DTC Eligibility

At Pearson Butler, we have decades of experience serving individuals, businesses, and families across Utah in over a dozen practice areas. With more than thirty qualified legal professionals, we have the resources and experience needed to resolve even the most complex legal matters.

DTC Eligibility

Contact the Securities Attorneys at Pearson Butler for Skilled Help

The Depository Trust Company (DTC) is one of the largest securities depositories in the world. DTC was founded in New York City in 1973. It is organized as a limited purpose trust company that provides safekeeping of securities balances. DTC also acts as a clearing house to settle and process trades in municipal and corporate securities.

DTC eligibility is crucial. If you are having any issues with eligibility or want to learn how to become DTC eligible, call the securities lawyers at Pearson Butler at (800) 265-2314.

The Importance of DTC Eligibility

DTC eligibility is a significant issue facing over-the-counter (OTC) issuers. Because of the size of the Depository Trust Company, having DTC eligibility means your securities can be deposited through DTC. Many OTC issuers have faced a “DTC chill,” meaning that their stock does not clear or trade electronically. Having a DTC chill on your stock essentially means that your stock cannot be traded easily.

DTC eligibility is required by major Exchanges, such as:

  • New York Stock Exchange (NYSE)
  • Nasdaq

You Need Experienced DTC Eligibility Help

You cannot apply directly to DTC for eligibility. Instead, you must have a relationship with a broker-dealer or other financial institution that is a participant and will sponsor your eligibility. DTC retains the right to deny eligibility without providing a reason for the denial.

Pearson Butler has attorneys experienced in helping clients become DTC eligible and get back in compliance with DTC eligibility requirements in the event of a DTC chill.

Contact Pearson Butler today to schedule a consultation with a DTC eligibility attorney. Call (800) 265-2314 to get started.

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