CINS Number - Explained
What is a CINS Number?
Written by J. Mance Gordon
Updated at April 23rd, 2024
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What is a CINS Number?
A CINS number, an extension of the CUSIP system, is an International Numbering system for identifying securities not offered within the United States and Canada. In fact, it stands for CUSIP International Number System. The number is usually offered to facilitate the clearing as well as the settlement of trades. CINS number is used to identify international securities in North America, whether municipal or corporate. CUSIP is an abbreviation of Committee of Uniform Security Identification Procedures.
How Does a CINS Number Work?
In 1989, CINS was developed for the purpose of extending the CUSIP system to international traded securities. Currently, there are different securities entries of about 1.3 million. The CINS number comprises of 9 characters. The first digit of CINS number represents the geographic region or country of the issuer. An issuer is usually allocated 6 unique digits. Two characters that follow are used to identify the issuers security issues. A mathematical formula is finally used to determine the final digit. This checks how accurate the previous 8 digits are. Note that several systems do exist. However, the CINS code can neither be interchanged nor substituted across the systems. Keep in mind that when using CINS, you must use it together with CUSIP and ISINs systems.
What Functions does CINS Number Serve?
Basically, the American Bankers Association is the one that owns CINS and it is managed by Standard and Poor. There are several functions that the CNIS code serves. They are as follows:
- Unlike ISINs, CINS and CUSIP are what make North America system different from the other parts of the world. In other words, CINS is a special code used globally to help identify securities in diverse countries. This is for facilitating trade across the border.
- CINS numbers are essential when resolving securities transactions.
- It also ensures that financial institutions are able to report to authorities each of their transactions.
Key Takeaway
A CINS number, an extension of the CUSIP, is an International Numbering system for identifying securities not offered within the U.S. and Canada.
- In 1989, CINS was developed for the purpose of extending the CUSIP system to international traded securities.
- The CINS code cannot be interchanged nor substituted across the systems.
- American Bankers Association is the one that owns CINS and it is managed by Standard and Poor.