CUSIP stands for Committee on Uniform Security Identification Procedures, and it is an alphanumeric system used to uniquely identify all publicly traded stocks and bonds in the United States and Canada. The current form was created in 1968 and was based on earlier versions that began during the 1960's.

The concept behind CUSIP was to create a standardized way of identifying a security. Before CUSIP numbers, the process of tracking a security was a time consuming and confusing process - Which version of the same security was being traded? Was it a bond or a stock? Was it a registered or unregistered security? All of these types of questions had to not only be identified, but also tracked.

A CUSIP number consists of nine characters (including numbers and letters) and is typically printed on the certificate representing the security or included in the documentation associated with the security. The first six characters of the CUSIP number identifies the issuing issuer and are often referred to as the "issuer prefix". The seventh and eighth character is typically a digit and the ninth character is a check digit, which is based on a mathematical formula.

CUSIP numbers are used in a variety of ways. They are vital in the daily operations of stock exchanges, brokers and fund managers, who use them to facilitate trade and settlement activities. They are used to identify and clear trades, allocate shareholdings, and process dividends and other payments.

Since the introduction of CUSIP in 1964, these numbers have become invaluable to investors, businesses and financial institutions around the world. They have established a system of global uniqueness, standardization, speed and accuracy for safety and security during stock and bond trading. As a result, securities can be rapidly settled, traded and processed in an efficient, accurate and cost effective manner.