This website sets cookies on your device. By continuing to use our site, you consent to our use of cookies in accordance with our Privacy Policy.
Menu Learning Center
0.00 ( 0 votes )

DTC's Activation/Account Coding product describes the various account options available to your participant account.

 

Requirements

To use DTC services, you must:

  • Become a DTC participant
  • Make your mandatory deposit to DTC's Participants Fund
  • Engage the services of a settling bank to settle daily on your behalf, and submit a formal settling bank agreement to DTC.

 

Account Options

When you open your account, and any time after, you can:

  1. Instruct DTC to group multiple accounts into different collateral families and allocate specific percentages of your start-of-day collateral and net debit cap to each family. If we do not receive this instruction, all your accounts will be grouped into one collateral family. See Grouping Accounts Into Collateral Families for more information.
  2. Instruct DTC to classify all of your start-of-day positions as collateral. At the opening of business each day, all security positions in the minimum amount (MA) account that are not memo-segregated will be moved into your net additions (NA) account, giving you collateral value credit for those securities. Absent your instructions, DTC will code the MA account for start-of-day positions.
  3. Instruct DTC to classify all unvalued additions as non-collateral (such as deposits, free deliver orders (DOs), release of segregated securities). Absent your instructions, DTC will code the NA account.

    Warning! You are advised to consider the implications of classifying your securities as collateral. Collateral can be used to support your net debit and therefore can be liquidated by DTC in the event you are unable to pay your settlement obligation.
  4. Elect to have the ability to make late, valued transactions to your settling bank's participant account, with the consent of the settling bank.
  5. Elect to have the ability to withdraw SPP Return /P&I Withdrawal allocations intraday. See Principal and Income Withdrawals and Settlement Progress Payments for more information.
  6. Elect to have the ability to chill (block) your account from transactions involving securities eligible for Federal book-entry.
  7. Choose between two recycle options. See Recycle Processing for more information.
  8. Choose from various memo-segregation options. See Memo Segregation.
  9. Elect to have Initial Public Offering (IPO) positions released automatically upon the input of a DO, if you act as a prime broker. See the IPO Broker Manual or call your Relationship Manager for more information.
  10. Elect to have all valued pledges subjected to Receiver Authorized Delivery (RAD) approval before they are processed by DTC, if you act as a pledgee. See Receiver Authorized Delivery (RAD) for more information.
  11. Elect to have all free DOs entered after 5:00 p.m. eastern time subjected to RAD approval before they are processed by DTC.

Recommended for You