To convert a CUSIP (Committee on Uniform Securities Identification Procedures) to an ISIN (International Securities Identification Number), you need to follow these steps:
- Start with the CUSIP number: A CUSIP is a 9-character alphanumeric code that uniquely identifies securities, primarily in the United States. It’s made up of 6 characters for the issuer, 2 characters for the issue, and 1 check digit.
- Add the country code: An ISIN is a 12-character code, and the first two characters are the country code. For example, if the security is issued in the United States, the country code would be “US”.
- Include the CUSIP: After the country code, you use the CUSIP number (without the check digit).
- Generate the check digit for ISIN: The last step is to generate the ISIN’s check digit. This is done using the Luhn algorithm (a checksum formula) to ensure the integrity of the code.
For example:
- If the CUSIP is “037833100” (a popular example of an Apple Inc. stock CUSIP):
- You would start with the country code “US”.
- Add the CUSIP without the check digit: “037833100”.
- The result would be “US037833100”.
- Finally, you apply the Luhn algorithm to get the check digit and add it to form the full ISIN.
In practice, this process is usually handled by financial data providers or institutions with the necessary software to handle the validation and generation of ISINs.
Leave a comment