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[QUOTE]Originally posted by T e x: [QB] DTC "custody": https://login.dtcc.com/dtcorg/prod-serv/page18908.html [QUOTE]DTC’s Custody Service allows Participants to outsource all, or part, of their physical securities processing. Used in conjunction with DTC’s Branch Deposit Service and New York Window (NYW) Service, Participants can retain control of their securities without having to handle and secure them. The service enables Participants to deposit securities not traditionally eligible for DTC, including securities such as customer-registered custodial assets, restricted shares, and certain non-DTC-eligible securities, like certificated money market instruments, private placements, and limited partnerships. Features Custody supports Safekeeping, Deposit & Withdrawal, Transfer, Restricted Transfer, Reorganization and Clearance & Settlement services. Security – DTC’s vault and certificate-handling practices ensure tight security and accurate processing. "Online" Vault File – Detailed information on every certificate and document is available, including certificate number, registration, negotiability status, restricted indicator, etc. Contingency – As part of DTC, Custody offers the benefit of total system reliability including DTC’s dedicated back-up site, which is available in the event DTC’s main offices are inaccessible. Imaging – Images of all certificates and documents held in Custody are available through an imaging workstation. Interfaces – Participants can choose to interface with DTC’s Custody Service via CCF (batch files), MDH (real-time transaction processing), or PTS. (Not all components of the service are currently available via each method. By year-end 2000, all will.) The various components of DTC’s Custody Service are explained, below, in more detail. These services can be used in any combination to customize the service to best fit your business needs. Deposit-Related Features Deposits – Deposits can be made via the Branch Deposit System (BDS) or as individual Custody Deposits using the PTS system’s CUST function. DTC performs a full examination of deposits, including reviewing the securities for negotiability, as well as ensuring the accuracy of the data transmitted by the Participant in its deposit expectancy file. DTC performs 100% SIC verification and makes calls to the transfer agent on all SIC hits, identifies and creates reorg deposits when applicable, and makes any ineligible issues eligible for custody services on a same-day basis. (PTS, CCF, or MDH) Legal Deposits – Legal deposits are fully examined, and missing legal requirements are identified and reported to the Participant. The securities are held until made negotiable by a subsequent Trailing Document deposit, or returned to the customer. (PTS, CCF, or MDH) Trailing Document Deposit – Document deposits can be made into custody, as long as the document deposit identifies a previous deposit of securities. DTC attaches the document deposit to the securities and the item is re-examined for negotiability. (PTS, CCF, MDH) Legal Deposit Customer Returns – Any item that needs to be returned to the customer or branch because necessary documents were not supplied can be returned with an explanatory letter on the Participant’s letterhead. (PTS, CCF, MDH) Foreign Securities – DTC will hold foreign securities, but does not provide transfer services. We can, however, attach instructions on your letterhead and forward them to a global custodian, for deposit into your account. (CCF, MDH) Mutual Funds – DTC can attach a customized letter instructing the fund to credit your firm’s house account. Additionally, we can instruct the fund to perform partial and full redemptions. Payment is made directly to the Participant according to standing bank account instructions. (CCF, MDH) Government Securities – If government securities are received on a Custody Deposit or via the NYW, DTC can present them to the Treasury Department or the FRBNY for deposit, or in the case of GNMA’s, we can credit your MBS account. (CCF, MDH) Withdrawal Services Withdrawals – If securities are required from the custody vault, DTC can make them ready for pick up within 45 minutes of the time the instruction is submitted. Securities can also be mailed directly from the Custody Vault or moved to the Participant’s general free account, as a deposit. Securities can also be mailed directly to your customer accompanied by a letter on your firm’s letterhead. (PTS, CCF, MDH) Transfer Services Transfers – For all domestic issues, DTC sends securities to the transfer agent the day after receiving your transfer instructions. DTC performs aging transfer follow-up with the agent after twenty days and every five days thereafter. (PTS, CCF, MDH) Rush Transfers – DTC processes rush transfer instructions to the agent via express mail on the day of their receipt. An express-mail return envelope is included with the shipment to the agent. DTC performs proof-of-delivery checks the next day. Aging