How Long Does it Take to Get or Obtain a CUSIP Number
Obtaining a CUSIP number can take anywhere from a few minutes to a few hours to a few days. Whether an issuer is issuing debt or equity, or the entity itself is a corporation, an LLC or a limited partnership (and even withing each entity there is also variations, i.e. hedge funds, mutual funds, venture and real estate funds and more) all are factors in determining the length of getting a CUSIP assigned. In addition, if a company does not meet the document requirements for obtaining a CUSIP than this can also hold up the application and increase the time to register the CUSIP or increase the likelyhood of being rejecgted for a CUSIP altogether. The time it takes to determine whether a CUSIP will be issued is therefore case by case..
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 typically in a North American exchange 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 needs.
CUSIP Structure
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
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.