Corporate Action Information for Agents

The Depository Trust Company (DTC) provides a wide array of services for processing corporate action events for the approximately 3.5 million securities eligible at the depository. Agents have the obligation to notify DTC of all actions to a security, including distributions, redemptions, and reorganizations. This webpage is intended to facilitate communication between DTC and agents in regards to corporate actions by providing instructions and other documentation required for DTC to process corporate action events.

Distributions

DTC’s Corporate Actions Processing Service for Distributions provides full lifecycle processing. The Distributions service includes processing events such as cash and stock dividends, principal and interest (P&I), capital gain distributions, return of capital, spin-offs, stock splits, and other events that arise from the servicing of the approximately 3.5 million securities eligible at the depository. P&I Cash Processing interacts with over 7,000 paying agents and issuers annually to facilitate the allocation of P&I entitlements to DTC participants on the scheduled payment date.

The following documents should be used for communicating distribution announcements to DTC.

Redemptions

DTC’s Corporate Actions Processing Service for Redemptions provides full lifecycle processing. The Redemptions service includes events such as full and partial calls, final paydowns, maturities, full and partial pre-refundings, partial defeasances, terminations, and other events that arise from the servicing of securities eligible at the depository.

The following documents should be used for communicating redemption announcements to DTC.

Reorganizations

DTC’s Corporate Actions Processing Service for Reorganizations provides full lifecycle processing, including sourcing and announcing the details of upcoming events, accepting and acting on instructions, and collecting, allocating, and reporting on the resulting entitlements. The Reorganizations service includes the announcement and processing of events such as exchange offers, conversions, Dutch auctions, mergers, puts, reverse stock splits, tender offers, rights and warrant exercises, and other events arising from the servicing of the securities eligible at the depository.

The following documents should be used for communicating reorganizations announcements to DTC.

  • The Null/Void/Worthless Letter Template provides agents with the required verbiage to initiate a mandatory corporate action that authorizes DTCC to delete/cancel a participant position on its books and records. The letter contains the required indemnification language to confirm that the securities are deemed null, void, and worthless, and that there will be no future payments. Completed documents can be sent to: MandatoryReorgAnnouncements@dtcc.com
  • The Stock Maturity Notice Template provides agents with the required information to notify DTCC of a maturity for stock event. Typically, maturities are for cash and are processed by the redemptions team. However, when the maturity is being paid through the issuance of stock, the notification must be sent to the mandatory announcements team and must contain all of the critical information listed on this template in order for the event to be announced and processed. Completed documents can be sent to:MandatoryReorgAnnouncements@dtcc.comm
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