Underwriting

IPO Tracking

How do I end an IPO tracking of a CUSIP earlier than I selected when I submitted the issue to DTC for eligibility, as the lead underwriter?

Currently an issue can be IPO tracked for 30, 60 or up to 90 days.  A lead underwriter may choose to end IPO tracking before the penalty bid end date, or extend the end date originally requested and established for the CUSIP.  

To request the modification, the lead underwriter must contact the specialist who was assigned to the issue when it was submitted to DTCC in UW SOURCE to advise them of the need to have the IPO tracking end date changed.  The underwriter is then required to email the specialist with the revised date (end tracking, or extend) no later than 4:00pm on the day tracking is to end or be extended.  The request will be affected for opening of business on the following business day.

How do I release shares from an IPO tracked security (CUSIP) from my IPO account position to my Non-IPO position?

In the PTS function IPOU, option 3 on the main menu allows broker–dealers and prime brokers to release shares from their IPO control account into their “free” accounts. Brokers can release shares on a syndicate member level or on a customer level to their free accounts.  Clearing firms can release their correspondent retail customer IPO shares on a syndicate member level or on a customer level as well.

For more information, on how to use the IPO tracking system (IPOU function on PTS), please contact DTC’s Settlement Department at 212-855-5800 during business hours of 7am-7pm (EST), and at 888-382-2721, option 1, then Option 6 during non-business hours.

I am trying to release shares from an IPO tracked security (CUSIP) and I received the error message “CUSTOMER HAS INSUFFICIENT QUANTITY OF IPO SHARES AVAILABLE” , what can I do?

The customer/syndicate member must have position in their IPO account for a release to be processed. If the customer/ syndicate member has position in the IPO account when the request is submitted an immediate released is processed.  If customer/ syndicate member does not have position the release will pend (“hold”) for up to 3 days after the Trade Date.

If the customer/ syndicate member has position in the IPO account but not enough to cover the entire requested release DTC will release shares from the customer/ syndicate member account and pend the balance of the release request (“partial hold”).  Participants that do not populate the IPO system with customer- level detail can use an omnibus or dummy account number.  This allows for partial release of their position as shares are sold.

For more information, on how to use the IPO tracking system (IPOU function on PTS), please contact DTC’s Settlement Department at 212-855-5800 during business hours of 7am-7pm (EST), and at 888-382-2721, option 1, then Option 6 during non-business hours.

How do I update the IPO database (IPOU) with customer- level details for retail clients in an IPO tracked security (CUSIP)?

For information, on how to use the IPO tracking system (IPOU function on PTS), please contact DTC’s Settlement Department at 212-855-5800 during business hours of 7am-7pm (EST), and at 888-382-2721, option 1, then Option 6 during non-business hours.

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