• Provides customers with a single depository interface for U.S. and Canadian dollar transactions, reducing cross-border processing costs and inefficiencies.
• Enhances custodial services with expanded processing capabilities for income, redemption and corporate actions payments.
• Enables customers to receive and make payments on all corporate action events for eligible Canadian issues including tender offers and rights issues in Canadian dollars or a mix of U.S. and Canadian dollars.
• Provides the option of settling in either U.S. or Canadian dollars.
• Enables customers to concentrate all U.S. and Canadian security positions in their DTC account, eliminating the need to maintain split inventories which would require repositioning in preparation for corporate action events.
• Provides tax benefits that allow DTC customers to obtain “at-source’ tax relief for Canadian issues. (“At-source” relief allows customers to pay the lower tax rate at the time of a dividend payment rather than a higher or maximum rate, which would require a customer to file a tax reclaim to recover the over-withheld amount.)

New voluntary announcements have been created to process Canadian dollars.  The announcements will be updatable as information is received.  A complete announcement encompasses the body of the RIPS envelope, the payrates and any comments added by operations.

Redemption and voluntary reorganization event elections will be made through the existing tender offer processor (PTOP).  All rights and warrant processing will be done through existing rights and warrant functions (PSOP and WARR).  Current payment allocation functionality will be updated to provide a view of allocated items (SDAR) – including dividend payments as well.

Additional end of day reports will be generated for customer reconciliation purposes.

For More Information:

For more information contact Daniel Thieke at  212-855-4162 (dthieke@dtcc.com), or John Abel at 212-855-8434 (jabel@dtcc.com).