Request For Comments – CUSIP Permanence for Corporate and Mutual Fund Name Changes

CUSIP Global Services is seeking comment from industry participants with regards to a change in CUSIP assignment procedures, hereafter referred to as “CUSIP Permanence,” in which the CUSIP identifier will remain the same for corporate and mutual fund name changes even when there is a significant impact on the alpha-numeric sequencing within the CUSIP system. Further details and an example of CUSIP Permanence are laid out below.

Please click here to submit your comments. We will respond to any questions submitted with your comments.

The current procedure requires a new CUSIP to be assigned for corporate and fund name changes when there is a significant change in alphabetical sequencing between the old and new entity name. CUSIP Permanence would keep the same CUSIP for corporate and fund name changes with the impact that the normal CUSIP alpha-numeric sequencing would no longer be maintained for the new name. The CGS ISIN associated with the CUSIP would also remain the same.

Currently, the CUSIP already remains the same for slight corporate and fund name changes that do not significantly alter the alpha-numeric sequencing.

CUSIP Permanence would be implemented only for corporate and fund name changes starting in 2021. CUSIPs assigned for previous name changes are not impacted.

New CUSIPs would continue to be assigned in alpha-numeric sequence for new issuers including IPOs and other new offerings.
New CUSIPs would continue to be assigned for other corporate actions, including the following:

Merger or reorganization in which a new legal entity is created
Chapter 11 bankruptcy reorganization
Reverse stock split
Forward stock split with mandatory exchange of shares

Here is a comparison of the current procedure and CUSIP Permanence for a corporate name change:

Current procedure (new CUSIP):

New CUSIP assigned for a company name change that alters alphabetical sequence between the old and new name. CUSIP alphabetical sequence is maintained with new CUSIP for new name.

Old name and CUSIP

New name and CUSIP

CUSIP Permanence (same CUSIP):

This example highlights an identifier if CUSIP Permanence procedure was in effect at time of name change.

CUSIP remains the same for a company name change even when the alphabetical sequence changes between the old and new name. CUSIP alphabetical sequence would no longer be maintained with the new name.

CUSIP for common stock remains the same for the new name: 189754 10 4

Please click here to submit your comments. We will respond to any questions submitted with your comments.

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Request For Comments – CUSIP Permanence for Corporate and Mutual Fund Name Changes

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