DTC Physical Securities Processing Update

DTC Physical Securities Processing UpdateNo Physical Certificate Processing

Here is where we are at with DTC Physical Securities Processing. DTC has been changing its position on physical securities processing faster than we were able to post updates.  On April 8th, 2020 DTC announced that once again, it was suspending the physical securities processing.  DTC has stated that it will reassess the situation and update the status on Thursday April 30th, 2020.  This follows the announcement from DTC on April 3rd, announcing the resumption on physical securities processing on Monday April 6th.  This followed the announcement from DTC on March 28th, announcing the suspension of physical securities processing. This announcement from DTC followed their announcement on March 26th, announcing the resumption of physical securities processing.  All of this started on Friday March 20th, when DTC announced it was suspending physical certificate processing.

DTC Eligibility Deposit Requirements

DTC has also announced that it is suspending the deposit requirements for securities that have recently had their DTC Eligibility application approved.  This is a requirement that Issuers who have had their security’s DTC Eligibility application approved, complete a deposit of those securities within 30 days, or they loose their eligibility.  For obvious reasons, this 30 day time period will start upon the resumption of physical securities processing, which is not expected before early May, at the soonest.

The relevant text of the notice on the physical securities processing update is as follows:

Effective at the close of business on Wednesday, April 8, 2020, DTC is suspending all physical processing services until further notice due to ongoing concerns related to the COVID-19 virus. All other DTC services remain Business as Usual.

We will reassess the situation and update the status on Thursday April 30, 2020. DTC requests that Participants and transfer agents not send certificates via messenger, courier services or USPS to DTC until further notice. For packages/certificates that are currently in-flight with couriers or USPS, DTC will have a mechanism to accept them but will be unable to perform any transaction processing.

The suspension of physical processing includes:
• All physical Deposits
• Withdrawal & Certificates on Demand (COD)
• New York Window (NYW)
• Envelope Settlement Services (ESS)
• Custody Reorg
• SBA Pooling

Underwriting Closings: For transactions closing while the suspension of physical processing services is in effect, please follow the procedure set forth in the Important Notice B#13099-20 dated March 12, 2020.

All automated and fully electronic DTC processes with FAST transfer agents such as DRS Profile and DWAC will NOT be impacted.

DTC will continue to monitor the situation and provide Participants and agents with up-to-date information about the status of the physical securities processing services.


If you have any questions about the above blog post, please feel free to visit our web site, www.dtc.coralcapital.com and check out what we have to offer.  Feel free to contact us if you have any questions.  We can be reached at 404-816-9220 and are always willing to speak with you.

About Coral Capital Advisors

Coral Capital Advisors is an independent consulting and advisory firm focused on companies and participants in the lower and middle markets. We partner with our clients to provide cost effective solutions to real world issues and situations. Our experienced team brings a diverse set of skills that allows us to service a wide variety of needs. Our area of services and expertise focuses on bringing services and solutions to our clients that are normally only available to much larger firms. Coral Capital Advisors, LLC. provides services to Investment Banks, Private Equity Funds, investors, and both privately held and publicly traded companies, as well as various stakeholders in those organizations. This has included international public companies with operations on three (3) continents to smaller privately held domestic companies. Our experience in the areas of corporate advisory, due diligence reviews, and regulatory compliance allows for a cost effective and efficient solution to the issues at hand. Please feel free to contact our offices to see how we may be of assistance.