Category: General Questions

There are 4 levels of eligibility with DTC: Level 1 – CUSTODY Only Only physical certificates can be deposited with DTC. While clearing through DTC, the securities will be registered in the broker’s name. Level 2 – DTC Eligible Only physical certificates can be deposited with DTC who serves as the custodian and holds the securities through its nominee name, “CEDE & Co.” Level 3 – FAST Eligible Issues that are FAST Eligible have the ability to deposit and withdraw securities electronically to a brokerage account through the FAST (Fast Automated Securities Transfer)/DWAC (Deposit Withdrawal at Custodian) system. Level 4 – DRS Eligible DRS eligibility enables investors to elect to hold their assets in the book-entry form directly with the issuer. This level of eligibility is part of the listing requirements for senior exchanges.

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