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DRS Guidelines Committee Update

DRS Guidelines Committee Update. STA Annual Conference October 20 th , 2006 Katie Sevcik. DRS Enhancements. Recent DRS Enhancements Pending DRS Enhancements How will agents/issuers get paid for these enhancements?. Recent Enhancements. Addition of a second TIN/SSN field for matching

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DRS Guidelines Committee Update

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  1. DRS Guidelines Committee Update STA Annual Conference October 20th, 2006 Katie Sevcik

  2. DRS Enhancements • Recent DRS Enhancements • Pending DRS Enhancements • How will agents/issuers get paid for these enhancements?

  3. Recent Enhancements • Addition of a second TIN/SSN field for matching • Excess Medallion Coverage – DTCC’s new insurance program • Increases coverage from $3 million to $25 million per transaction • Allows brokers to pay per transaction

  4. Pending DRS Initiatives • Move “all” book-entry shares, sell fractional shares, and close the registered account • High level scenarios/workflows complete • DTCC is currently documenting the detailed specifications • Industry would like programming to be completed in 2007

  5. Pending DRS Initiatives • Restricted DRS shares • Identifying legends • Broker/bank regulations – good control location • October 2006 industry meeting • Gifting DRS shares • Corporate Action Processing • Commingling of DRS and plan shares • Registration concerns for 401k plan distributions

  6. How do TA’s pay (or get paid) for all these enhancements? • To date – agents/issuer agents are incurring the costs • for development • for on-going costs • AND for each transaction

  7. Future Enhancements? • DTCC to charge participants for “move all, sell fracs, close account” development • 2-year cost recovery to agents • Debate on whether issuers should be paying for further enhancements • If yes, SEC will need to require issuers - new regulation

  8. Thank You Questions and Answers

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