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Post by kranker on Jan 8, 2006 23:26:29 GMT -4
www.dtcc.com/nomorepaper/index.html------------------------------------------------------------------- Direct Registration System (DRS) Update: GETTING READY FOR DRS: WHAT FIRMS WILL NEED TO DO – Certificates go the way of the dinosaur – The securities industry continues to push paper certificates closer to extinction. On August 8, 2006, the SEC approved and posted the AMEX, NASDAQ, and NYSE rule changes requiring all listed issues to be DRS eligible. In addition, the regional exchanges have submitted similar rule changes to the SEC which were approved on November 29, 2006. Under the new rules: - all new issues coming to market on or after January 1, 2007 must be DRS eligible. - all currently listed issues must migrate to DRS by January 1, 2008.DRS provides for book-entry ownership of securities, registered directly on the books of the transfer agent or issuer. Through DRS the assets of the registered holder can move electronically to and from the transfer agent and broker dealer. Today, there are over 1,260 eligible DRS issues. The new rule change is expected to add over 9,000 listed issues to the program by January 1, 2008. In advance of the January 1, 2007 implementation date, each firm must provide information about DRS to their Sales Force, Underwriters, Operations Associates and Customers. The transition to DRS will further drive the industry towards the goal of dematerialization, thus reducing risk and cost for securities transactions. www.dtcc.com/nomorepaper/DRS_Update.pdf-------------------------------------------------------------------- See the SIA's Securities Industry Immobilization and Dematerialization Implementation Guide for more information on DRS implementation. www.sia.com/stp/pdf/SIADematerializationImpGuide.pdf-------------------------------------------------------------------- February 2006 - "An Investor's Guide to The Alternatives of Holding Physical Certificates," by SIA www.sia.com/stp/pdf/PhysCertGuide2alternatives.pdf--------------------------------------------------------------------
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Post by kranker on Jan 22, 2006 2:21:31 GMT -4
The Elimination of Paper Stock Certificates Is Near Published June 29, 2005 by Ant & Sons. Dematerialization, otherwise known as the elimination of paper certificates, is being pushed through the state level and is being signed by Governors that believe they will save tax payers, companies, and shareholders millions of dollars a year. Sharing in this view point is Jill M. Considine, chairman and CEO of the Depository Trust Company, who also says that by eliminating its legal requirement that companies issue paper stock certificates, state legislatures will save investors and companies millions of dollars a year. Paper stock certificates cost companies, investors, banks and brokers hundreds of millions of dollars each year to print, register, ship, examine, file and keep safe, even though they’re involved in only 10% of all trades daily on U.S. markets. Other leading supporters include the National Securities Clearing Corporation, the Security Industry Association, and Annette Nazareth of the Securities and Exchange Commission. Although these changes may be well intentioned, it may become a disastrous move if one company or transfer agent seeks assistance from the DTCC, NSCC, or the SEC. This might well become the case because if there are questions as to ownership or fraudulent activity of the distribution of shares, those organizations have the only reliable source and may not disclose accurate trading information on that particular security. www.antandsons.com/2005_06_01_antandsons_archive.html
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Post by kranker on Mar 19, 2006 10:56:08 GMT -4
DRS May Soon Become a Listing Requirement by John Koegel DTCC’s Direct Registration System (DRS), which enables investors to maintain securities electronically on the books of a transfer agent or issuer, is moving closer to becoming an industry requirement. Late last year, the American Stock Exchange, the Nasdaq Stock Market and the New York Stock Exchange all voted to make DRS a requirement for companies wishing to list with them. The next step is to file a rule change with the Securities and Exchange Commission (SEC), expected in early 2006. Once approved by the SEC, the new listing requirements could go into effect in short order. Under the proposal, new issues coming to market this year (before Jan. 1, 2007) would have the option of electing to enter DRS immediately, and issues coming to market after Jan. 1, 2007 would be required to be DRS-eligible on the first day of trading. Existing issues (those who came to market before Jan. 1, 2007) would be required to migrate to DRS no later than Jan. 1, 2008. “This is a major step toward the eventual elimination or dematerialization of paper certificates, and will provide more investors with greater security, lower risk and increased trading effectiveness over ownership of physical securities,” said James Balbo, managing director for Asset Services Product Management. “We anticipate that it will add as many as 10,000 issues and 250 transfer agents to DRS.” DRS provides for electronic direct registration of eligible securities in an investor’s name on the books of a transfer agent or issuer, and allows transfer agents and brokers to transfer shares between each other electronically. Investors also have the option of maintaining securities electronically on the books of their brokers by holding shares in “street name.” “Investors who desire to hold on to existing physical securities can do so until they decide to transfer or sell them,” said Joe Trezza, vice president for DTCC Asset Services. “But if those securities are lost, stolen or destroyed, or if they are surrendered in a tender offer or other corporate action, they will be replaced by electronic DRS statements once issuers adopt the new requirement.” The number of issues that are DRS-eligible has been growing steadily over the past year, as more companies – including such widely held issues as Southwest Energy, US Airways and Disney adopt electronic share ownership. More than 1,130 issues were DRS-eligible on Dec. 31, 2005, compared with 960 on Dec. 31, 2004.@
