Federal Register #SR-DTC-2026-009

SEC Notice: Proposed Amendments to DTC Redemptions Service Guide and Operational Arrangements

This opportunity involves a proposed rule change by The Depository Trust Company (DTC) affecting its Redemptions Service Guide and Operational Arrangements, as published by the Securities and Exchange Commission (SEC). - Government Buyer: - Securities and Exchange Commission (SEC) - OEMs and Vendors: - The Depository Trust Company (DTC) - Products/Services Requested: - No products or services are being procured; this is a regulatory notice regarding operational changes - Notable Requirements and Details: - Updates the Payment without Presentation (PWP) process for eligible redemption and maturity events - Eliminates the need for physical certificate presentment and related documentation for eligible securities - Relies on automated notifications and DTC's book-entry records for processing - Mandatory participation in the PWP process for all eligible fully registered debt securities represented by a physical certificate held at DTC and registered in the name of Cede & Co. - Opt-out from PWP only allowed for legal or regulatory requirements or for governmental entities - Establishes protocols for retention and destruction of physical certificates - No procurement, contract, or purchase is involved; this is a regulatory/operational update

Description

The Depository Trust Company (DTC) has filed a proposed rule change to amend the Redemptions Service Guide and the Operational Arrangements to update the Payment without Presentation (PWP) process. The amendments aim to eliminate the need for physical certificate presentment and related physical documentation for eligible redemption and maturity events, relying instead on automated notifications and DTC's book-entry records. Participation in the PWP process would be mandatory with opt-out only where necessary, and retention and destruction protocols for physical certificates would be established. The changes are intended to reduce operational risk, cost, and delay, and to promote prompt and accurate clearance and settlement of securities transactions.

View original listing