Aii (Alternative Instrument Identifier) is a method of identifying derivative instruments which do not have an ISIN. Since November 2007 transactions in derivatives admitted to trading on a regulated market have been reportable to the FSA; where the ISIN is not a standard way of identifying instruments this requirement was deferred so that the FSA and the industry could prepare to use Aii.
The Aii methodology was devised by FESE (Federation of European Securities Exchanges) and adopted as a standard by CESR (Committee of European Securities Regulators)
In transaction reporting, the Alternative Instrument Identifier (Aii) is used where the ISIN is not the industry method of identification. This consists of six separate mandatory elements which are collectively known as the Alternative Instrument Identifier (Aii).
In line with ESMA's requirements, the Aii is composed of six elements:
- ISO 10383 Market Identifier Code (MIC) of the regulated market where the derivative is traded.
- Exchange Product Code - the code assigned to the derivative contract by the regulated market where it is traded.
- Derivative Type - identifying whether the derivative is an option or a future.
- Put/Call Identifier - mandatory where the derivative is an option.
- Expiry Date - exercise date/maturity date of the derivative.
- Strike Price - mandatory where the derivative is an option.
