DTC and FAST Eligibility
There are two levels of eligibility at DTC: Initial DTC Eligibility and Fast Eligibility.
1. INITIAL DTC ELIGIBILITY (PAPER ONLY)
DTCC will accept physical stock certificates for deposit only for DTC-eligible securities. This is part of the certificate clearing process when stock is initially deposited into a brokerage account. The process can take several weeks. Once the stock is deposited through DTC (Cede & Co), the shareholder will be able to sell shares through his/her broker.
ClearTrust actively assists public companies to become DTC eligible. Our comprehensive DTC eligibility service includes preparation of the necessary paperwork and direct contact with the presenting market maker to ensure a timely application to DTC. We handle the entire eligibility process for you, freeing up your time and resources to grow your business. As a newly public company, we want to help set you up for success in the marketplace.
For this reason, our DTC eligibility service is complimentary to ClearTrust clients.
2. FAST ELIGIBILITY (ELECTRONIC)
DTC’s Fast Automatic Securities Transfer program allows for the electronic transfer of shares through DWAC and DRS PROFILE systems. This allows for electronic deposits of book-entry shares between your shareholders and their brokerage accounts. DTC participants can request shares from the transfer agent directly, and stock can be deposited into a brokerage account in a matter of days or hours as opposed to weeks.
Providing FAST eligible services to your shareholders can be an important factor for prospective investors.
FAST Application Process: At your request, ClearTrust will apply for FAST eligibility on your behalf. DTC reviews each request carefully prior to approving or denying. Several factors weigh into their decision, including the reporting status of the company, officers and directors, trading patterns, regulatory history, and other risk indicators.
For more information on how ClearTrust can help you with DTC and FAST Eligibility, check out our video below: