the SEDOL Masterfile?
A.
The SEDOL Masterfile holds static data about the asset i.e.
country of origin, trades currency, SEDOL number.
Q.
Why are you introducing a new SEDOL Code?
A.
There is a requirement for a change to an alphanumeric
code before 2004 as the issuance of the 7 digit numeric SEDOL code
is reaching capacity.
Q.
What changes are being made to the SEDOL code and Securities
Masterfile service?
A.
1. A new unique 7-character
alphanumeric SEDOL code.
2. A 24/7 web browser and help line to allow you to request new SEDOL
codes (i.e. time issuance) and lookup/download existing SEDOL
codes.
3. Automatic issuance of SEDOL codes.
4. The issuance of SEDOL codes with additional identification data
including the Market Identifier Code (MIC), to increase
efficiencies in identifying the market a security is traded on,
and ISIN codes for cross reference purposes.
Q.
What are the benefits to the market?
A.
1. The LSE aims to reduce an estimated £100m lost each
year by trading errors due to misidentification of securities and
markets.
2. SEDOL Codes will be allocated on a real time basis; and
3. A single code to will cover all asset classes.
Q.
What are the benefits to me?
A.
You will be able to request SEDOLs yourself from the LSE website
and check and verify data in the SEDOL Masterfile.
Licence
Arrangements
Q.
How can the LSE licence this information?
A.
The LSE have maintained this information for 30 years on over
400,000 securities traded on UK and international markets. This is
their proprietary data and therefore it is their legal right to
licence this data.
Q.
What will happen if I do not get a licence with the LSE?
A. The LSE will want
to enter into discussions with your organisation and Euraplan to
see if we can come to some way forward. They could ultimately stop
you receiving SEDOLs and any data attached.
Q.
Is
there any organisation I can go to if I do not agree with the
licensing arrangement?
A.
The LSE is monitored by the Office of Fair Trading
(OFT), if you are unhappy with the licensing arrangements this is
where you can lodge your complaint.
Q.
Can the LSE increase the licence fee as and when they wish?
A. The LSE must
report back to the OFT as they are in a monopolistic position.
Their profits are audited by the OFT.
Q.
Do I need a licence for every data feed I get with a SEDOL code on
it?
A.
No, each organisation needs only one licence to cover any use of
SEDOLs. This is one of the reasons why you must have the licence
directly with the LSE so they will not licence you twice.
Q.
When
and how will the LSE invoice for the SEDOL codes?
A.
Payment will be quarterly payable in advance and the
contract will be between the London Stock Exchange and the
customer.
Q.
Who will be the counter party to the commercial contract, vendor
or Exchange?
A.
The London
Stock Exchange.
Q.
If the pension scheme is owned by the company, does the scheme or
the company need the licence?
A. The company will need
to take the licence on behalf of its subsidiaries (a subsidiary
must be more than 50% owned by the parent company). It is the
company's responsibility to notify the exchange of its
subsidiaries and any changes.
Q. Are
fund managers charged for distributing SEDOLs?
A.
No they are not, because they have to report to their
clients under the regulations laid down by the FSA. Therefore the
LSE charge the fund managers a user licence only, and not a
distribution licence.
Euraplan’s
Software & SEDOLs
Q.
If I was
not using investment monitoring software such as Shareholder or
OpenAIR Investments, would I still need a SEDOL Masterfile
licence?
A. As long as you
were not receiving and storing SEDOL numbers from any other source
then you would not need the licence.
If you download SEDOLs from your custodian or fund manager you
will require this licence.
Q.
Has Euraplan thought about not using
the SEDOL codes as the unique identifier in their investment
systems?
A.
We
have investigated this avenue and believe currently that it would
be more effective for our clients to pay the licences, however all
feedback is welcome.
We would not consider using ISIN or Cusip as the former could well
be licensed in the future and the latter is already licensed. The
only alternative would be a ‘Euraplan’ number.
If
you have any further questions which have not been answered above then please
contact Euraplan Support on 020-7963-4080 or email at 
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