The CUSIP-linked MIP code (CLIP) is used in the

financial derivative In finance, a derivative is a contract that ''derives'' its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and is often simply called the "underlying". Derivatives can be u ...

s markets to identify the reference entity of a

credit default swap A credit default swap (CDS) is a financial swap agreement that the seller of the CDS will compensate the buyer in the event of a debt default (by the debtor) or other credit event. That is, the seller of the CDS insures the buyer against som ...

. It is mainly used as a key field in Markit's reference entity database (RED). Each CLIP is linked with one or more CUSIPs each representing reference entity obligations (

securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...

). For example, CLIP of WESTLAB AG (reference entity) is 'DMFCCI'. There are multiple issues from WESTLAB AG each with different CUSIPs (D96637AG4, D96637AH2, D96637AK5 etc.). MIP is a synonym of Markit Partners. CLIP is known with multiple names like Markit RED code, RED CLIP or simply CLIPS. S&P and Markit Partners introduced CLIP concept and entity CLIP codes are generated by the S&P CUSIP Bureau CUSIP Bureau
/ref> and are assigned to each entity name individually. CLIP codes are used for electronic matching on DTCC and have been integrated in various online platforms.

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External links

Markit RED Index Codes
{{Derivatives market Financial markets Financial metadata Security identifier types

See also

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External links