No-More-Paper Web Campaign Wastes No More Paper
DTCC recently launched a new “No-More-Paper” information campaign on its DTCC.com Web site as part of an effort, in conjunction with the Securities Industry Association, to reduce or eliminate the use of paper stock certificates and the high costs associated with them in U.S. securities markets.
The Web campaign, called “No More Paper,” (www.dtcc.com/leadership/issues/nomorepaper) is aimed at educating and updating:
- Individual investors on the advantages of owning paperless securities versus physical certificates;
- Public companies on how to go about converting their common stock to an all-electronic issue; and
- Financial service industry professionals on the savings to be generated by substituting paperless transactions in place of expensive manual handling of paper certificates.
New Focus on Public Companies, Investors
“Now that nearly all states no longer require companies to issue paper certificates for common stock, our focus needs to be on helping public companies make use of the Direct Registration System and on helping investors exchange their paper securities for the safety of electronic ownership,” said Joe Trezza, DTCC Asset Services product manager.
For individual investors, the new online material explains the difference between direct registration and “street name” registration, and offers suggestions on how investors can work with transfer agents to swap the physical certificates they now own for electronic ownership.
Among the material the campaign makes available for securities industry professionals are the cost-saving tips and price incentives available for not allowing electronic direct registration certificates to be converted back into physical certificates, which then require expensive manual processing.
A Tally of Paperless Markets Worldwide
The No-More-Paper campaign also explains how securities in many markets throughout the world are entirely paperless and, in many cases, have been for years. Even “China, the place where paper was invented, no longer relies on paper securities at all,” the Web pages note.
“We encourage financial service companies to put the link to the campaign site on their intranets so their own employees can stay abreast of this issue, as well as learn about the extensive cost savings available,” Trezza said. “We also encourage them to list the link on their external investor sites so that investors have the opportunity to look at this material and make decisions about physical and non-physical securities ownership.”
Some of the materials on the campaign site are also available in paper format and can be ordered from DTCC. The site itself, which is of course entirely paperless, is www.dtcc.com/leadership/issues/nomorepaper. Questions about the site, and requests for written materials discussed on the site, can be sent by email to nomorepaper@dtcc.com. @