What You Need to Know About Cusip Numbers and How They Work

Cusip numbers are a series of nine characters that uniquely identify a security, making it easy to track and manage investments.

A Cusip number is assigned to a security by S&P Global Market Intelligence, a company that maintains a database of all Cusip numbers.

The first six characters of a Cusip number represent the issuer, while the last three characters represent the specific security.

This unique identifier helps prevent errors and ensures accurate record-keeping in the financial industry.

A CUSIP number is a unique identification code for all financial securities registered with the US and Canadian entities. It's a standard method of identifying securities to improve operating efficiencies across the industry.

The full form of CUSIP is Committee on Uniform Securities Identification Procedures, and it was born out of a need to develop a standard method of identifying securities. This was a result of the American Bankers Association (ABA) being tasked to find a suitable system for the same in 1964 by the New York Clearing House Association.

A CUSIP number is comprised of nine letters and includes letters and numbers. It's mainly used today in computerized trading record-keeping systems for trades and shareholder records.

CUSIPs were first introduced in 1964 to simplify the settlement and clearance of stocks. They are the unique identifier for every publicly-traded security, distinguishing securities from one another and facilitating the quick identification and exchange of stocks or bonds.

Here are some key facts about CUSIP numbers:

Investors with a subscription to Standard & Poor's can access a database of CUSIP numbers, and you can also find CUSIP numbers on most companies' websites or by using querying tools online to search CUSIP numbers by company name.

The CUSIP number is a powerful tool for investors and financial institutions alike. It provides descriptive information about various securities, making it easier to track securities across all processing and analysis phases.

The system covers a wide range of global financial instruments, currently covering over 14 million financial instruments. This is a significant advantage, especially for investors who need to keep track of their investments across different markets.

CUSIP numbers are used to identify equity and debt instruments of issuers, and the criteria for assigning these numbers are well-defined. For example, CUSIP numbers are assigned to public and private offerings in the US, as well as to foreign securities through the CINS system.

Here's a breakdown of the criteria for assigning CUSIP and CINS numbers:

Having a unique identifier like the CUSIP number allows for easy identification and tracking of stocks, bonds, funds, etc., ensuring accurate execution and documentation of trades, settlement, and clearance. This is a significant benefit for investors, who can obtain information specific to the trades, yield, performance of a stock, etc., through research using the CUSIP number.

In addition to the benefits mentioned above, the CUSIP number also facilitates quick and accurate identification of securities during transactions, reducing errors and delays, and enhancing market efficiency. This is achieved through the use of CUSIP numbers as a standardized system for identifying and categorising securities, simplifying the reporting process and ensuring transparency.

Locating a CUSIP number is a relatively straightforward process. You can access it through the Municipal Securities Rulemaking Board (MSRB) via the Electronic Municipal Market Access (EMMA) system.

CUSIP numbers are also publicly listed on official statements, such as confirmations of purchase or periodic financial statements. They can also be accessed through various securities dealers.

A dummy CUSIP is a temporary, nine-character placeholder used internally by a company to identify a specific security until its official CUSIP number is assigned.

To look up a CUSIP number, you can request a stock quote on a broker's website, which often includes the CUSIP. You can also find the numbers on a brokerage's official statements sent to clients, or on physical stock or bond certificates if you own them.

Certain bond CUSIPs may also be obtained through the Municipal Securities Rule-Making Board via the Electronic Municipal Market Access system.

Here are some ways to find a CUSIP number:

You can also consult your broker or financial advisor to obtain CUSIP numbers easily.

The CUSIP number has a rich history that dates back to 1968. It was created in response to the heavily reliant paper environment of Wall Street at the time.

By 1972, all clearing corporations were using CUSIP numbers. This marked a significant shift towards a more efficient and organized system.

CUSIP numbers can be accessed in various ways, including through individual company websites, the Municipal Securities Rulemaking Board's Electronic Municipal Market Access system, and official statements related to the security.

Here are some ways to access a CUSIP number:

The Securities and Exchange Commission also hosts a database query tool that allows you to look up a CUSIP number by company name.

The International Securities Identification Number (ISIN) system is a global standard for identifying securities. It's used worldwide for cross-border transactions and by exchanges outside the U.S.

ISINs are 12 characters long and alphanumeric, starting with a 2-letter country code, followed by a 9-character national security identifier and a single check digit. They're issued by National Numbering Agencies (NNAs) based on the country.

One of the key benefits of ISINs is that they encompass a broad range of securities, including stocks, bonds, options, and derivatives. This makes them adaptable to global financial markets and can accommodate various types of securities.

ISINs are widely accepted and used in global financial markets for transaction and settlement processes. They're also used for securities issued in countries outside North America, which is why they're gaining traction across foreign markets.

A CINS number, which is an extension of the CUSIP numbering system, is another international identifier used for securities issued in 30 markets outside North America. However, this is a separate topic we'll explore in a later section.

Here's a comparison of ISIN and CUSIP:

ISINs are an essential part of international trading processes, allowing for the proper identification and processing of securities across borders.

The CUSIP has a rich history that dates back to 1968. It was created in response to the heavily reliant paper environment of Wall Street.

By 1972, CUSIPs were used by all clearing corporations. This marked a significant shift towards a more efficient and organized system.

Individual companies often display their CUSIP numbers on their websites. This makes it easy for investors to access the information they need.

CUSIP numbers can also be accessed through the Municipal Securities Rulemaking Board (MSRB) via the Electronic Municipal Market Access (EMMA) system. This provides a convenient way for investors to find the information they're looking for.

The Securities and Exchange Commission (SEC) hosts a database query tool that allows users to search for CUSIP numbers. By entering the name of the company, users can access documents such as financial report filings, company information, and securities information.

In November 2009, the European Commission charged S&P Capital IQ with abusing its position as the sole provider of ISIN codes for U.S. securities.

The European Commission alleged that S&P Capital IQ was requiring financial services companies and information service providers to pay license fees for the use of U.S. ISINs, which was deemed unfair pricing.

Comparable agencies elsewhere in the world either do not charge fees at all or do so on the basis of distribution cost, rather than usage.

CGS/S&P Capital IQ offered to create a low-cost, low-value feed of certain US ISINs for use by market participants in the European Economic Area.

A formal agreement was reached on November 15, 2011.

CUSIP also reserves the special characters '*', '@' and '#' for use with private placement numbers (PPNs) used by the insurance industry.