We work directly with DTC participants whom provide our firm full access regarding any and all DTC related services.
The key to timely and efficient DTC eligibility approval is to submit a “perfect package” of required documents. Our proven track record of experience and attention to detail ensures our clients enjoy a positive experience.
We assist both private and public U.S. issuers, foreign issuers, shell companies and Regulation A offerings.
Why Become Eligible
The Depository Trust Company (“DTC”) facilitates electronic trading of securities in the U.S. This eliminates the need for buyers and sellers placing trades in DTC eligible securities to produce physical certificates to settle the trades. DTC’s automated clearing and settlement efficiencies provide the following benefits to issuers and their shareholders:
- A pre-requisite to attract investors and establish an active market
- Major cost savings
- Trades take place electronically through buying and selling brokers accounts
- Shares trade much faster and are more likely to increase trading volume
- Most Broker Dealers prohibit trading of non DTC eligible securities
Requirements
The requirements for full service DTC eligibility are either (a) the securities have been registered with the SEC pursuant to the Securities Act of 1933, as amended; (b) are exempt from registration pursuant to a Securities Act exemption that does not involve transfer or ownership restrictions; or (c) are eligible for resale pursuant to Rule 144A or Regulation S (and otherwise meet DTC’s eligibility criteria).
New Issue Eligibility
Both corporate and municipal new issue securities can be made eligible for deposit at DTC in Book-Entry-Only (“BEO”).
Examples include newly issued securities, secondary offerings, corporate or municipal debt, and retail certificate of deposit issues.
Secondary Market (“Older Issue”) Eligibility
This program is for issuers who have already-issued, outstanding securities that were not previously made eligible for DTC depository and book-entry services.
Examples include Form 10, S-1 registrations, Private Placement Memorandum’s (“PPM”) and Regulation A offerings.