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by Edward C. Kelleher

"For many corporate issuers, DTCC is the unseen partner,” said Susan Cosgrove, DTCC managing director and general manager, Settlement and Asset Services. “They see our work and value our services but don’t necessarily know that we’re the people who process the underwriting of their stocks and bonds, have their securities registered electronically and help ensure that their dividend payments are accurate and made on time.”

“DTCC does that and a lot more for corporate issuers,” continued Cosgrove. “That’s why we’re reaching out to them. We want issuers to know how much more we can do to help them boost efficiencies, reduce costs and risk, and meet the challenges of today’s marketplace.”

Beginning in December 2011, DTCC kicked off an 18-month campaign to contact and educate issuers about the broad range of services the company offers for dealing with shareholder information, proxy services and dividend and reorganization services, as well as taxes and other information services offered by The Depository Trust Company (DTC), a DTCC subsidiary and the U.S.’s central depository.

IPO issuers

“We started with issuers who launched 2011 initial public offerings through our depository,” said Cosgrove. “We want them to better understand how we handle IPO processing and, in particular, to be sure they know their offering is now eligible for the full range of our depository services. It’s our way of telling them that we’re here whenever there’s a problem, and we’re here to help find better and more efficient ways to manage the administration and ownership of their stock.”

In a direct mail campaign, issuers will be getting a quick look at DTCC and its history, as well as a new brochure outlining the range of services available to the industry. Among the services offered are:

  • Security Position Reports. These reports give issuers valuable information they can’t obtain elsewhere, enabling them to contact their shareholders on corporate-related events such as annual meetings.
  • Proxy Solicitation Services. These services give issuers the ability to contact their shareholders on a variety of proxy-related events, including consent solicitation, legal notices and appraisal or dissenter’s rights.
  • Legal Notice System (LENS). LENS gives issuers a quick and easy way to disseminate legal notices and additional information affecting their securities.
  • Reorganization Service. This service alerts customers to important upcoming reorganization events, such as mergers, takeovers or bankruptcies that may affect them. DTCC acts as a centralized hub, collecting investors’ instructions and communicating them to the issuer.
  • Fast Automated Securities Transfer Program (FAST). FAST is an agreement between DTCC and issuers or their transfer agents that eliminates the movement of physical securities. This service reduces the cost and risks associated with moving and storing physical certificates.
  • Direct Registration System (DRS).DRS gives investors the option of holding their assets on the books of the issuer’s transfer agent, eliminating the expense of issuing paper certificates, as well as the risk of having those securities lost or stolen. This system also allows investors a quick, easy and efficient way to sell their securities.
  • Tax Services. DTCC has a range of tax services for both domestic and international investors, including its TaxReliefSM Service, which enables investors in foreign issues to obtain “at-source” tax relief. This means the correct amount of tax is withheld from a dividend or interest payment, eliminating the onerous and paper-intensive process of applying for a refund for overwithheld taxes.

Solutions provider

DTCC will be contacting other groups of issuers throughout the year, bringing them up-to-date on its services.

“We want issuers to know we’re working on new and better ways to serve them in the coming months and years with a reengineered corporate actions system, new services for recordkeeping and compliance issues, and new ways to reduce risk and lower costs,” said Cosgrove. “Ultimately, these services benefit both issuers and their investors.” @

[For more information about DTCC’s Issuer Services, contact or visit]