DTCC provides first electronic certificate as part of dematerialisation efforts
28 June 2021 US
Image: DTCC
The Depository Trust & Clearing Corporation (DTCC) has launched its new underwriting central (UWC) platform, an automated service for electronic certificates of deposit (CD).
The new platform, which is offered by DTCC’s subsidiary, The Depository Trust Company (DTC), provides a paperless process for the delivery of CDs, increasing efficiency through automation, improving data quality, reducing risk, and providing greater transparency into the eligibility life cycle.
DTCC explains that the launch represents “an important step in bringing the industry closer to achieving full dematerialisation”.
The new platform leverages electronic vaulting technology to transmit and store data, as well as an e-signature process to execute digital certificates.
The launch of the new electronic CD platform comes following a successful pilot with nearly 30 underwriters, including BNY Mellon Capital Markets, Fidelity Capital Markets and Multi-Bank Securities, as well as more than 50 issuers from regional branches based across the US, including BLC Community Bank and Luana Savings Bank.
Commenting on the new service, Ann Marie Bria, DTCC executive director, asset services business management, says: “The new electronic CD capability reduces the risk of potential disruptions in the physical transport and in-person delivery receipt of CDs, all challenges that were amplified during the shift to remote working as a result of the COVID-19 pandemic.”
“This new paperless process eliminates shipping costs and manual processes and the risk of closing delays for the issuer, Bria adds.
In addition to this effort and in support of dematerialisation, DTCC reveals it is also working on efforts to address other paper-based asset classes at their issuance, such as corporate debt, as well as existing securities that are eligible at DTC.
The new platform, which is offered by DTCC’s subsidiary, The Depository Trust Company (DTC), provides a paperless process for the delivery of CDs, increasing efficiency through automation, improving data quality, reducing risk, and providing greater transparency into the eligibility life cycle.
DTCC explains that the launch represents “an important step in bringing the industry closer to achieving full dematerialisation”.
The new platform leverages electronic vaulting technology to transmit and store data, as well as an e-signature process to execute digital certificates.
The launch of the new electronic CD platform comes following a successful pilot with nearly 30 underwriters, including BNY Mellon Capital Markets, Fidelity Capital Markets and Multi-Bank Securities, as well as more than 50 issuers from regional branches based across the US, including BLC Community Bank and Luana Savings Bank.
Commenting on the new service, Ann Marie Bria, DTCC executive director, asset services business management, says: “The new electronic CD capability reduces the risk of potential disruptions in the physical transport and in-person delivery receipt of CDs, all challenges that were amplified during the shift to remote working as a result of the COVID-19 pandemic.”
“This new paperless process eliminates shipping costs and manual processes and the risk of closing delays for the issuer, Bria adds.
In addition to this effort and in support of dematerialisation, DTCC reveals it is also working on efforts to address other paper-based asset classes at their issuance, such as corporate debt, as well as existing securities that are eligible at DTC.
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