Capital Markets Insight: How to Know When You Need a Temporary CUSIP Number for Reopenings

If you are involved in issuing or trading securities, you are familiar with CUSIP numbers, the nine-digit alphanumeric codes that identify specific securities in the United States and Canada. What you may not know is that sometimes you will need a temporary CUSIP number (also known as a contra CUSIP) in connection with a reopening (or a “tap”) of a series of outstanding debt securities. In a reopening, the issuer will issue and sell additional debt securities having the very same terms and conditions as those that are already outstanding with the intention of having the additional securities form part of the same series. However, depending on the timing or circumstances of the reopening, the additional debt securities may require a temporary CUSIP number in order to distinguish these from the issued and outstanding securities. This distinction is essential to ensure that clearing systems, underwriters, and beneficial owners receive the correct economic and regulatory treatment.

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