What is the 'Stock Exchange Daily Official List - SEDOL'

The stock exchange daily official list (SEDOL) is a seven-character identification code assigned to securities that trade on the London Stock Exchange and various smaller exchanges in the United Kingdom. SEDOL codes are used for unit trusts, investment trusts, insurance-linked securities, and domestic and foreign stocks. SEDOL codes are comparable to CUSIP numbers, which are codes issued by the Committee on Uniform Securities Identification Procedures for stocks traded in the United States.

BREAKING DOWN 'Stock Exchange Daily Official List - SEDOL'

New SEDOL codes may be issued for a number of reasons, including changes in corporate headquarters, corporate mergers, the issuance of a new ISIN, takeovers, company name changes, and when share reclassifications occur.

The Makeup of SEDOL Classification Codes

All SEDOL codes have seven characters, split into two parts: the first six characters are an alphanumeric code, and the seventh character is a trailing check digit. SEDOL codes that were issued before January 2004 were strictly comprised of numeric characters. Since January 26, 2004, SEDOL codes are issued sequentially with both numbers and letters, starting with B000009. For each character position, numbers always go before letters, and vowels are never used. Therefore, SEDOL codes issued after January 2004 begin with a letter.

The check digit for the SEDOL code is selected in order to make the weighted sum of all seven characters a multiple of 10. This digit is calculated using the weighted sum of the first six characters. Letters are assigned numbers for this process: each letter equals nine plus the number that correlates to its position in the alphabet. For example, C would equal 12 (9 + 3).

Significance

The London Stock Exchange credits the SEDOL as an important and unique market-level security identifier that is recognized globally, decreases costs incurred by trade failure across borders. and increases efficiency of trade and securities transactions. SEDOL codes help the United Kingdom's exchanges provide a higher caliber of service by reducing such failures and streamlining the trading process.

Several characteristics of SEDOL codes make them vital and significant. Unique, assigned country-level numbers make for easy identification, with one assigned to each country. SEDOL codes are also prompt, with reduced issuance processing time frames. One last characteristic that makes SEDOL codes significant is commonality: codes are allocated to every country for listed and unlisted securities, and they cover every asset class.

Ultimately, SEDOL codes are apropos in today’s worldwide marketplace, as exchanges need a secure and identifiable method of tracking assets being traded. London and the United Kingdom rely on SEDOL codes for their uniqueness and efficiency in tracking assets, and for their ability to ensure investors buy the correct stocks.

RELATED TERMS
  1. Instructing Bank

    An instructing bank is one of the banks that plays a role in ...
  2. Tax Code

    A tax code is a federal government document that details the ...
  3. Commercial Code

    Private and public laws that regulated how commerce is to be ...
  4. Market Identifier Code - MIC

    A market identifier code (MIC) is an international indicator ...
  5. Quick Response (QR) Code

    A Quick Response (QR) Code is a type of bar code which can be ...
  6. CUSIP Number

    The CUSIP number is an identification number assigned to all ...
Related Articles
  1. Investing

    How Japan's Stewardship Code Works

    The new stewardship code in Japan aims to improve corporate governance. Will this voluntary code help beneficiaries of company pension funds as intended?
  2. Insights

    SIC Vs. NAIC -An Introduction To Industry Classification Codes

    Standard Industrial Classification (SIC) Codes and the more recent NAICS codes are crucial to classifying data to measure industrial growth.
  3. Investing

    Old Stock Certificates: Lost Treasure or Wallpaper?

    What if you've discovered some old shares in bearer form? Follow our tips to find out what they're worth.
  4. Tech

    How Education Has Transformed in the Digital Age

    Open online courses and coding boot camps are democratizing education globally.
  5. Trading

    Trading Systems Coding

    Automate your trades by translating your strategy into a language your computer can implement in this hands-free approach to investing.
  6. Taxes

    Do You Plan or Prepare for Tax Season?

    There is a big difference between tax planning and tax preparation.
  7. Investing

    Twitter Stock Rises With Its Character Limit

    The social media platform’s decision to increase its character limit from 140 to 280 was well received by investors, but got a mixed response from users.
  8. Investing

    PepsiCo Bets Big on "Uncle Drew" Ad Character

    PepsiCo (NYSE: PEP) brought back its "Uncle Drew" character for a new ad which first aired during the National Basketball Association's All-Star Game, and the company has even bigger plans for ...
RELATED FAQS
  1. How does the ISIN numbering system work?

    International Securities Identification Numbering (ISIN) system codes all sorts of securities with unique identification ... Read Answer >>
  2. If a company undergoes an acquisition can an employee withdraw 401(k) funds tax free?

    Although the participant may be eligible to withdraw the funds if a plan is terminated as a result of an acquisition or other ... Read Answer >>
Hot Definitions
  1. Gross Margin

    A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. ...
  2. Inflation

    Inflation is the rate at which prices for goods and services is rising and the worth of currency is dropping.
  3. Discount Rate

    Discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from ...
  4. Economies of Scale

    Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger ...
  5. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  6. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
Trading Center