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.
The MMI Program provides customers and issuing and paying agents with a fully automated book-entry environment for the issuance and settlement of money market securities.
The automated IPO Tracking system allows underwriters to track deliveries of equity securities by syndicate members to identify securities sold back during the underwriting stabilization period.
NIIDS assists underwriters in meeting the reporting standards set forth by the Municipal Securities Rule Making Board (MSRB). This new process also allows for more timely, accurate and efficient processing of new municipal issues and gives expanded access to underwriters enabling them to better manage their deals.
Lead managers, underwriters and placement agents who are DTC participants are eligible to use the service. (In addition, the service is available to those firms that are not direct participants but maintain a clearing relationship with a DTC participant.)
DTC's Underwriting Service offers solutions that create efficiencies in the capital markets and reduce risk to the industry by facilitating the distribution and settlement of new and secondary equity issues, and new corporate and municipal debt issues (including 144A issues in the U.S. market and its Regulation S counterparts, which are distributed abroad).
DTC offers a high level of straight-through processing by leveraging new technologies that replace manually intensive processes with electronic alternatives.
All programs use DTC's highly efficient electronic book-entry system and standardized operational arrangements to significantly reduce the cost and risk associated with physical processing.
For a new or secondary issue distribution and settlement at DTC, a participant requesting that an issue be made eligible must:
To streamline the new issue process, the following enhanced features are available:
Participants using the functionality on DTC's Participant Terminal System (PTS) can also:
Please contact Relationship Management at 866-724-4402.
Last updated December 22, 2009