DTC's Proxy Services provide an essential link between DTC participants and issuers of eligible securities by supporting communication from issuers on matters such as shareholder meetings and consents, bankruptcies and dissenters/appraisal rights.
Proxy Services provide issuers of DTC-eligible securities the information they need to contact DTC participants regarding corporate-related events. DTC participants are responsible for distribution of information to their customers, including any ultimate beneficial owners of interests in the securities.
DTC, the holder of record for depository-eligible securities, transfers the right to vote with respect to those securities to the DTC participants that hold record date positions via an Omnibus Proxy. On the day after record date DTC provides the Omnibus Proxy to the issuer along with a Security Position Report. The Security Position Report includes each participant’s closing balance in the security along with their name, address, telephone number and proxy contact person so that the issuer may then communicate directly with those firms. At the same time the Omnibus Proxy is provided to the issuer, DTC notifies its participants holding positions in the security of their entitlement to vote.
Issuers and their authorized third-party agents can use DTC’s Security Position Report web service (SPR) throughout the year to obtain position information on their securities as needed. For more information, visit www.dtcc.com/spr
Who Can Use the Service
Issuers whose securities are eligible for deposit at DTC may use the service. Participants may also use the service as described below in the Participants section.
Proxy Services helps process timely and accurate communication about a security among interested parties in a cost efficient manner.
Electronic Omnibus Proxy: Issuers can utilize our SPR portal to retrieve Omnibus Proxy information electronically by registering at http://www.dtcc.com/settlement-and-asset-services/issuer-services/security-position-signup. DTC will create the Electronic Omnibus Proxy and make it available for online retrieval as of the morning after record date, eliminating the need to mail hard copies of the information. For more information regarding Electronic Omnibus Proxy please email us at firstname.lastname@example.org
Issuers of depository-eligible securities must notify DTC in a timely manner regarding relevant information on their securities, including meeting and record date announcements. For efficient processing, the issuer should provide its annual report and proxy statement to DTC via email. All communication provided to DTC should include the 9-digit CUSIP number for more efficient servicing.
To notify DTC of issuer meeting and record date information or to submit Omnibus Proxy contact and address information updates, email us at email@example.com
DTC also assists Participants in exercising other rights in connection with its role as the record holder of securities on deposit.
Examples of the rights that participants may exercise:
- Assertion of Appraisal or Dissenters' Rights
- Ratification of Assertion of appraisal of Dissenters' Rights
- Withdrawal of Assertion of appraisal of Dissenters' Rights
- Demand to Inspect a Stock Ledger
- Demand to Accelerate a Bond.
In order to exercise such rights through DTC, the participant must complete and submit to DTC a letter identifying the issue and the quantity of securities involved, along with the instruction letter instructing DTC to act.
Note- There are standardized forms of the Instruction Letter, Demands Letter and required questionnaire. For sample letters/templates related to these actions, see the Proxy Service Documentation.