Dec 01, 2010
• DTCC Connection
Calendar Reminder: Feb. 7 Marks Change to P&I Processing
The Depository Trust Company (DTC) will begin processing principal and income (P&I) payments using a new methodology on February 7, 2011, and will allocate only those P&I payments that have been made on time and identified with the correct CUSIP.
The new methodology, first announced in November 2009, will mitigate risk in P&I payments on the more than 3.5 million securities that DTC services. The new process changes the longstanding industry practice of having DTC collect and allocate virtually all payments on their scheduled payable dates, including those payments made to DTC after established intraday cut-off times or received without the detail needed to allow a payment to be paired with its CUSIP number.
DTC customers can get the latest information on P&I payment processing by accessing DTCC's P&I Cash Processing website and viewing the new P&I webcast, which DTCC designed to help customers understand and prepare for the changes. The webcast outlines the new methodology and its impact on paying agents, issuers and participants, as well as the actions each group needs to take to be compliant with the changes. @