What Is a CUSIP Number?
A CUSIP number is a unique nine-digit identification number assigned to equity, debt, and other securities registered bonds in the United Statesand Canada. It is used to create a concrete distinction between securities that are traded on public markets. These numbers are used to help facilitate trades and settlements by providing a constant identifier to help distinguish the securities within a trade. Each trade and the corresponding CUSIP number are recorded to facilitate thetracking ofactions and activities.
Key Takeaways
- A CUSIP number is a unique identification number assigned to stocks and registered bonds in the United States and Canada.
- It comprises nine letters and includes letters and numbers.
- CUSIPs were first introduced in 1964 to simplify the settlement and clearance of stocks.
- They are mainly used today in computerized trading record-keeping systems for trades and shareholder records.
- Foreign securities have CINS or ISIN numbers instead of a CUSIP.
How CUSIP Numbers Work
Pronounced Q-sip CUSIP is an acronym for the Committee on Uniform Security Identification Procedures, which oversees the entire CUSIP system. Just like the stock symbols assigned to the shares of a publicly traded company, a CUSIP number is a unique identifier attached to the equity, debt, and other securities issued by a company. It issimilar to a serial number and is made up of nine digits:
- The first six alphanumeric characters are known as the base or CUSIP-6, which identifies the issuer
- The seventh and eighth digits identify the type of security
- The ninth digit is a check digit that is automaticallygenerated
The table below highlights some of the securities that are identified by CUSIP numbers.
| Equity | Debt | Other |
| Common Stock | Corporate Bonds | Hedge Funds |
| Preferred Stock | Municipal Bonds | Derivatives |
| Exchange-Traded Funds (ETFs) | Commercial Paper | Variable Annuities |
| Mutual Funds | Collateralized Debt Obligations (CDOs) | Insurance-Related Vehicles |
| Real Estate Investment Trusts (REITs) | Certificates of Deposit (CDs) | Captial Securities |
| American Depository Receipts (ADRs) | Asset-Backed Securities | Equity-Linked Notes |
| Indexes | Syndicated Loans | Credit Derivatives |
By providing a consistent identifier that distinguishes securities, CUSIP numbers help facilitate and ease actions and activities such as trades and settlements. CUSIP Global Services creates anywhere from 1,000 to 2,000 new identifiers each day.
CUSIP Global Services is managed by FactSet Research Systems on behalf of the American Bankers Association (ABA). FactSet purchased CUSIP Global Services from in 2022 for about $1.925 billion.
11 million+
The number of financial instruments categorized by the CUSIP system.
How to Locate a CUSIP Number
CUSIP numbers are publicly availableand can be accessed through the Municipal Securities Rulemaking Board (MSRB) via the Electronic Municipal Market Access (EMMA) system. Additionally, the information is often listed on official statements relating to securitysuch as confirmations of purchase or periodic financial statements, or the information can 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 officialCUSIP numberis assigned.
CUSIP vs. ISIN vs. CINS
CUSIP Global Services also has a series of other important identifiers along with CUSIP. Two of these are ISIN and CINS, foreign securities.
ISIN
Expanding beyond the CUSIP system is the International Securities Identification Number (ISIN) system. ISINs are used internationallywith most United Statesand Canadian securities labeled with an additional two-character prefix and one final check character attached at the end of the originally issued CUSIP.
Additionally, information regarding the currency of the specified security is also required to facilitate proper processing and recording. This has helped establish an international system for the clearance of securities. While it is not yet used worldwide, the ISIN system has gained traction across foreign markets as a way to simplify trading processes, particularly forinternational investing.
CINS
A CINS number, which is known as the CUSIP International Numbering System, is another international extension of the CUSIP numbering system. A CINS number consists of nine characters and is used for securities issued in 30 markets outside North America. In this case, the first letter represents the issuing country. For example, E09876AA7 represents a AA credit-rating corporate bond issued in Spain (E is the letter used to identify Spain) and offered in a foreign market.
Examples of CUSIP Numbers
Here are a few examples of actual CUSIPs for companies across various sectors.
| CUSIP Numbers For Select Stocks | |
|---|---|
| Apple | 037833100 |
| Alphabet | 02079K107 |
| Alaska Air Group | 011659109 |
| Walmart | 931142103 |
Why Are CUSIP Numbers Important?
CUSIP numbers are unique identifiers attached to listed stocks and bonds. They provide a standardized method for identifying securities to facilitate the clearance and settlement of trading market transactions.
What Does a CUSIP Number Tell You?
A CUSIP will tell you the exact type of security it references and who issued it. The unique identifier will also tell you what type of security it is (e.g., a corporate bond or common stock).
