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The acronym CUSIP historically refers to the Committee on Uniform Security Identification Procedures, which was founded in 1964, during thepaper crunch in Wall Street.[1] This 9-character alphanumeric code identifies any North American security for the purposes of facilitating clearing andsettlement of trades. The CUSIP distribution system is owned by the American Bankers Association and is operated by Standard & Poor's. The CUSIP Service Bureau acts as the National Numbering Association (NNA) for North America, and the CUSIP serves as the National Securities Identification Number for products issued from both the United States and Canada.
In the 1980s there was an attempt to expand the CUSIP system for international securities as well. The resulting CINS (CUSIP International Numbering System) has seen little use as it was introduced at about the same time as the truly international ISIN system. CINS identifiers do appear in theISIDPlus directory, however.
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[edit]Description
The first six characters are known as the base (or CUSIP-6), and uniquely identify the issuer. Issuer codes are assigned alphabetically from a series that includes deliberate built-in "gaps" for future expansion. The 7th and 8th digit identify the exact issue. The 9th digit is an automatically generated checksum (some clearing bodies ignore or truncate the last digit). The last three characters of the issuer code can be letters, in order to provide more room for expansion.
Issuer numbers 990 to 999 and 99A to 99Z in each group of 1,000 numbers are reserved for internal use. This permits a user to assign an issuer number to any issuer which might be relevant to his holdings but which does not qualify for coverage under the CUSIP numbering system. Other issuer numbers (990000 to 999999 and 99000A to 99999Z) are also reserved for the user so that they may be assigned to non-security assets or to number miscellaneous internal assets.
The 7th and 8th digit identify the exact issue, the format being dependent on the type of security. In general, numbers are used for equities and letters are used for fixed income. For commercial paper the first issue character is generated by taking the letter code of the maturity month, the second issue character is the day of the maturity date, with letters used for numbers over 9. The first security issued by any particular issuer is numbered "10". Newer issues are numbered by adding ten to the last used number up to 80, at which point the next issue is "88" and then goes down by tens. The issue number "01" is used to label all options on equities from that issuer.
Fixed income issues are labeled using a similar fashion, but due to there being so many of them they use letters instead of digits. The first issue is labeled "AA", the next "A2", then "2A" and onto "A3". To avoid confusion, the letters I and O are not used since they might be mistaken for the digits 1 and 0.
The 9th digit is an automatically generated check digit using the "Modulus 10 Double Add Double" technique[2]. To calculate the check digit every second digit is multiplied by two. Letters are converted to numbers by adding their ordinal position in the
== occupying the odd- and even-numbered places in the CUSIP, converting any letters to numbers if need be (not in this case):
US Treasury Note:
[edit]As pseudocode
algorithm Cusip-Check-Digit(cusip) is Input: an 8-character CUSIP Output: the check digit for that CUSIP sum := 0 for 1 ≤ i ≤ 8 do c := the ith character of cusip if c is a digit then v := numeric value of the digit c else if c is a letter then p := ordinal position of c in the alphabet v := p + 9 else if c = "*" then v := 36 else if c = "@" then v := 37 else if c = "#" then v := 38 end if if i is odd then v := v × 2 end if sum := sum + v div 10 + v mod 10 repeat return (10 - (sum mod 10)) mod 10 end function
[edit]See also
- Central Index Key
- International Securities Identifying Number (ISIN)
- ISO 10383
- ISO 10962
- ISO 6166
- NSIN
- Ticker symbol
- Option symbol
