Money Market Instrument Eligibility

The Money Market Instrument (MMI) service allows Issuing and Paying Agents (IPAs) to submit requests to make new Money Market Instrument (MMI) programs eligible at DTC.

• About

  MMIs are securities or financial instruments with short maturities, generally 270 days or less. Under the MMI Program, eleven types of MMIs, such as institutional CDs, corporate and municipal CP, medium-term notes (MTN), short-term bank notes (STBN), and medium-term bank notes (MTBN) are eligible for servicing through the Depository Trust Corporation (DTC).

• Who Can Use the Service

  DTC participants that have qualified as Issuing and Paying Agents are eligible to use the service; all Participants may purchase or present for maturity in the ordinary course of business.

• Benefits

  The MMI Program enhances capital market efficiencies and reduces costs to the industry by enabling MMI securities to be distributed, settled and serviced through DTC’s automated processes. DTC’s straight-through processing mitigates risk for the industry through automation and standardization.

• How the Service Works

  IPAs seeking DTC eligibility for a new MMI program must complete and submit to DTC via the Underwriting Central (UWC) web-based application the following:

  • Program-level details including the IPA’s DTC account number, issuer name, SEC registration or exemption information, issuer contact information, state/country of domicile and program features.
  • MMI Letter of Representations (LOR).
  • MMI Certificate Master Note /Global Certificate Agreement (executed by IPA upon initial onboarding).
  • Exhibit A attestation ( system-generated - amendment to MMI certificate agreement listing the issuer name and CUSIP base).

  DTC may also require additional documentation as deemed necessary.

  After the Underwriting department approves DTC eligibility on a new MMI program the IPA will be able to create an issuance instruction using the DTC Settlement MMI issuance service. The MMI issuance instruction adds the CUSIP and security-level details (e.g., interest rate, maturity date, payment frequency) to DTC’s masterfile. Additionally, it creates an MMI deposit in the IPA’s DTC account, a maturity obligation (MO), and a delivery (free or valued) of the deposited MMI from the IPA’s account to the specified account of one or more other DTC participants (e.g., the receiving participants) on settlement date.

• For More Information

  To request additional information, please visit the Client Center.