FAQ For CUSIP Code
A CUSIP code (Committee on Uniform Security Identification Procedures) is a unique identifier assigned to financial instruments, such as stocks, bonds, and mutual funds. It is used to facilitate the trading and tracking of securities.
CUSIP codes are assigned by CUSIP Global Services, a division of the American Bankers Association (ABA). They are widely accepted as the standard for identifying securities in North America.
A CUSIP code typically contains nine characters, which may include letters and numbers. The code itself doesn’t provide information about the security; instead, it serves as a reference that can be used to look up information in databases and financial systems.
While CUSIP codes are widely used in North America, they are not an international standard. Other regions, such as Europe, use different identifiers like ISIN (International Securities Identification Number) and SEDOL (Stock Exchange Daily Official List).
A CUSIP code is composed of three parts: a six-character issuer identifier, a two-character issue identifier (which can be a letter or number), and a single check digit. The format is typically as follows: XXXXXXYYZ.
The check digit is used to ensure the accuracy of the CUSIP code. It is calculated based on the preceding eight characters and is used to detect errors or typos when entering the code.
CUSIP codes are assigned to a wide range of securities, including stocks, bonds, municipal bonds, government securities, mutual funds, and other financial instruments.
You can find CUSIP codes for specific securities through financial news websites, online databases, brokerage platforms, or by contacting the issuer or the issuer’s transfer agent. Some financial data providers also offer CUSIP lookup services.
Yes, in certain cases, a single security may have multiple CUSIP codes. This can occur due to factors like changes in the issuer, reclassifications, or mergers and acquisitions.
While CUSIP codes are not mandatory for trading, they are widely used by financial institutions, regulators, and market participants to uniquely identify securities and streamline processes.
CUSIP codes are typically assigned to publicly traded securities and are not issued for personal investments like privately held assets or real estate.
CUSIP codes may change in certain situations, such as corporate actions, mergers, or reorganizations. It’s important to stay updated on any changes that may affect your holdings.
While CUSIP codes are primarily used in North America, they may also be referenced in international contexts, especially for securities with a significant presence in North American markets.
No, CUSIP codes are not typically assigned to cryptocurrencies. Cryptocurrencies have their own identification systems, such as blockchain addresses.
Yes, CUSIP codes are commonly used for mortgage-backed securities (MBS). MBS are financial instruments created by pooling together a large number of individual mortgage loans. Each MBS is assigned a unique CUSIP code to identify it in the marketplace. Investors and financial institutions use CUSIP codes to track and trade these securities.
Generally, CUSIP codes are not used to directly access information about the individual mortgage loans within an MBS. Instead, information about the underlying mortgages is typically available through the issuer of the MBS or specialized data providers. CUSIP codes primarily serve as identifiers for the MBS itself, making it easier for investors and institutions to trade and reference these securities in financial systems.