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Post by kranker on Mar 24, 2006 23:09:44 GMT -4
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Post by kranker on Mar 26, 2006 17:33:42 GMT -4
The DTCC wants to eliminate paper certificates - they're so messy, and icky, and stuff Location: Blogs Bob O'Brien's Sanity Check Blog Posted by: bobo 3/23/2006 I was just sent this little slice of heaven www.dtcc.com/nomorepaper/index.html in my email inbox. It is filled with smiling, fleshy faces promising a world of eternal happiness, and sunny days, and perfect health...if only we eliminate paper certificates. Because the DTCC, which is owned by the exchanges and the brokers (and the exchanges really are the brokers - they are owned by the brokers as well), is getting ready to help us - some more. Now, I admittedly am suspicious whenever Wall Street wants to "help" investors. Usually that is akin to the IRS helping one with taxes - the person being helped is usually far worse for it. I'm particularly suspicious when the help being offered is to eliminate the single mechanism investors have to verify that their brokers aren't lying to them about the investors' ownership of stock. That kind of makes me nervous. Very nervous. You think that might be because the DTCC lies? We caught them lying when they claimed they had never been invited to the NASAA conference. We caught them lying when they invented statements and inserted them into Cam Funkhouser's mouth. Dr. Byrne, CEO of OSTK, contends that they are lying through their teeth. Said so publicly, just recently. No suit over that, BTW. Byrne went on Rob TV and called the DTCC an organization run by criminals, that was lying through its teeth, and invited them to sue him - and nothing. Not a peep. Odd. Why wouldn't the DTCC sue Byrne, unless it wanted to avoid discovery, and exposure of its crookery? Maybe they want to avoid having to take the fifth, like Grasso recently had to, when questioned about the larcenous dealings of the specialists? But anyhow, here they are with a warm offer of help. Think of how helpful the Stock Borrow Program has been - consider the enormous assistance that not having to deliver shares has been for sellers intent upon driving the price of a stock through the floor. Very helpful, that DTCC. Very, very helpful. And now, these beaming Stepford faces assure us that our world will be so much better without paper certificates - or as I like to call them, "proof of genuine shares." We are invited to consider all the money companies will save by eliminating them. Actually, that doesn't help me much. We are also told that we won't be subjected to the annoyances of having to hassle with lost certificates. Actually, that doesn't help me much, either - I've never in my life sold stock and then failed to deliver it. Upon consideration, the only people actually helped are the DTCC and their broker/owners. They can process more trades, faster, and there is no mechanism to replace the paper certificate as the ultimate proof that you own what you paid for. If one was cynical, one could speculate that this would be the ultimate way to cure the fail to deliver problem - simply eliminate the only mechanism most have to prove ownership - and then we are all reliant upon the DTCC, and their broker/owners, to be honest. You know, the brokers who are being fined constantly for crookery, and the DTCC, which has been caught in two lies by the Bunny, just recently. Why do I feel like I have to check my wallet when I read stuff like this? In fairness, the DRS promises to be a decent substitute - direct registration with the issuer. But here's my problem: The same liars and cheats that compose much of Wall Street will be in charge of that system, and at the end of the day, I don't have any proof like a paper certificate. None. Just someone's electronic word - from the pathological liars on Wall Street. That's a problem. A big problem. That the DTCC has been able to ramrod this past all the states is frightening at a profound level. When the DTCC wants to help you, my hunch is that it wants to help itself to your money. Call it a gut feel. Copyright ©2006 Bob O'Brien thesanitycheck.com/BobsSanityCheckBlog/tabid/56/EntryID/170/Default.aspx
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Post by kranker on Jun 17, 2006 18:03:06 GMT -4
- STP, Dematerialization, Grandfathering (1) The authority of the SEC to implement the Grandfathering in of NSS is being challenged and some in the House and Senate are listening (2) The efforts we need to take concerning the very real and immediate problem of "Dematerialization" (Elimination of paper stock certificates) being thrushed through our states by the SEC (Annette Nazareth), the DTCC (Jill Considine), the NSCC and the SIA (Securities Industry Association). Appeal to your Governor to change their minds about "dematerialization" as it is a means to another end that we won't like, IMHO. (3) The SEC, DTCC, and the NSCC are working very hard for a full implementation of STP (Straight Through Processing) that will be operated by OMGEO a subsidiary of DTCC. This is T+0 settling with no paper certificates to back up the trading. Direct Registration of your securities will not stop, hinder, or prevent the STP future "failure to delivers" from being converted into counterfeited NSS. I'll explain a lttle better below. (4) Once Dematerialization is complete, STP will be permitted to run wide open with more than likely an order from the SEC to ban the ownership of paper stock certificates. I will try and explain briefly below. I have been trying to get the word out about the "dematerialization" (the wiping out of paper certificates) push by Jill Considine (DTCC), Annette Nazareth (SEC), Securities Industry Assoc., and the NSCC. The desire