What is a CUSIP number?
CUSIP refers to the Committee on Uniform Credential Identification Procedures which oversees the entire CUSIP system. The CUSIP number is a unique identification number assigned to all stocks and bonds registered in the United States and Canada, and is used to make a concrete distinction between securities traded on public markets. Foreign securities have a similar number called a CINS number.
Understanding the CUSIP number
Although the assigned stock symbols are also unique, a CUSIP number is designed for use by most computerized business record keeping systems.
Key points to remember
- A CUSIP number is a unique identification number assigned to stocks and bonds registered in the United States and Canada and is primarily used in computerized trading record keeping systems.
- It consists of nine letters and includes letters and numbers.
The CUSIP system
The CUSIP system is owned by the American Bankers Association in collaboration with Standard & Poors. The system is in place to facilitate the settlement process and the clearance of associated securities. The CUSIP is composed of nine characters and can include letters and numbers. It is assigned to all registered stocks and bonds that are sold or traded in the United States and Canada.
A CUSIP number is similar to a serial number. The first six characters are known as base, or CUSIP-6, and identify the bond issuer. The seventh and eighth digits identify the type of bond and the ninth digit is a “check digit” which is generated automatically. A CIN (CUSIP International Numbering System) is used for securities issued on foreign markets. In this case, the first letter represents the issuing country. For example, E09876AA7 represents a corporate bond rated AA issued in Spain (E is the letter used to identify Spain) and offered on a foreign market.
These numbers are used to facilitate transactions and settlements by providing a constant identifier to help distinguish securities within a transaction. Each transaction and the corresponding CUSIP number are recorded to facilitate monitoring of actions and activities.
Locating a CUSIP number
CUSIP numbers are publicly available and can be viewed through the Municipal Securities Regulatory Council (MSRB) via the EMMA (Electronic Municipal Market Access) system. In addition, the information is often listed in official security statements, such as purchase confirmations or periodic financial statements, or the information can be viewed through various securities dealers.
The CUSIP system extends beyond the CUSIP system. ISIN codes are used internationally with most titles from the United States and Canada labeled with an additional two-character prefix and a final control character attached to the end of the CUSIP originally issued.
In addition, information regarding the currency of the specified security is also required to facilitate proper processing and registration. This helped establish an international securities clearing system. Although it is not yet used worldwide, the ISIN system has gained ground in foreign markets in order to simplify business processes, especially for international investments.
Example of CUSIP numbers
Here are some examples of CUSIP for companies in various industries.
|CUSIP numbers for certain titles|
|Alaska Air Group||011659109|
|Walmart Stores, Inc.||931142103|