Cusip Search: A Guide to CUSIP Numbers and Their Importance

CUSIP numbers are used to identify securities such as stocks, bonds, and mutual funds in the US and Canadian markets.

These unique nine-digit codes are assigned by S&P Global Market Intelligence, a leading provider of financial data and analytics.

CUSIP numbers are used by financial institutions, exchanges, and other market participants to facilitate trading, settlement, and reporting of securities.

A CUSIP number is typically composed of three parts: the first six digits identify the issuer, the seventh digit identifies the type of security, and the last two digits are a check digit to ensure the number is valid.

A CUSIP number is a unique code assigned to financial instruments, including stocks, bonds, options, and other securities, as well as issuers of those securities. It's a nine-character alphanumeric code, to be exact.

CUSIP numbers are used for more than 62 million assets, which is a staggering number. This includes a wide range of financial instruments, such as U.S.-registered stocks and bonds, American depository receipts, and exchange-traded funds (ETFs).

Here are some examples of assets that can have CUSIP numbers:

CUSIP numbers help speed up trades, making it easier for buyers and sellers to find each other. They provide a standardized way of identifying financial instruments, which is essential for efficient trading.

A CUSIP number is a unique identifier for all registered securities in the U.S. and Canadian financial markets. It's like a social security number for stocks and bonds.

The CUSIP number is assigned by the Committee on Uniform Securities Identification Procedures (CUSIP), which ensures that each listed security has a distinct number for tracking and recording transactions.

A CUSIP number consists of nine digits, which are broken down into three parts: the first six digits identify the issuer, the next two digits identify the type of security, and the final digit is an automated check digit that verifies the accuracy of the previous numbers.

Here's a breakdown of the CUSIP number format:

CUSIP numbers can be found through various sources, including the Municipal Securities Rulemaking Board (MSRB) via the Electronic Municipal Market Access (EMMA) system, or on official statements and financial statements.

The CUSIP system was created in 1964 by the American Bankers Association (ABA) to standardize the identification of securities in the US.

The ABA developed the CUSIP system in response to the growing need for a unique identifier for securities, which was becoming increasingly important for trading and settlement purposes.

The first CUSIP was assigned to IBM stock in 1964.

The CUSIP system was initially used by the major stock exchanges, including the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX).

A CUSIP number is like a social security number for stocks and bonds, used to track and record transactions by financial institutions.

CUSIP stands for Committee on Uniform Securities Identification Procedures, the institution that assigns these unique numbers.

Each listed security gets its own CUSIP number, which is used to distinguish it from others.

Think of it like a marathon, where each contestant has a unique number on their shirt to identify them.

CUSIP numbers are assigned by CUSIP Global Services, an organization that handles the process.

To get a CUSIP number, an issuer fills out an online form and provides required documentation, which can be found on CUSIP Global Services' website.

The application fee is $100 and there's an annual administration fee of $80 to maintain the status.

The process is relatively straightforward, and an official CUSIP representative will contact the issuer to finalize the procedure.

A CUSIP number can tell you a lot about a security, but what exactly does it tell you? The unique identifier will reveal the exact type of security it references and who issued it. This means you can find out if it's a corporate bond or common stock.

The CUSIP number will also identify the issuer, which is the only purpose of the base, the first 6 digits. This is where the entity that issued the security is identified, whether it's a company, municipality, or government agency.

The 7th and 8th characters identify the issue, or the type of financial product. This means these 2 numbers tell you if something is a common stock, ETF, mutual fund, bond, or whatever else – each asset type has its 2-digit code. For example, debt securities like bonds typically have letters (like AA for double-A rated bonds), whereas equity securities use numbers (like 10 for common stock).

Here's a breakdown of some common codes:

The ultimate digit is automatically generated and is used to make sure that a CUSIP is legit and valid. The 9th digit is calculated by multiplying all of the other digits by 2, summing everything up, and then summing up the digits until you get a single-digit number. Letters are converted into numbers based on their position in the alphabet, so the whole CUSIP is, in a way, contained in the final digit, also called the 'check digit'.

Public investing requires a unique CUSIP number, but private investments don't need one. This is because private investments aren't transacted through public trading media.

Publicly-traded securities need a CUSIP number to be official, but private investments can be sold directly without one. Companies need to follow regulations and meet specific requirements to get a CUSIP number, which can be a hassle.

Hedge funds, for example, aren't publicly traded and can avoid the administrative legwork of getting a CUSIP number. This allows them to keep their strategies and investments private.

By not having a CUSIP number, hedge funds can withhold information about their investments, which can give them an edge over their competition. Some hedge funds do disclose their investments, though, and this can influence the markets.

For instance, a hedge fund made its gold investment public during the Russian financial crisis of 2022, which might have led some investors to become bullish on gold.

Using CUSIPs is easier than you think. You can request a stock quote on a broker's website, and the CUSIP will often be included.

To find a CUSIP number, you can also check 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.

If you're an investor, knowing a CUSIP number can help you with research. It can provide data on the exact owner, type of financial product, and other up-to-date information.

To look up a CUSIP number, you can use online resources such as CUSIP Global Services or OpenFIGI. You can also use the Electronic Municipal Market Access system to obtain bond CUSIPs.

Here are some ways to use CUSIP numbers in your investment research:

Knowing a CUSIP number can also help you with bureaucratic tasks, such as filling out forms for the IRS and other institutions.

CUSIP numbers are the standard in the U.S. and Canada, whereas ISIN is used on the old continent and worldwide.

ISIN, or International Securities Identification Number, has 12 characters and is assigned and managed by the International Organization for Standardization, based in Switzerland. The first two characters of an ISIN identify the country of the asset's origin.

ISIN is essentially CUSIP's European cousin, and while they have different formats, they do the same thing - identify unique financial products. In fact, the ISIN of the Indian Oil Corporation Ltd. stock is INE242A01010, where the first two characters "IN" indicate the country of origin.

CINS is another important identifier alongside CUSIP. CUSIP Global Services manages it.

CINS is used in conjunction with ISIN, which is a European cousin of CUSIP, with the two types of identification numbers having different formats but doing the same thing – identifying unique financial products.

ISINs have 12 characters and are assigned by the International Organization for Standardization, based in Switzerland. An ISIN has letters as its first 2 characters, telling you the country of the asset’s origin.

The rest of the number follows the same logic, with the first 9 digits identifying the issuer, the 2 digits after that identifying the type of product, and the last digit being the check digit.

A ticker symbol is a unique identifier for a stock in a local stock market, and it can consist of one or a few alphabet letters, or both letters and numbers.

Stock ticker symbols are short and easy to remember, which is why investors often use them to navigate the stock market.

Most Japanese stock tickers are 4-digit numbers, showing that ticker symbols can vary in format depending on the market.

However, it's worth noting that stocks from different countries can have the exact same symbols, such as the U.S.-based First Advantage Corporation and the Canadian Fountain Asset Corp., both using the symbol "FA".

Unlike ticker symbols, CUSIP numbers are always 9 characters long and every single one in existence is unique.