Other Service Providers
By the time the pricing of an issuance is finalized, the underwriter must apply to the MSRB in writing for the assignment of a CUSIP number for the new security. CUSIP (the Committee on Uniform Securities Identification Procedures) is a system that facilitates the clearing and settlement process of securities. The CUSIP system identifies securities by assigning them a number. A CUSIP number generally consists of nine characters that uniquely identify an issuer and the type of security. CUSIP numbers are assigned by the CUSIP Service Bureau and are used to identify most securities, including government securities, municipal and corporate bonds, and all registered U.S. stocks.
For a negotiated sale, the application for a CUSIP number must be filed no later than the time that the issuer and underwriters agree on a final price. The timing must be sufficient to allow the MSRB to assign a number prior to the Time of Formal Award.
For a competitive bid underwriting, the underwriter must file an application with the MSRB immediately after it receives the award from the issuer. The underwriter must ensure that CUSIP numbers are assigned before making public the Time of First Execution (defined below).
The Time of Formal Award is the time at which pricing is finalized for a new issue for competitive bid underwritings. This is also when the issuer formally selects the underwriter. For negotiated issues, it is when the bond purchase agreement is signed.
Time of First Execution means the time the underwriter plans to execute its first transactions for the new issue. In general, the Time of First Execution must be at least two business hours after all required information has been transmitted to the MSRB and Depository Trust Company (DTC).
Around the time that the underwriter applies for a CUSIP number, issuers must apply for new issue eligibility at a registered securities depository. A securities depository is a facility where sec