Underwritings

The servicing of assets in DTC begins with the Underwriting process where new securities coming to market are made DTC-eligible and distributed to purchasers on the "closing date" by means of book-entry delivery.

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The Underwritings sigma levels are predicated on defects as defined below.

• Accuracy Defect (Internal & External): Measures the percentage of corrections that must be made to DTC's masterfile of eligible securities. Such defects can have an adverse impact on downstream events such as cash distributions. Defects caused by DTC are measured as internal accuracy defects (e.g. transposition errors on the masterfile); defects caused by Participants/Underwriters or other service providers are measured as external accuracy defect (e.g. incorrect rate).
• Timeliness Defect (External): Measures the timeliness of Underwriters submitting the required documentation for DTC-eligibility by the closing date minus 3 days by asset class (Municipal Bonds, Corporate Debt, Equity, CD’s and CMO/ABS). Documentation received closing date minus 2 days or less is measured as an external defect.

 Sigma Trend Charts (pdf)

 Underwriter Trend Chart for External Sigma (pdf)