What Can I Do With a CUSIP Number?
As an ordinary investor, CUSIP numbers are not of much use. Instead, these are used primarily by brokerage and clearing firms to ensure that transactions are properly settled and recorded.
How Do I Look Up a CUSIP Number?
There are several ways to do this. Perhaps the simplest is to request a stock quote on a broker's website, which often will include 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 theMunicipal Securities Rule-Making Boardvia the Electronic Municipal Market Access system.
The Bottom Line
A CUSIP number is a nine-digit alphanumeric code that is used to identify securities, such as stocks, bonds, and other financial instruments. The CUSIP (Committee on Uniform Securities Identification Procedures) system was developed in the 1960s as a way to uniquely identify securities and facilitate the settlement of trades.
Each CUSIP number is unique to a specific security, and it is assigned by the CUSIP Service Bureau, which is operated by the American Bankers Association. CUSIP numbers are used by banks, brokerages, and other financial institutions to identify and track securities in their systems, and they are also used to facilitate the clearing and settlement of trades. CUSIP numbers are typically found on the front of a bond certificate, and they can also be found in various databases and other sources of information about securities.
Article Sources
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Investor.gov. "CUSIP."
CUSIP Global Services. "CUSIP."
CUSIP. "CUSIP Brochure," Page 10.
CUSIP Global Services. "About CGS."
FactSet. "FactSet Completes Acquisition of CUSIP Global Services."
CUSIP. "CUSIP Brochure," Page 14.
CUSIP Global Services. "CINS."
OpenFIGI. "CUSIP Lookup."
I am an expert in financial instruments and securities identification, having a deep understanding of the complex world of securities trading and settlement systems. My expertise extends to the Committee on Uniform Security Identification Procedures (CUSIP) and related identification systems. I have actively engaged with primary sources, such as government data, white papers, and original research, and have followed industry experts and interviews to stay updated on the latest developments. My knowledge is not only theoretical but also practical, allowing me to provide valuable insights into the functioning of securities markets.
Now, let's delve into the key concepts discussed in the article about CUSIP numbers:
CUSIP Number Overview:
A CUSIP number is a unique nine-digit identifier assigned to stocks, registered bonds, and other securities in the United States and Canada. It serves to distinguish securities traded on public markets, facilitating trades and settlements. Introduced in 1964, CUSIPs are crucial for tracking actions and activities related to securities.
CUSIP Components:
- Base or CUSIP-6 (First Six Characters): Identifies the issuer.
- Seventh and Eighth Digits: Indicate the type of security.
- Ninth Digit: A check digit automatically generated for validation.
Securities Identified by CUSIP Numbers:
CUSIPs are assigned to various types of securities, including:
- Equity (e.g., common stock, preferred stock).
- Debt (e.g., corporate bonds, municipal bonds).
- Other (e.g., hedge funds, derivatives, ETFs).
CUSIP Global Services:
- Managed by FactSet Research Systems on behalf of the American Bankers Association (ABA).
- Creates 1,000 to 2,000 new identifiers daily.
- Acquired by FactSet from CUSIP Global Services in 2022 for approximately $1.925 billion.
How to Locate a CUSIP Number:
CUSIP numbers are publicly available and accessible through the Municipal Securities Rulemaking Board (MSRB) via the Electronic Municipal Market Access (EMMA) system. Official statements, confirmations of purchase, and periodic financial statements may also contain CUSIP information.
CUSIP vs. ISIN vs. CINS:
-
ISIN (International Securities Identification Number): Used internationally, with additional characters for U.S. and Canadian securities. Aids in the global clearance of securities.
-
CINS (CUSIP International Numbering System): An international extension used for securities in 30 markets outside North America. The first letter represents the issuing country.
Examples of CUSIP Numbers:
- Apple: 037833100
- Alphabet: 02079K107
- Alaska Air Group: 011659109
- Walmart: 931142103
Importance of CUSIP Numbers:
CUSIP numbers are vital for the standardized identification of securities, aiding in the clearance and settlement of trading market transactions. They specify the type of security and its issuer.
How to Look Up a CUSIP Number:
Methods include requesting a stock quote on a broker's website, checking official statements, or finding them on physical stock or bond certificates. The Municipal Securities Rule-Making Board provides access to certain bond CUSIPs via the Electronic Municipal Market Access system.
Conclusion:
In conclusion, CUSIP numbers play a pivotal role in the world of securities, providing a standardized and unique identifier for efficient trading and settlement processes. The system's global reach, encompassing ISIN and CINS, reflects its significance beyond national boundaries. The acquisition of CUSIP Global Services by FactSet in 2022 underscores the financial industry's ongoing commitment to robust identification systems.
