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Leveraging DTCC’s Security Position Reports to Reach Shareholders

By DTCC Connection Staff | 2 minute read | October 19, 2022

The steady increase in requests for DTC’s Security Position Reports (SPRs) has put a spotlight on the crucial communications role these reports play for issuers identifying investors affected by corporate actions. SPRs are special web-based reports that enable issuers, trustees and authorized third-party agents to see the position holdings of The Depository Trust Company (DTC) Participants in the issuer’s security as of a specified date. Equally important is the need for SPRs due to the increase in special meetings and rescheduling of annual meetings because of the COVID-19 pandemic. 

Related: DTCC's 2022 Asset Services Forum

Within the past year, SPR requests have risen by 11% and access requests to use the service have also increased by 36%. To learn more about this service, DTCC Connection talked to Joyce Rosen, DTCC Product Manager, Asset Services.

DC: Why are SPRs important to issuers?

JR: The securities held at DTC are registered in DTC’s nominee name -- Cede & Co., so from DTC’s books alone, the issuer isn’t able to determine who the beneficial owners are. SPR enables issuers to see position holdings of DTC Participants as of a specified date. With that, issuers can then identify their security holders as recorded on the books and records of the DTC Participants. SPR is an essential link between issuers and their investors and the only means available for issuers to ultimately identify and communicate with them. 

The SPR service also provides gateway access to receive an omnibus proxy, which enables issuers to coordinate with their tabulation agents the distribution of proxy materials to beneficial owners who can subsequently vote on matters concerning their investment such as electing company board members or voting on various company reorganization events, among other business.

DC: How does the SPR service work?

JR: At issuance, DTC works with the underwriter to make the security DTC-eligible, enabling the underwriter to distribute the securities quickly, safely and economically via electronic book-entry delivery and settlement. The securities are then available for the full range of depository services.

SPRs are one of the add-on services available for clients; they only have to register for access and select the subscription service best fitting their needs. Reports are delivered conveniently through a web browser, spreadsheet, or file. SPR is offered in conjunction with DTC’s Proxy Service.

Related: An Issuer’s Journey Through DTCC

DC: What are the tangible benefits for DTC clients?

JR: When an issuer makes its security DTC-eligible, it stands to benefit from the efficiencies available in the capital markets through cost reduction, thus enabling their issue to be distributed, settled and serviced through DTC’s automated processes. The SPR service is one of many services that DTC provides in the course of servicing the securities in our custody and a vital communications link between issuers and their investors.

To register for DTCC’s Security Position Reports or for more information about the service please click here.

Joyce Rosen, DTCC Product Manager, Asset Services
Joyce Rosen

DTCC Product Manager, Asset Services