“CUSIP is an acronym for the Committee on Uniform Security Identification Procedures. The CUSIP Service Bureau, operated by Standard & Poor’s, administers this system and assigns unique numbers (CUSIP numbers) and standardized descriptions of securities. A company is required to obtain a CUSIP number in connection with a registered offering and certain types of unregistered offerings (such as a Rule 144A offeringand a Regulation S offering).
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Each security issued by a company has its own CUSIP number, which is a nine-digit identifier composed of both numbers and letters. Typically all securities issued by the same issuer have the same first six digits; the last three digits represent the specific type of security.
For more information on registered offerings, see Practice Note, Registration Process: Overview. See also Practice Note, Conducting an Unregistered Offering: Overview for information on unregistered offerings.”
Structure of a CUSIP
The CUSIP number consists of:POSITIONDESCRIPTION1-6Identifies the issuer (CUSIP-6)7-8Identifies the specific issue9Check digit (used for validation)
Purpose and Usage
CUSIPs are essential for:
- Facilitating the clearance and settlement of securities.
- Helping investors and analysts identify specific securities.
- Managing transactions and historical data by custodians and depositories.
Coverage
The CUSIP system covers a wide range of financial instruments, including:
- Stocks of registered U.S. and Canadian companies
- U.S. government and municipal bonds
- Commercial paper
- Derivatives and options
Additionally, the CUSIP International Numbering System (CINS) extends this identification to non-North American securities.
CUSIPs are managed by CUSIP Global Services, which operates under the American Bankers Association.