Deposits: Participants deposit securities using DTC’s PBS function CUST, via a CCF deposit file transmission, or via MDH. Once the certificates arrive at DTC, Securities Processing staff thoroughly examines them all, performs a negotiability check and verifies data received from the depositing participant firm.
Depositing participants have the option to request an SIC (Securities Information Center) verification, by which DTC provides a file to SIC using the participant's FINS number and access code. On receipt of the return file, DTC can verify “potential hits” with the transfer agent.
Each deposit received at DTC is imaged as a unit of work, which can contain multiple certificates and documents. During the lifespan of a certificate or document, the participant may retrieve the image via PBS or an electronic “drop-box” to be picked up by the participant's processing system or service bureau.
Withdrawals: To withdraw certificates, participants in the New York City area can arrange for pick-up from DTC; for those outside of New York City, DTC ships certificates via overnight air courier.
For domestic issues, DTC generally sends securities to the transfer agent on the same day after receiving the participant's instructions. Aging transfer follow-up is also performed.
Custody Reorganization Service: This service supports securities on deposit in the Custody Service that are subject to reorganization events, including redemptions, mandatory and voluntary activities.
New York Window (NYW): NYW provides clearance and settlement service for physical securities and related paperwork. The service allows firms to clear and settle trades outside DTC’s regular book-entry settlement services. Trades that can clear through the NYW include securities that are not DTC-eligible, restricted securities and mutual fund re-registration letters.
Restricted Deposit Service (RDS): RDS allows participants to deposit and effect a transfer (including working with the transfer agent for the removal of restrictive legends) on previously restricted securities. The RDS unit processes full sales, partial sales, gifts, legend removals and breakdowns.
CUST function on PBS: This function provides update capabilities for the various services offered through the Custody Service, as well as:
- Certificate detail for deposited securities, including denomination, quantity, certificate number (including prefix), registration, negotiability indicator, transfer agent information.
- An inquiry screen with complete historical details of Custody activities.
- The ability to retrieve certificate and document images.
- Updates to customer account numbers singly and globally.