DTCC is in a unique position to provide efficiency, reduce risk and lower costs for the issuer and ultimately the investor.

As an issuer, you know what happens when you initiate a stock offering. You contact your investment banker who, in turn, structures and underwrites the offering. But what happens after that, and how does the new issue get to market?

DTCC provides a variety of services to assist issuers in this increasingly complex financial services arena. For almost 40 years, DTCC has worked to automate and streamline the processing of securities, reducing risk and bringing cost-savings to the financial services industry, resulting in a range of services that benefit issuers and their shareholders.

With the growing complexity and regulatory requirements facing the issuer community, whether in the guise of corporate governance recordkeeping or the use of OTC derivatives to hedge investment strategies, DTCC is in a unique position to provide efficiency, reduce risk and lower costs for the issuer and ultimately the investor.

For more information on how DTCC services for issuers can streamline your business, write to issuerinfo@dtcc.com.

Life Cycle of a Security

While issuers may know DTCC because of Security Position Reports or Underwriting Services, many may not be aware of the other services DTCC offers the issuer.

DTCC boosts efficiencies and reduces costs for issuers and corporations by helping to automate the entire life cycle of a security, working directly with the issuer or with their authorized third-party agents. DTCC's services begin with the initial public offering, move on to maintain custody, make electronic "book-entry" changes to ownership of securities, service the assets by announcing, collecting, allocating and reporting payment of dividends and interest, process corporate actions and, finally, manage the retirement of the security.

Sponsored by DTCC and published by Lightbulb Press, this booklet, the Life Cycle of a Security, is intended to provide a "plain English" explaination of the role The Depository Trust Company (DTC) plays in launching new securities issues. 

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Guide to Clearance and Settlement

Guide to Clearance & Settlement is an overview of The Depository Trust & Clearing Corporation (DTCC), whose sophisticated infrastructure and risk management systems provide essential services to US and global capital markets. The guide looks, as well, at the increasing number of solutions DTCC provides for financial firms at home and around the world.

Sponsored by DTCC and published by Lightbulb Press, this booklet, the Guide to Clearance and Settlement, is intended to provide a "plain English" explaination of the role The Depository Trust Company (DTC) plays in clearing, netting, and settling -- the essential elements of post-trade processing -- and the role of a central counterparty in ensuring completion of equity and fixed-income transactions.

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Security Position Reports/Proxy

Issuers, trustees or issuer-authorized agents can request Security Position Reports (SPRs) from DTCC to obtain the information needed to contact shareholders on corporate-related events such as annual meetings. Read More

Underwriting Services

Underwriting Services is the starting point at DTC for all securities offerings.

Through the service's New Issue Eligibility program, underwriters can distribute both primary and secondary offerings of securities quickly and economically via electronic book-entry delivery and settlement. These newly issued securities are then available for the full range of depository services.

Additional capabilities offered within Underwriting include the Money Market Instrument (MMI) Program, the Initial Public Offering (IPO) Tracking Service and the New Issue Information Dissemination System (NIIDS) for Municipal Securities.

Direct Registration System (DRS)

DRS allows investors to have securities registered in their name in book entry form without the issuance of physical certificates. Book entry registration helps to keep issuers’ costs down, which in turn adds to shareowner value.

• The elimination of certificate printing, storage, insurance costs and postage to mail them to stockholders;
• Reduction in administrative costs associated with lost certificate processing, related shareholder inquiries and correspondence;
• Elimination of losses due to presentation of previously cancelled or counterfeit certificates
• When a corporate action occurs, issuers are no longer tied up researching and processing unexchanged certificates

Benefits to shareholders include

• Reducing the risks and costs associated with storing certificates and replacing those that are lost or stolen
• Ability to transfer stock to a new holder without the need to present a physical certificate
• Flexibility to trade at any time and no risk of "missing the market" because of delays associated with the handling of physical certificates

Proxy Service

DTC's Proxy Service provides communication between depository participants and issuers whose securities are eligible for deposit. The most common types of information communicated are: shareholders' annual or special meetings, consent solicitations, bankruptcies, legal notices and appraisal or dissenter's rights. Read More

Global Tax Services

Global Tax Services offers a variety of services for both domestic and international clients that ultimately make an issue more attractive to investors. TaxRelief, available to non-US issuers enables investors to obtain the most favorable withholding tax rate available on foreign dividend and interest payments. Known as tax relief at source, financial institutions need not file tax reclaims with foreign tax authorities on behalf of investors to recover overwithheld taxes on such payments because the proper amount is automatically withheld. Given its position in the marketplace, DTC is the only entity to offer tax relief at source. Read More

Legal Notice System

When issuers, their agents or the courts must notify shareowners of information concerning a security, DTC is generally a recipient of such notification because it is a registered holder. DTC in turn makes the notices available via LENS to Participants who may then distribute them to beneficial owners.

The Legal Notice Service (LENS) is a comprehensive library of notices electronically accessible by Participants. Notice categories include Notice to Security Holders, Defaults, Bankruptcies, Class Actions and Tax information. Read More