When an issuer announces a distribution, The Depository Trust Company (DTC) receives the payment or other entitlement from the issuer or its paying agent and passes it to Participants on the scheduled payable date. DTC allocates only entitlements that are received by the 3:00 p.m. ET industry cut-off and include payment details matched to the correct CUSIP.

To help ensure allocations are made on time, DTC updated its P&I Performance Metrics report using sigma levels to track cash-processing accuracy and timeliness based on the defects defined below.
Accuracy Defect – Measures how many expected P&I allocations are completed on the payable date. An allocation is accurate when DTC receives the payment on time, matches it to the correct CUSIP-level details and credits Participants. An allocation that is not completed on the payable date is counted as a defect.
Timeliness Defect (External) – Measures whether issuers and paying agents send funds to DTC on time. DTC tracks two deadlines: the 3:00 p.m. ET industry cut-off and close of business on the payable date. A payment that misses either deadline is counted as a defect for that measure, and each deadline has its own sigma level.