follow-up is on an accelerated five-day cycle. (CCF, MDH, fax or phone) Restricted Transfers – Custody Participants can service their restricted positions by using DTC’s Restricted Deposit Service (RDS). The RDS service allows Participants to transfer restricted securities that have been sold, either fully or in part. It also supports other types of restricted transactions such as gifting, legend removals, and inventory breakdowns. RDS transfers can be processed as regular or rush items. RDS also provides FAST transfer agents with the ability to credit DTC’s balance for sold positions which expedites Participants receiving credit in their general free account. (PTS only, MDH and CCF scheduled for 2Q 2000) Reorganization Services Reorganization Presentation – You can instruct DTC to present any position held in custody for any type of reorganization activity, including redemption, mandatory and voluntary activities. Allocations are made upon receipt through DTC’s existing reorg systems. (PTS, MDH and CCF) Reorg "Sweeps" – For mandatory activities, DTC automatically presents positions in certain custody locations to the agent for payment or exchange. Reorg Research – Occasionally, Participants deposit older securities into Custody that may have been the subject of one or more prior reorganization activities. DTC researches such deposits and determines where to present them and what proceeds are due. If the research reveals that proceeds have been escheated, we will pass specific information back to the Participant for follow-up action. Short-term Redemptions – Certain money market instruments require presentation to the paying agent on payment date and may have payments made too late in the afternoon, to make DTC’s settlement cutoff. DTC captures payment information on these securities when received. On payment date, we deliver the securities to the paying agent with instructions to wire funds to your firm. Physical Settlement and Clearance Services Receive and Deliver Activity – The Custody Service is completely integrated with the NYW. This enables Participants to make deliveries directly out of the custody vault. The NYW uses the Envelope Settlement Service (ESS) or makes deliveries via messenger (i.e., over the window). Receives are examined for negotiability and reclaimed if need be. Receives can be booked directly into custody, returned to your firm, or turned for same-day delivery. (PTS, CCF, MDH) Settlement Balancing – The NYW reconciles all Receive and Deliver activity to NSCC to ensure proper booking on both sides. Direct Clearing – The NYW can accommodate physical receive and deliver activity for Participants that do not use DTC for Custody — in effect, we act as a New York office for these firms. Position Maintenance Service Location Moves – Participant’s inventory is segregated in various locations, sometimes referred to as "boxes". Certificates can be moved from one box location to another to reflect changes in the status of the securities. Account Number Changes – Each certificate received into custody is identified by your corresponding customer account number. Participants are able to update the customer’s account number on certificates, globally or individually. (PTS, MDH, CCF) Audits – On occasion, the Participant’s auditors or a custodial customer may require access to your inventory. Given 24-hour notice, DTC will provide a secure room under camera surveillance where securities can be examined. Bearer Bonds – Coupons can be clipped and presented for payment. Allocations occur as coupon deposits via DTC’s existing coupon service. Balancing – To make reconciliation simpler, end-of-day positions and activity reports are available on the same files as all other DTC positions and activities (APIBAL and DTFPART). DTC is offering a Custody Service that is secure, responsive, and efficient. We now offer a transaction-based fee schedule. You pay only for the services you use. By outsourcing your securities processing to DTC, you can eliminate the high fixed costs involved in supporting an in-house operation and replace them with a competitively-priced, variable cost structure. We pride ourselves on excellent customer service. DTC’s Custody staff has many years experience in securities processing for DTC’s member firms. We recognize that the service level we deliver can have a significant impact on your customer, and we strive to anticipate your needs and exceed your expectations. We look forward to working with you. For more information Please contact Relationship Management at (888) 382-2721 (United States & Canada) or +01 212-855-8099 (International). Quick Links About DTC Customer Portal DTC Holiday Schedules DTCC Learning Forms for Making Securities DTC Eligible Important Notices SEC Rule Filings Industry Links Participant Listing* Rules, Reporting & Fees* SMART Important Legal Information Employee Check-In HomeSettlement ServicesAsset ServicesGlobal Tax ServicesMembers Section[/QUOTE] [/QB][/QUOTE]
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