DTC Eligibility

Fuel Your Stocks for Electronic Trading & Settlements

DTC Eligibility is a critical step in the process of going public in the United States. The Depository Trust Company (DTC) is a central securities depository that holds securities on behalf of its participants. DTC eligibility ensures that your securities can be traded and settled electronically, which can save you time and money.

DTC Compliance Simplified

Get your securities DTC eligible and start trading today

The DTC eligibility process

After receiving approval for trading by FINRA, issuers must apply to the DTC for their initial eligibility. The DTC holds all the issuer’s free-trading shares on deposit, which becomes the company’s “float.” However, issuers cannot directly apply to the DTC for eligibility. They must establish a relationship with a broker-dealer or financial institution (market-maker) that will sponsor the eligibility process. 

An issuer must have a transfer agent with a DTC Operational Arrangements Agent Letter on file. NASDAQ and NYSE issuers also need to subscribe to DTC’s FAST (Fast Automated Securities Transfer) and DRS (Direct Registration System) programs.

A win-win for issuers and investors

Our team of seasoned experts can help you achieve DTC eligibility. We will conduct a comprehensive compliance assessment to determine your company’s current status, and then create a customized compliance plan to address any gaps. We will also assist you in compiling all necessary documentation and facilitating communication with regulatory bodies, streamlining the DTC eligibility process.
Easy way to trade

How to Maximize Your Chances for DTC

Follow these 5 steps to increase your chances of being approved for DTC

“Working with Databoss was a game-changer for our company’s IPO. Their deep understanding of the market. Thanks to their guidance, we confidently navigated the complexities and achieved a highly successful public offering.”

Edward Kennedy
Director, Xeriant Inc.

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Frequently Asked Questions

Your Queries Answered to Navigate Your Databoss Journey with Confidence.

To become DTC eligible, a company must submit an application through an authorized DTC participant, typically its transfer agent or broker-dealer. The application is reviewed for compliance with DTC’s eligibility requirements.

DTC eligibility benefits investors by providing greater liquidity for the securities, faster and more secure transactions, and the ability to hold and manage their investments electronically.

Yes, DTC eligibility requires compliance with certain regulatory and operational criteria set forth by the DTC, including adequate trading volume, proper documentation, and adherence to applicable securities regulations.

Yes, DTC eligibility can be revoked if a company no longer meets the eligibility criteria or violates DTC’s rules and regulations.

DTC eligibility applies to a wide range of securities, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), and other eligible financial instruments.