Underwriting

CUSTODY

What does it mean when a security (CUSIP) is in Custody-only status?

Typically, securities that are custody-only are subject to restrictions and not eligible for DTC nominee registration or for DTC book-entry services. The Custody Service allows a participant to deposit securities not eligible for DTC book-entry services, including securities such as customer-registered custodial assets, restricted shares, and other DTC-ineligible securities such as certificated money market instruments (MMIs), private placements, and limited partnership interests. For more information, please see the Custody Service on DTCC’s website at http://www.dtcc.com/asset-services/securities-processing/custody-service.aspx.

How can a security (CUSIP) in custody-only status become “full- service” DTC eligible?

For a security to become and remain full service DTC eligible the security must be submitted to DTC as part of an eligibility request by a direct DTC participant and meet the DTC eligibility requirements as described in DTC’s Operational Arrangement (OA). For more information, including with respect to documentation and other requirements for the submission of an eligibility request, please DTC’s OA at http://dtcc.com/~/media/Files/Downloads/Settlement-Asset-Services/Underwriting/operational-arrangements.ashx.

Also please see Secondary Market Eligibility on DTCC’s website at: http://www.dtcc.com/settlement-and-asset-services/underwriting/secondary-market-eligibility

See also “Eligibility” below.

 

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