Money Market Instrument Eligibility

The Money Market Instrument (MMI) Program allows Issuing and Paying Agents (IPAs) to submit requests to make new Money Market Instrument (MMI) issues eligible for settlement at DTC.

About

MMIs are securities or other financial instruments with short maturities, typically 270 days or less. MMIs play a critical financing role in the market place. Fourteen MMI types are eligible for the MMI Program, including institutional CDs, corporate and municipal CP, medium-term notes (MTN), STBN and medium-term bank notes (MTBN).

Who Can Use the Service

DTC participants that have qualified as Issuer and Paying Agents are eligible to use the service; all Participants may purchase or present for maturity in the ordinary course of business.

Benefits

The MMI Program enhances capital market efficiencies and reduces costs to the industry by enabling MMI securities to be distributed, settled and serviced through DTC’s automated processes. DTC’s straight-through processing mitigates risk for the industry through automation and standardization.

How the Service Works

IPAs seeking DTC eligibility for MMI issues must complete and submit to DTC via its MMI-WUN web-based application the following documentation:

  • Program-level details including the IPA’s DTC account number, issuer name, SEC registration or exemption information, issuer contact information, state/country of domicile and program features (e.g., indexed to principal, variable rate, reedeemable prior to maturity).
  • MMI product-specific Letter of Representations (LOR).
  • MMI Certificate Master Note /Global Certificate Agreement (executed by IPA upon becoming an IPA)
  • Exhibit A (amendment to MMI certificate agreement listing the issuer name and CUSIP base).
  • CUSIP base numbers issued by the CUSIP Service Bureau representing the issuer’s program (e.g., discount CP, MTN).

DTC may also require additional documentation as deemed necessary.

After reviewing and approving a submission, the Underwriting group produces the MMI issuer control table (ICT). The MMI ICT allows the IPA to create an issuance instruction. The MMI issuance instruction adds the CUSIP and security-level details (e.g., interest rate, maturity date, payment frequency) to DTC’s masterfile. Additionally, it creates an MMI deposit in the IPA’s DTC account, a maturity obligation (MO), and a delivery (free or valued) of the deposited MMI from the IPA’s account to the specified account of one or more other DTC participants (e.g., the receiving participants) on settlement date.

For More Information

Please contact Client Support at 866-724-4402

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