P&I Cash Processing is a division of DTC's Asset Servicing responsible for the daily collection and allocation of cash entitlements due on DTC-eligible securities.

Overview

P&I Cash Processing is a division of DTC's Asset Servicing responsible for the daily collection and allocation of cash entitlements due on DTC-eligible securities. Commonly referred to as Principal and Income payments ("P&I"), these entitlements include dividend, interest, periodic principal, redemption and maturity payments arising from the servicing of the 3.5 million securities eligible at the depository. P&I Cash Processing deals with over 7,000 paying agents and issuers annually to ensure that allocation of these entitlements is made to DTC's customers on the scheduled payment date. In 2011, P&I Cash Processing allocated approximately 4.1 million entitlements totaling over $2.5 trillion.

Who Can Use the Service

DTCC Participants holding eligible securities and entitled to these P&I distributions will receive payments through P&I Cash Processing as part of their overall DTC Settlement each day.

Benefits

By centralizing the receipt and allocation of cash entitlements, P&I Cash Processing leverages the scale and experience of DTC to provide cost savings to issuers, agents, participants and ultimately the beneficial owners of securities. Our processing systems allow a single payment by an agent or issuer to be seamlessly translated into multiple allocations to participants, eliminating the need for separate payments to multiple firms across the financial industry. Just like other facets of the business, DTC overcomes the coordination and information problems of the securities industry via the economies of scale provided by the world's largest securities depository.

How the Service Works

As funds are paid to DTC to support cash entitlements, matched funding (i.e., funds received by 3:00pm and identified at a CUSIP level) is allocated to participants in batches running every 20 minutes from approximately 9am to 3pm. These allocation totals appear as Code 87 (Dividends) and Code 88 (Redemptions) activity balances on the DTC Participant Settlement Statement. Participants can receive updates on their intraday P&I allocations through several means including intraday cash settlement files and on-line inquiries, and if eligible, can also request intraday withdrawals of these funds through the P&I Withdrawal service. If not withdrawn intraday, these entitlements are settled through the combined DTCC Settlement process.

For More Information

Participant Contact

If you have general questions about the P&I Cash Processing service or would like information regarding intraday cash settlement files, please contact your Relationship Manager for further information. If you have an inquiry about a specific P&I allocation, please contact Customer Service or utilize the WINS inquiry system to submit the query.

Agent/Issuer Contact

If you have questions about payments to be sent to DTC, please first consult our Operational Arrangements and the best practices section of this website. For any further questions, call the Customer Support Hotline and ask to speak to a P&I team member or send us an email at PIrefinement@dtcc.com. Please contact Relationship Management at 800-422-0582.