DTC & CDS Eligibility & Processing Services
Who is the DTCC?
DTCC, through its subsidiaries, provides services across multiple asset classes, including clearing, settlement, asset servicing, global data management and information services. FAST is the DTCC system for processing DWAC transfers.
Fast is the DTCC system for the immobilization of securities certificates, through which transfer agents of issuers also act as agents of DTCC under an agreement with DTCC, for holding securities on behalf of DTCC, registered in the name of Cede & Co. as nominee DTCC and FAST agents electronically reconcile securities holdings daily.
DWAC is one of the two ways of transferring between broker/dealers and the DTCC, the other being the DRS method. Both enable investors to hold securities in registered form on the books of the transfer agent, rather than in physical form.
DRS is a system that allows securities to be held in “book-entry” form without having a physical certificate issued as evidence of ownership. The shares are instead, registered electronically in our record keeping system.
Holders of securities in DRS (book-entry form) have all the traditional rights and privileges as holders of securities in certificate form.
- DTCC- Depository Trust and Clearing Corporation
- FAST-Fast Automated Securities Transfer
- DWAC- Deposit/Withdrawal at Custodian
- DRS- Direct Registration System
In order to expedite your application, we recommend that you:
• Be fully reporting without missing or being late on any reports.
• Have limited corporate actions and officer changes within the last 3-5 years.
• The company and/or officers are not involved in lawsuits. If there is a lawsuit a detailed explanation regarding same may be needed.
• Avoid Reg 504D issuances or other unregistered resales.
• Update OTC Markets so that there are no “Halt” or “Yield” statuses.
• If rejected, the company may reapply in 2 to 3 months.
Working with CDS
Canadian Depository for Securities (CDS)
Owned by TMX, who also owns the TSX and TSX-V, CDS is Canada’s national securities depository, managing the safekeeping of depository-eligible domestic and international securities in both electronic and physical certificate form.
- CDS has custodial relationships with CAVALI (Peru), DTCC (USA), Euroclear France and Skandinaviska Enskilda Banken AB (Sweden) allowing dually listed companies easier access to move eligible securities listed abroad.
- By retaining a transfer agent, securities can be held as a ‘non-certificated inventory’ issue. Certificates are available to registered holders but with arrangements with CDS, the transfer agent does not issue the certificates registered in CDS’s name and instead holds the records for the issue electronically.
- As the national numbering agent for Canada, CDS assists issuers, agents or underwriters with purchasing an ISIN (International Security Identification Number) or CUSIP number.
- With an in-depth knowledge of and close working relationship with the CDS in Canada and the DTCC in the United States, Pacific Services Group is capable of handling any questions or issues related to the CDS. In addition, as a FAST participant, we are able to handle all of your book-entry transactions with the CDS.
- CDS offers book-entry-only (BEO) service options.
Direct Registration System (DRS)
offers simplicity and efficiency to both
your shareholders and your organization.
DRS is a system that allows securities to be held in “book- entry” form without having a physical certificate issued as evidence of ownership. These shares are, instead, registered electronically in our record keeping system.
Holders of securities in DRS (book-entry form) have all the traditional rights and privileges as holders of securities in certificate form. Shareholders benefit because it:
- Eliminates the need for shareholders to safeguard and store certificates.
- Allows shareholders to avoid the significant cost of a surety bond for the replacement of and effort involved in replacing physical certificate(s) that might be lost, stolen or destroyed.
- Permits electronic security transactions between your broker or dealer and Pacific Services Group as transfer agent.