🧾 CUSIP (Committee on Uniform Securities Identification Procedures)
US Capital Private Bank Knowledge Base
🔍 What is a CUSIP?
CUSIP stands for Committee on Uniform Securities Identification Procedures. It is a nine-character alphanumeric code that uniquely identifies a financial security in the United States and Canada. CUSIPs are used to track and trade securities, including:
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Stocks
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Bonds
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Mutual funds
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Government securities
CUSIPs are issued by CUSIP Global Services (CGS) and play a critical role in the identification and settlement of financial instruments.
🔢 CUSIP Structure
| Character Position | Description |
|---|---|
| 1–6 | Issuer identifier (company, government, etc.) |
| 7–8 | Issue identifier (specific issue or class) |
| 9 | Check digit for error detection |
Example: 594918104 – This is the CUSIP for Microsoft Corporation's common stock.
🏦 Purpose and Uses of a CUSIP
| Icon | Use Case | Description |
|---|---|---|
| 🏛️ | Settlement & Clearing | Ensures accurate and efficient settlement of trades between institutions. |
| 📊 | Trade Reporting | CUSIPs are used in trade reports to track specific instruments. |
| 🧾 | Securities Issuance | Required for registering and offering securities in the public market. |
| 🔐 | Regulatory Filings | Essential for SEC filings and other legal compliance requirements. |
| 💼 | Portfolio Management | Investment firms use CUSIPs to monitor and analyze portfolios. |
🌍 CUSIP in Global Markets
Although primarily used in North America, CUSIPs integrate with global systems such as:
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ISIN (International Securities Identification Number), which often includes the CUSIP as part of its structure.
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Euroclear and Clearstream, which require CUSIPs or ISINs for settlement.
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SWIFT messaging, where CUSIP codes are embedded in trade messages.
🧠 Quick Facts
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A CUSIP is required before a security can be publicly traded or cleared.
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The 9th digit is calculated using the Modulus 10 “Double Add Double” technique for error detection.
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Private placements often also receive CUSIP numbers for investor tracking.
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CUSIPs are foundational to bond structuring, MBS tranching, and bank portfolio reporting.
🔗 Related Terms
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ISIN – International Securities Identification Number
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SEDOL – UK equivalent identifier
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Bloomberg Ticker – Often associated with the CUSIP in databases
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Collateral Instruments – CUSIPs are essential in identifying instruments used as collateral
🏦 Contact US Capital Private Bank
📧 Email: [email protected]
🌐 Website: https://uscapitalprivatebank.com
📞 Phone: +971529926005
🎥 Learn more about structured finance and security identification:
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