Market Identifier Code - MIC

DEFINITION of 'Market Identifier Code - MIC'

A four-character code used to identify stock markets and other trading exchanges within global trading and referencing computer systems. The code is used to process and clear trades, and is being pushed toward 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.

BREAKING DOWN 'Market Identifier Code - MIC'

STP is 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 market of origin, currency and security identification. As it stands now, there are several different systems used by different countries and for differing types of securities. One global standard will have to emerge over 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 securities industries move toward the ultimate goal of an "any security, anywhere, anytime" marketplace.
the International Organization for Standard (ISO) publishes the MIC list of all countries on the second Monday of the month.

RELATED TERMS
  1. Stock Market

    The market in which shares of publicly held companies are issued ...
  2. International Organization For ...

    The world's largest developer and published of international ...
  3. Clearing House

    An agency or separate corporation of a futures exchange responsible ...
  4. Stock Exchange Daily Official List ...

    A unique identification code, consisting of seven alphanumeric ...
  5. Straight Through Processing - STP

    An initiative used by companies in the financial world to optimize ...
  6. London Stock Exchange - LSE

    The primary stock exchange in the U.K. and the largest in Europe. ...
Related Articles
  1. Options & Futures

    Getting To Know The Stock Exchanges

    Here are the answers to all the questions you have about stock exchanges but are too afraid to ask!
  2. Trading Systems & Software

    The Global Electronic Stock Market

    The way trading is conducted is changing rapidly as exchanges turn toward automation.
  3. Fundamental Analysis

    5 Predictions for the Chinese Stock Market in 2016

    Find out why market analysts are making these five ominous predictions about the Chinese stock market in 2016, and how it may impact the entire world.
  4. Economics

    How Interest Rates Affect The U.S. Markets

    When indicators rise more than 3% a year, the Fed raises the federal funds rate to keep inflation under control.
  5. Investing Basics

    Financial Markets: Capital vs. Money Markets

    Financial instruments with high liquidity and short maturities trade in money markets. Long-term assets trade in the capital markets.
  6. Economics

    The Ripple Effect: Interest Rates and the Stock Market

    Investors should observe the Federal Reserve’s funds rate, which is the cost banks pay to borrow from Federal Reserve banks.
  7. Investing Basics

    Calculating Floating Stock

    Floating stock is the number of shares a company has available for trade in the open market.
  8. Investing Basics

    Financial Markets: Capital Vs. Money Markets

    Two commonly used components of the financial market are money markets and capital markets. Find out the similarities and differences between them.
  9. Stock Analysis

    Hedge Funds: Idiosyncratic Challenges to Fade

    With shifting monetary policy, we see renewed potential across many hedge fund strategies.
  10. Economics

    3 Economic Challenges Argentina Faces in 2016

    Learn about three challenges that the Argentine economy faces. How will President Macri manage capital controls, investor sentiment and fiscal deficit?
RELATED FAQS
  1. What is a CUSIP number?

    CUSIP stands for Committee on Uniform Securities Identification Procedures. Formed in 1962, this committee developed a system ... Read Full Answer >>
  2. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  3. What is the difference between shares outstanding and floating stock?

    Shares outstanding and floating stock are different measures of the shares of a particular stock. Shares outstanding is the ... Read Full Answer >>
  4. What are the advantages and disadvantages of listing on the Nasdaq versus other stock ...

    The primary advantages for a company of listing on the Nasdaq exchange are lower listing fees and lower minimum requirements ... Read Full Answer >>
  5. What is the difference between market risk premium and equity risk premium?

    The only meaningful difference between market-risk premium and equity-risk premium is scope. Both terms refer to the same ... Read Full Answer >>
  6. What is the difference between the QQQ ETF and other indexes?

    QQQ, previously QQQQ, is unlike indexes because it is an exchange-traded fund (ETF) that tracks the Nasdaq 100 Index. The ... Read Full Answer >>
Hot Definitions
  1. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  2. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  3. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  4. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
  5. Dark Pool Liquidity

    The trading volume created by institutional orders that are unavailable to the public. The bulk of dark pool liquidity is ...
Trading Center