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CUSIP Number
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CUSIP Number
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Table Of Contents
What Is A CUSIP
Number?
The CUSIP number is a unique
identification code assigned to
most financial instruments,
including stocks of all registered
US and Canadian companies,
commercial paper, and US
government and municipal bonds.
It is owned and managed by
American Bankers Association
and Standard and Poor’s
respectively.
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Custodial Services
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link.
It has nine characters, a
combination of numbers and
letters, and helps identify the
issuer of financial instruments. It
has a unique design that is
compatible with all types of online
record maintenance systems and
is used for various purposes like
security, clearance, and
settlement.
Key Takeaways
The CUSIP Number is a
unique identification number
allotted to securities, stocks,
and financial instruments in
the USA and Canada
companies, commercial
paper, and bonds.
The CUSIP Number provides
easy operation for such
securities and financial
instruments as it provides
trackability.
The
Custodial complete form of CUSIP
Services
is Committee on Uniform
Securities Identification
Procedures. Moreover, this
number enables investors to
quickly locate individual
securities, making it quick to
track interest and dividend
payouts.
All analyses related to a
financial instrument, such as
trends, movements, and
transactions, are recorded
and identified through the
CUSIP number.
CUSIP Number Explained
The CUSIP number for stock and
bond is a unique identification
code for all financial securities
registered with the US and
Canadian entities. Under the
CUSIP system, securities are
provided a unique identification
code that enables clear tracking of
the issue and security-related
details, facilitating ease of
execution of trades, settlements,
and payouts for both the investor
and the issuer.
The full form of CUSIP is
Committee on Uniform Securities
Identification Procedures.
The system was born out of a
need to develop a standard
method of identifying securities to
improve operating efficiencies
across the industry. The American
Bankers
Custodial Association (ABA) was
Services
tasked to find a suitable system
for the same in 1964 by the New
York Clearing House Association.
As a result, the Committee on
Uniform Security Identification
Procedures was created, and the
CUSIP system was instituted. The
CUSIP. The Service Bureau was
formed to administer the system in
1968.
CUSIP Global Services (CGS), the
overarching entity for all offerings,
is managed on behalf of the ABA
by S&P Global Market Intelligence.
CGS has a Board of Trustees
representing various leading
financial institutions.
CGS is the numbering systems or
agency for
The United States and
Canada.
The Cayman Islands, British
Virgin Islands, and Bermuda.
35 Other markets throughout
the Caribbean and
Central/South America.
Format
These numbers capture an issue's
significant differentiating
characteristics based on a 9-
character identifier with a
common structure. Given is the
format of both CUSIP and CINS
numbers.
CUSIP Format
Custodial Services
Amazon.com Inc. – Common
Stock
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The CINS identification system
uses a nine-character structure
similar to the CUSIP but contains a
letter in the first position to denote
the issuer's country/geographic
region.
CINS Format
Abingdon Capital PLC – Shares
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link.
Example
Custodial Services
Some examples of CUSIP
numbers are given below which
provides a CUSIP number list.
CUSIP of Common Stock CUSIP of a Bond Issue
Microsoft 594918104 594918AD6
Procter & Gamble 742718109 742718EV7
Johnson & Johnson 478160104 478160AF1
The above CUSIP number list is
useful in identifying such financial
instruments.
Uses
It is necessary to check CUSIP
number because this
identification system 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 and
currently covers over 14 million
financial instruments.
CINS is used to codify and identify
foreign securities, similar to the
CUSIP number for stock and
bonds.
The criteria for assigning these to
equity or debt instruments of
issuers are as follows:
System Services
Custodial Equity Debt
Public (unrestricted) offering by US or Canadian Public or Private debt offering in
Issuer US by any issuer
CUSIP
Private (restricted) offering in US by any issuer - SEC registered; as per Rule 144A
- In accordance with Rule 144A or Regulation D or Regulation D
Equity offerings Exclusively outside the US and
Canada
- Regulation S stock offering by US company on UK Debt offered exclusively outside
AIM Exchange or in Germany the US and Canada
CINS
Public Offering in US by non-US or Canadian issuer - Eurobonds
(except ADR/GDR) - Regulation S (any issuer)
Across Cayman Islands, Bermuda and British Virgin
Islands
How To Find It?
In case the investors want to know
how to get a CUSIP number, they
should look at the security
documents' faces, as shown in the
specimen samples below.
#1 - Specimen Share
Certificate
Source: SEC archives
#2 - Specimen Bond
Custodial Services
Certificate
Source: oldstocks.com
Therefore, in the case of
securities owned, the investors
should check CUSIP number
directly from the security
documents, offer documents, from
securities brokers, on the issuing
companies' websites, or by
contacting the investor relations
department of the issuing entity.
In addition, entities usually
mention the number of their
common stock on their website.
Brokerage firms and websites
that provide securities
research also include the
CUSIP number in the profile
information of the concerned
stock or bond. E.g.,
CBXmarket.
In the case of common stock,
a general Google search with
the stock's trading symbol is
likely to yield results on the
CUSIP number.
This
Custodial unique number of
Services
municipal bonds can be found
in Electronic Municipal Market
Access (EMMA), managed by
the Municipal Securities
Rulemaking Board.
CGS's 'CUSIP Access' is a
fee-based web service that
provides access to the entire
universe of identifiers and a
standardized securities
description.
These numbers can also be
found using other web-based
search tools offered by
various investment houses
and brokers such as Fidelity
Investments.
Thus, from the above explanation
it is clear how to get a CUSIP
number.
Benefits
An investor is required to quote
the CUSIP number in forms and
documents on the purchase and
trade of stocks or bonds.
Additionally, the following
benefits also accrue to investors:
Since these numbers are
unique and specific to each
security, it allows for easy
identification and tracking of
stocks, bonds, funds, etc., to
ensure accurate execution
and
Custodial documentation of trades,
Services
settlement, and clearance.
Information specific to the
trades, yield, performance of
a stock, etc., can be obtained
through research using the
CUSIP number.
It allows issuers to map
individual securities to the
investors, making it easier to
track interest and dividend,
etc.
Frequently Asked
Questions (FAQs)
What does a CUSIP number signify?
A CUSIP Number is a unique
financial instrument and securities
identification number. It creates
identification and provides
trackability for the said
instruments and securities.
Hence, this number signifies
issuer identification, issue
number, and check digit.
Can private companies have CUSIP number?
private companies can have these
numbers, although it is less
common than publicly traded
companies. Hence, private
companies may issue securities
that require identification and
tracking, such as private
placements, debt offerings, or
certain structured products. The
company or its agent can request
a CUSIP
Custodial number for those
Services
categories in such instances.
How to find a CUSIP Number?
The CUSIP Numbers are available
on the Municipal Securities
Rulemaking Board (MSRB) and the
Electronic Municipal Market
Access (EMMA) systems. Hence,
specific methods are to be
followed for a prospectus or
offering documents, final
database, platforms, brokerage, or
custodial statements to find these
numbers.
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