Most of your questions about using the Custody service can be answered with the spreadsheet Custody Conversion Checklist. (76 KB) This spreadsheet outlines the sequence of events that must take place, as well as the party or parties responsible for each step.
For additional information about the Custody service, see the related articles further down on this page. You should also review the videos available in the Custody Safekeeping section.
DTC’s Custody Service enables participants to outsource the safekeeping and processing of physical securities that are not traditionally eligible for the regular depository services.
You can outsource all or part of your physical securities inventory for safekeeping.
When Regular Custody Services are used in conjunction with DTC's Branch Deposit Service (BDS), Restricted Deposit Service (RDS), and New York Window (NYW) Service, Custody participants are able to retain control of their securities without having to handle and secure them.
The Custody Service allows you to deposit securities not traditionally eligible for DTC, including securities such as customer-registered custodial assets, restricted shares, and certain DTC-ineligible securities such as certificated money market instruments (MMIs), private placements, and limited partnerships.
DTC intends to make all appropriate securities eligible for its Custody Service. DTC reserves the right, in its sole discretion to refuse to accept a security or other asset for its Custody Service.
Financial items/documents that are not eligible for the Custody service include:
DTC’s Regular Custody Services free you from the cumbersome physical handling of those securities that are not traditionally eligible for DTC processing.
- Processing withdrawals from inventory, which can include mailing to your customers or branches
- Mailing of certificates as instructed
- Production of customized letters
- Systemic account number changes
- Coupon clipping and shell presentation
- Trailing document deposit
- Customer request for audits
To learn more be sure to view the videos in the Custody Safekeeping section, also accessible via the menu at left.
DTC’s Custody Service allows you to submit transfer instructions requesting re-registration into firm or customer name. It also allows for breakdown requests.
Restricted deposits and their transfer instructions are hand delivered or sent by FedEx Priority Overnight service to the transfer agent. For more information, see the Restricted Deposits (Restricted Transfers) article further down on this page.
The Custody Reorganization Service allows for presentations on corporate events not eligible for regular DTC services and/or DTC eligible corporate events in restricted shares.
- Assistance with research into reorganization and redemption activities
- Follow-up until all proceeds have been collected
- Allocation of both cash and stock proceeds
- Option of designated custody boxes for reorg sweeps
To learn more, see the Custody Reorg article further down on this page.
Branch Deposit Service (BDS)
The Branch Deposit Service (BDS) allows you to have your customer deposits sent directly to DTC from their branches and/or correspondents. The BDS service performs a full examination of these securities prior to crediting into your free account.
- Less workspace and vault space required
- Reduce deposit cycle time
- Mitigate risk
New York Window/Physical Settlement
The New York Window (NYW) allows customers to effect both over-the-window and NSCC & ESS transactions. Customers can effect deliveries using inventory from their custody vault.
To learn more be sure to visit the New York Window section, also accessible via the menu at left.
Restricted deposits and their transfer instructions are hand-delivered or sent by FedEx Priority Overnight service to the transfer agent. The following figure shows the general process flow of items through the Restricted Deposits service.
The following figure provides a more detailed view of the movement of items through the service.