What is CUSIP as North American Financial Security ID?

CUSIP (Committee on Uniform Security Identification Procedures) is an alphanumeric code that uniquely identifies a North American (United States and Canada) financial security for the purposes of facilitating clearing and settlement of trades.

The CUSIP system (cusip.com) is owned by the American Bankers Association (ABA) and is operated by FactSet Research Systems Inc. through operated CUSIP Global Services (CGS).

A CUSIP is a nine-character alphanumeric code using the following format:

CUSIP #: BBBBBBIIC
where:
  BBBBBB: 6-character base code representing the issuer. 
  II: 2-character issue code representing the security being issued.
  C: 1-digit checksum of preceding 8 characters. 

Additional conventions are also followed in CUSIP codes.

• Special characters '*', '@' and '#' are used for private placement numbers (PPNs) in the issuer code for the insurance industry.
• Numbers are used for equities in the security code "II".
• "10" is used for the first security of the issuer.
• Letters are used for fixed income debts in the security code "II".
• Letters I and O are not used in security code "II" to avoid confusion.
• The Luhn algorithm with "Modulus 10 Double Add Double" technique is used to generated the checksum digit.

Here is an examples of CUSIP code, 303075105, for the Common Stock of FactSet Research Systems Inc.

303075 10 5
------ -- - 
|      |  |- the checksum 
|      |---- the first security code issued by FactSet
|----------- the base code for FactSet Research Systems Inc.

Here is another examples of CUSIP code, 912810TX6, for the 30-year bond issued by US Treasury on 2024-02-15.

912810 TX 6
------ -- - 
|      |  |- the checksum 
|      |---- the fixed income security code
|----------- the base code for US Treasury

There is also a special format used in CUSIP codes for TBA (To Be Announced) mortgage-backed securities:

CUSIP #: PPTCCMMK
where:
  PP: 2-character product code: single-family mortgage, ARM, Balloon, etc 
  T:  1-character type code: Ginnie Mae, Fannie Mae, Freddie Mac
  CC: 2-character coupon code
  MM: 2-character for maturity and settlement month
  K:  1-digit checksum of preceding 8 characters. 

For the more information, visit CUSIP Website.

⇒ CUSIP Checksum Algorithm

⇐ Introduction on CUSIP

⇑ Introduction on CUSIP

⇑⇑ CUSIP - North American Financial Security ID