DTCC’s dematerialization plan focuses on three primary areas in physical processing: traditional physical transactions, new issues and existing inventory in the vaults of The Depository Trust Company (DTC). To target these areas, DTC will:
- Introduce ways to reduce volumes, costs and risk associated with traditional physical transactions. These are transactions clients regularly send to DTC for immobilization. DTC anticipates eliminating physical deposit activity altogether by 2015.
- Develop recommendations that will eventually eliminate the need for physical certificate processing of new issues.
- Work with the industry to reduce physical certificates held in the DTC vault, as well as reducing and ultimately eliminating those certificates held in DTC’s street name, Cede and Co. This will not affect the depository’s Non-Cede Custody Service, which offers limited services for assets that are not fully eligible.