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.

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