For an underwritten offering, a DTC participant submits a request to make a security eligible for DTC services. Participants may also request eligibility for “older issues” which are already traded in the marketplace. DTC participants include banks, broker/dealers and other firms that act as underwriters of new issues, as well as other types of financial service institutions. An issuer seeking for an issue to become DTC eligible should work through a DTC participant that is willing to sponsor the eligibility process for the security. A participant may submit an eligibility request through DTC’s Underwriting Service at the time a security is initially offered and distributed to the marketplace, or at a later time for older issues that are not already DTC eligible. DTC’s Underwriting area may be consulted for specific eligibility requirements.
How does an issue become eligible at DTC?
- Category: Issuer Services FAQs