Considering that the DTC program is a very centralized means of trading securities, it is quite beneficial that your firm becomes eligible to participate in the program. Of course, there are other obvious benefits that you gain from becoming DTC eligible.
Intangible Settlements
Instead of the old process of presenting physical certificates to settle any proposed trades, the DTC method eliminates any actual certificates and allows you to settle any trades electronically. This method makes them available almost instantly and dramatically reduces the cost that previously had been typical of securities trading.
Meet Requirements
If you want to be trading on the world’s largest exchanges, you will have to make sure that you are eligible for the DTC process. This is because, with most of them, such as the New York Stock Exchange and the AMEX exchange, it is a requirement. You will not be able to trade on their exchanges unless you are participating with DTC.
Increased Valuation
When it comes to your funds being deposited, the valuation at which they are rated is extremely critical. Since funds that are able to be traded and deposited with DTC are strongly preferred in the marketplace, they are naturally valued higher than those that are not DTC-certified. Clearly, then, it is in your best interest to become DTC eligible as soon as you possibly can.
If you would like to learn more about DTC, please contact Colonial Stock Transfer Company at https://www.colonialstock.com/. They will go through all of the requirements.
