New Issue Eligibility

The New Issue Eligibility service enables newly issued securities and secondary offerings to become depository eligible and to access the suite of book-entry services offered by The Depository Trust Company (DTC).

• Eligible Securities

  An "eligible security" refers to one that is freely tradable, fungible, and adheres to DTC's standards for electronic book-entry trading and management, as detailed in DTC’s Operational Arrangements. Depository services include full lifecycle security processing functions such as managing deposits and withdrawals, as well as overseeing corporate actions events such as dividend and interest payments, tender and rights offers, and reorganizations.

• Rapid Issuance

  The Rapid Issuance Service (RI) provides an expedited, efficient solution for issuing equity-linked structured notes through DTC. By enabling eligibility sponsors to pre-qualify a block of CUSIPs for DTC eligibility ahead of issuance, the service eliminates the need for individual eligibility evaluations with each new offering. Once pre-qualified, CUSIPs can be promptly drawn down and issued, streamlining the entire process. Additionally, RI offers robust API integration to further accelerate issuance workflows and enhance operational efficiency for market participants.

  For details about using the Rapid Issuance service, please visit Underwriting Central (UWC).

  

  Rapid Issuance Key Benefits

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  Rapid Issuance vs MMI Eligibility

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• About

  The New Issue Eligibility program allows underwriters and other DTC Participants to submit eligibility requests for new and secondary security offerings. Once DTC makes an eligibility determination and accepts the securities for depository and book-entry services, the securities can be distributed quickly and efficiently. These securities are then available for the full range of DTC depositor and book-entry services.

• Who Can Use the Service

  DTC participants, including lead managers, underwriters, and placement agents, may use the service. Firms with a clearing relationship to a DTC participant can also access it as a correspondent, however, the Participant through which the securities are introduced to DTC remains responsible for all activities within its account.

• Benefits

  The eligibility process enhances capital market efficiencies and reduces costs to the industry by enabling eligible 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

  To request eligibility for a new or secondary equity, corporate or municipal debt, or retail certificate of deposit issue, the user must submit the securities offering data and offering documentation via a web user interface in the DTC portal. The DTC Underwriting team will review the submission to determine eligibility and confirm compliance with DTC’s Operational Arrangements.

  If your firm submits Retail CDs or structured notes for eligibility, you may require access to the newer UWC client interface. Contact us for more information about UWC.

  After the data submission process is complete, the user interface allows users to track an issues status throughout the underwriting process, including approval, processing, packaging, and closing. Registration for access to the eligibility user interface is limited to DTC participants and correspondents only.

• For More Information

  To request additional information, please visit the Client Center.