Unlocking the Mystery of Dummy CUSIP Numbers: Essential Insights for Investors
Discover what a dummy CUSIP number is, how it functions as a temporary identifier for securities, and why it matters in the financial world. Learn about its role in the securities market and how to locate official CUSIP numbers efficiently.
What Exactly Is a Dummy CUSIP Number?
A dummy CUSIP number is a provisional nine-character alphanumeric code assigned internally by companies to identify a security before its official CUSIP number is issued. This temporary identifier helps streamline internal security tracking prior to formal registration.
Key Points to Remember
- Dummy CUSIP numbers serve as placeholders until the official nine-character identifier is assigned.
- Official CUSIP numbers are essential for identifying U.S. and Canadian securities in trading and settlement processes.
- These dummy codes are provided by CUSIP Global Services (CGS), overseen by S&P Global Market Intelligence on behalf of the American Bankers Association.
The Purpose and Structure of Dummy CUSIP Numbers
Acting as temporary placeholders, dummy CUSIPs reserve a unique identifier slot for securities before their permanent number is finalized. While primarily for internal use, some dummy numbers may persist indefinitely or be assigned to securities no longer active.
The structure of a CUSIP includes the first six characters identifying the issuer, followed by two characters specifying the security type (equity or debt), and a final check digit to verify accuracy.
Dummy CUSIPs differ from official ones by certain character placements, such as incorporating the number 9 in specific positions to distinguish them.
Understanding North American CUSIPs Versus International CINS
CUSIP numbers uniquely identify all equity and registered debt securities in the U.S. and Canada, facilitating clear differentiation and efficient settlement in public markets.
Internationally, a similar system called the CUSIP International Numbering System (CINS) extends this concept to foreign securities, characterized by a nine-character code starting with a letter that indicates the issuer's home country.
How to Locate a CUSIP Number
Accessing official CUSIP numbers can be challenging, often requiring paid subscriptions to databases managed by Standard & Poor’s or equivalent entities. Nevertheless, many companies publish their CUSIP numbers online for investor reference.
Additional resources include the Municipal Securities Rulemaking Board's Electronic Municipal Market Access (EMMA) system and documentation like purchase confirmations and financial statements. Securities dealers can also provide CUSIP information.
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