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What is the CUSIP Number?

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03 Nov 2023

Key Highlights

Understanding CUSIP Meaning

CUSIP numbers are used to identify securities across various financial systems. By using them, trade settlement, record keeping, and regulatory compliance can be made more efficient.

American Bankers Association (ABA) manages CUSIP through its CUSIP Service Bureau. The bureau assigns CUSIP numbers to securities and maintains a database of CUSIP identifiers. Originally intended for U.S. securities, CUSIP numbers are now used internationally for certain securities, improving global connectivity.

The CUSIP number is used by financial institutions, brokerage firms, custodians, and other market participants to track and manage securities. The CUSIP number is also commonly used for reporting, research, and reference.

How Do CUSIP Numbers Work?

After understanding the CUSIP definition, let us examine how it works. CUSIP numbers are unique identifications associated with the equity, debt, and other assets of a corporation, just like stock symbols. The number consists of nine digits and is similar to a serial number: CUSIP numbers consist of three parts.

Examples of CUSIP Numbers

CUSIP numbers are assigned by the American Bankers Association's CUSIP Service Bureau. The following are a few examples of numbers:

The examples above show the wide range of securities with numbers, including stocks, bonds, index funds, and others. These numbers give financial institutions a standardised method to identify securities, making tracking, reporting, and trading easier.

A CUSIP number may change over time because it is assigned by the American Bankers Association's CUSIP Service Bureau. Please note that the examples provided above are for illustrative purposes only and do not necessarily represent the most current or accurate numbers.

How to Find a CUSIP Number?

You can look up CUSIP numbers for municipal securities on the MSRB's Electronic Municipal Market Access (EMMA) website. The steps are as follows: 1. Go to the EMMA website: Check out the EMMA website at emma.msrb.org.

2. Search for security: To find municipal security, type its name or description into the search box on the EMMA homepage. You can conduct a search using the issuer's name, the security's name, or any other information relevant to the search.

3. Access the security information: Click on the security you're searching for in the search results to get more information.

4. Find the CUSIP number: Security details should include the CUSIP number and other important information about the security. Often, the number is displayed publicly as a unique identification for security.

5. Check the information: Make sure the number is correct by double-checking it. The best way to confirm is to cross-reference with other sources or official documents.

ISIN vs CUSIP

ISIN and CUSIP are codes for identifying securities. Both codes have different structures and apply to different things. CUSINs are only used in the US and Canada, but ISINs are used to identify securities and facilitate their buying and selling everywhere. CUSIP is owned by the American Bankers Association and managed by Standard & Poors, while the International Organisation for Standardisation runs ISIN. The points below will help you understand ISIN vs CUSIP more clearly.

ISIN vs CUSIP

Criteria

Full Form

ISIN

ISIN full form is International Securities Identification Number

CUSIP

CUSIP full form is Committee on Uniform Securities Identification Procedures

Criteria

Structure

ISIN

In ISIN, the first two letters are the country code, followed by nine alphanumeric characters known as the national security identifier.

CUSIP

It has nine alphanumeric characters.

Criteria

Coverage

ISIN

Across many nations, ISINs are assigned to a wide variety of securities, including stocks, bonds, options, and derivatives.

CUSIP

In the United States and Canada, numbers are assigned to stocks, bonds, mutual funds, and other financial instruments.

Criteria

Administration

ISIN

The ISIN system is governed by the International Organisation for Standardisation (ISO)

CUSIP

It is managed by the American Bankers Association (ABA).

Criteria

Uses

ISIN

The ISIN is widely accepted in international markets and many countries outside of North America.

CUSIP

A wide range of North American financial institutions, regulators, and market players use these numbers.

Criteria	ISIN	CUSIP
Full Form	ISIN full form is International Securities Identification Number	CUSIP full form is Committee on Uniform Securities Identification Procedures
Structure	In ISIN, the first two letters are the country code, followed by nine alphanumeric characters known as the national security identifier.	It has nine alphanumeric characters.
Coverage	Across many nations, ISINs are assigned to a wide variety of securities, including stocks, bonds, options, and derivatives.	In the United States and Canada, numbers are assigned to stocks, bonds, mutual funds, and other financial instruments.
Administration	The ISIN system is governed by the International Organisation for Standardisation (ISO)	It is managed by the American Bankers Association (ABA).
Uses	The ISIN is widely accepted in international markets and many countries outside of North America.	A wide range of North American financial institutions, regulators, and market players use these numbers.

Conclusion

CUSIP numbers serve as unique identifiers for stocks, bonds, mutual funds, and options. They help distinguish one investment from another, ensuring proper tracking and reporting. Through these numbers, financial markets can quickly and precisely identify securities during trading and settlement. With numbers, investors can verify their assets, reducing the risk of misinterpretation or deception.

FAQs on CUSIP Number

Is ISIN and CUSIP the same?

No, they are not the same. The CUSIP is a nine-digit standard for identifying securities, but it is only used in the United States and Canada. The ISIN is a twelve-character number used to identify securities globally as a unique identifier.

Can you convert CUSIP to ISIN?

It can be tricky to convert, but there is a way to do it. With ISIN.net, you can convert CUSIPs to ISIN codes quickly and efficiently.

Can CUSIP be reused?

A CUSIP can change over time, but it is never reused.

What Is the Importance of CUSIP Numbers?

CUSIP numbers serve as unique identifiers for stocks and bonds. To facilitate the clearing and settlement of trading market transactions, they provide a standard method for identifying securities.