CUSIPs

CUSIPs, or Committee on Uniform Securities Identification Procedures numbers, are unique alphanumeric identifiers used to identify securities in the United States and Canada. They are designed to facilitate the clearance and settlement of trades by providing a standardized way to identify financial instruments such as stocks, bonds, and other securities.

The CUSIP system was introduced in 1964 by the American Bankers Association and the Standard & Poor's (S&P) organization. A typical CUSIP consists of nine characters: the first six identify the issuer, the next two identify the specific issue, and the final digit is a check digit used for validation.

CUSIPs serve multiple functions in the financial industry, including streamlining trading, risk management, and record-keeping processes. They are widely used by brokers, investment managers, and financial institutions to quickly and accurately identify securities during transactions and reporting.

The ownership and management of CUSIP numbers are handled by CUSIP Global Services (CGS), which is operated by S&P Dow Jones Indices. CGS maintains the CUSIP database, assigns new identifiers, and updates existing ones as necessary.

In addition to the standard CUSIP, there are related identifiers such as the CINS (CUSIP International Numbering System) for foreign securities and the ISIN (International Securities Identification Number) which integrates CUSIP information into a global framework.

Overall, CUSIPs are an essential component of modern financial markets, providing a consistent and reliable method for identifying securities across various platforms and jurisdictions.