Settlement Progress Payment (SPP) & Push Profiles
If you approach or reach your net debit cap or have insufficient collateral, you can continue to receive deliveries (and avoid having transactions recycle) by wiring Fed fund payments to your DTC account. This procedure is called Settlement Progress Payments (SPP).
Note- SPPs must be received by 3:10 p.m. eastern time in order to prevent valued transactions from dropping at the 3:10 p.m. valued recycle cutoff.
Your SPP instructions should conform to the Fedwire formatting standards for Fed fund transfers. Include the following information:
For this Fedwire field:
|Receiving Bank ABA Number||DTC's ABA Number: 026002066.|
|Receiving Bank Name||DTC's telegraphic name: DTC SDFS.|
|Originator (ORG)||Your participant name (or the participant name on the account you want to credit).|
|Originator to Beneficiary (OBI)
|The purpose of the wire, followed by a slash and your DTC participant number. For example: SPP/2199 or DSP/2199.|
Before using the SPP Return/P&I Withdrawal Request function, you must activate your account for this option and supply DTC with specific wire instructions for your DTC Settling Bank as outlined in Important Notice # 4582-09. This information will be stored in DTC’s wire instruction database and may be accessed when you submit SPP returns or P&I withdrawal requests. Each instruction must include:
- Your participant number
- The American Banking Association (ABA) routing number of the receiving bank which must be your Settling Bank
- Your Settling Bank’s Telegraphic ID
- Your account number at the receiving bank
- Beneficiary Name
- Beneficiary Account Number
- Beneficiary Address including the Street, City, State, Zip and Country.
Note- You can add information to the wire instructions, such as a department name, if desired.
DTC will maintain up to five wire instruction formats in its wire instructions database. Complete the Wire Instructions form for Settlement Progress Payment Returns and Principal and Income (P&I) Payment Withdrawals attached to Important Notice # 4582-09 and send it to:
Using the SPP Returns/P&I Withdrawal Request, you can request that DTC return all or a portion of an SPP you submitted earlier in the day down to a zero balance. You can request that these payments be wired to your DTC Settlement Bank intraday, before the settlement period. Contact your Relationship Manager to obtain access to this update capability. DTC must receive your request no later than 3:20 p.m. eastern time. When DTC receives your reversal request, it:
- Debits the amount from your settlement account providing you have sufficient collateral and a credit balance.
- Returns the funds via Fedwire to your Settling Bank as indicated on your standing wire instructions with DTC.
Note- DTC will not return the funds if doing so would put your account into a debit balance.
Principal & Income (P&I) withdrawals allow you to withdraw intraday principal and income payments for non-Money Market Instrument issues that DTC has received from paying agents and allocated to your settlement accounts down to a zero balance. You may not make a P&I withdrawal if it will put you into a debit balance. These payments include dividends, interest and other periodic payments, as well as reorganization and redemption payments. You can request that these payments be wired to your DTC Settlement Bank intraday, before the settlement period.