Apply for a CUSIP Number
A CUSIP number is a 9-character alphanumeric code that identifies a security (like a stock or bond, debt or equity) for the purposes of facilitating clearing and settlement of trades. CUSIPs also identify at the securities level, much like the ISIN code, and are used to distinguish, among other reasons, between multiple share classes or bond tranches that companies issue. CUSIPs are mainly used in the United States and Canada.
CUSIP numbers are issued to both private and public companies, hedge funds, mutual funds, private equity, corporation, LLCs and much more. CUSIPs are also assigned to offshore entities in over 30 jurisdictions (such as Cayman funds, BVI funds etc). Those corporation that are conducting an initial public offering are also often required to register a CUSIP number. Equity securities such as stocks, or preferred shares stock, warrants, rights offering and others can obtain CUSIPs. For debt securities, bonds, notes, loans, MTNs syndicated and others also can register for a CUSIP.
If you are seeking to obtain a CUSIP identifying number and need assistance in this process, our team can help. We have assisted scores of companies over the years receive their CUSIP and ISIN numbers.
A CUSIP number consists of a digit alphanumeric code (the ISIN, as a contrast, is 12 characters in length).
CUSIPs are made up of several ‘parts’, the first being the ‘base’, or the first six alphanumeric characters. Of the nine characters, seven and eight determine the type of issuing company. The last character is the check digit or checksum. CUSIPs are used by both US and Canadian companies that wish to either clear and settle trades, identify their equity or debt securities and more.
Apply for a CUSIP
To apply and register an ISIN number is usually achieved by drafting the proper documentation and then applying for the correct CUSIP issuance identifier. For a public company usually a prospectus is needed, while for a private company seeking to raise capital a private placement memorandum or offering memorandum is needed. There are many varying documents that are required to obtain a CUSIP number. Click here to see a list of documents that may be required. CUSIP DOCUMENTS
Why Get a CUSIP Number
An CUSIP number is a standard code that is needed by many different types of companies. The numbers help identify a security, much like a social security number does for a person. For cross border trading, an ISIN number is imperative for clearing and settlement.
Reasons for adopting CUSIP codes
- It provides a simple, clear and uniform method for securities clearance and settlement.
- It allows easy tracking of stock holdings of various investors in a universal accepted format that is used across various countries.
- It makes clearance and settlement of the transactions faster through electronic means and prevents human interference.