to eliminate the "paper stock certificates" is part of the agenda to move to "STP (straight through processing)" which is same day settling (T+0). This is possible, but the cost is going to be the complete loss of any possibility of having a true, honest, market with integrity to protect the company and the shareholders. Literally and end to any hope of "transparency" from the market place and the regulators as their will be no practical means to apply any pressure to get needed information. OMGEO handles the STP operations for the DTCC and unless the "Dematerialization" effort is completed, the DTCC cannot move truly to STP in the market place, thus capturing the entire market process for them and eliminating the transfer agent for the most part. Right now we have 6 billion dollars a day worth of trades that are "failing to deliver". Statistics say that only 18% of them can legitimately be covered by the NSCC's "borrowing pool" leaving the remaining 82% to take on, imho, "counterfeit status" (NSS). These incredible FTD's are coming under a T+3 settling formula and the NSCC, DTCC, and SEC is blaming "paper stock certificates" for the delays that are causing the failures. If the SEC is this blind or naive, then we need to rewrite the system and overhaul the SEC from the top to the bottom. The DTCC and the NSCC are throwing NSS's into the mix to get the transaction volumes plus the positions that they may never have to cover and in turn is placing the blame on "paper certificates". The current T+3 settling formula is swamping the market system with failures that can't be covered because the problem is the NSS that are being allowed in the market place and the SEC acts as though it believes these failures are because the shareholders are holding back paper certificates and the processing time is taking to long. Right now this is sticking out like a sore thumb, but when STP (T+0) is running full speed ahead then the daily FTD's will be enormous daily and will thus become the norm and companies experiencing NSS will be lost in the swarm. What is holding up the SEC, DTCC, NSCC, etc... from running "STP" at full speed? "Dematerialization" is incomplete. We still have 2 states (ARIZONA and LOUISIANNA) that require companies to issue paper stock certificates to shareholders of record and as long as these state laws require companies trading to issue paper stock certificates "dematerialization" is on hold along with "STP". When "dematerialization" is accomplished, IMHO, the SEC will step in and BAN / OUTLAW/ MAKE IT ILLEGAL for anyone to own or hold paper stock certificates. All in the name of speeding up the settling process. When this is accomplished and made law by the SEC then there is no way any company or Transfer Agent is going to be able to verify it's shareholders or track a possible "professional trading position" being held against the company because all of the info will be held by the NSCC, the DTCC, and the SEC. We have already seen the performance of these regulating organizations when they are approached for disseminating of information. Even when a company is trying to protect itself in an Administrative Hearing, the company cannot get a court order or FOIA to work for them. This is the "ISSUING COMPANY" that has reporting obligations and for whom these regulating agencies are supposed to be cooperating. These companies whether in desperate situations or not are prohibited from seeing or obtaining information on their company that is by "all rights", imho, their particular right over and above the rights of the SEC, the DTCC, or the NSCC, etc.... boards.charlierose.com/board/topic.asp?ti=13494
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Post by kranker on Jul 1, 2006 13:51:18 GMT -4
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Post by kranker on Jul 2, 2006 10:20:17 GMT -4
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Post by kranker on Nov 11, 2006 18:52:58 GMT -4
www.thesanitycheck.com/Blogs/BudBurrellsBlog/tabid/84/EntryID/505/Default.aspxSEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents Location: Blogs Bud Burrell - Front and Center Posted by: bburrell 11/3/2006 9:25 AM The story of this pending change is ominous to say the very least. I guess seeing a Third World Country like India go to T+0 was the straw that finally broke them. The potential implications of a pure electronic system without transparency for abuse is simply unmeasurable. We can't get transparency now, and with a system they control, the institutional wholesale counterfeiting of our securities will literally explode. Who wins here? Follow the money. The owners of central banks globally will have their backs broken with the profits from the phony currency and securities transactions that will explode exponentially. You don't expand a system with the very features that have broken it. I say again, this conduct is TREASON. If the GAO finds anything else, you can toss their reputation for intergrity in the nearest landfill, which is where they will belong if they don't stop this crap. I say now that I am suspicious. Both the SEC and the GAO report to Congress, and I find it hard to believe that the Congress will cite its own failure of oversight and corruption in any real, ungloved report. To the GAO, prove me wrong, PLEASE!
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Post by kranker on Dec 29, 2006 20:11:44 GMT -4
Under the rule change, newly listed issues coming to market on or after January 1, 2007, will be required to be DRS-eligible on the first day of trading. Existing listed issues will have to become DRS-eligible by January 1, 2008. DRS enables companies and investors to do away with paper certificates altogether. It provides for electronic direct registration of eligible securities in an investor’s name on the books of a transfer agent or issuer, and allows transfer agents and brokers to transfer shares between each other electronically. Shares also can be held electronically in street name through a participant of The Depository Trust Company (DTC). www.dtcc.com/Publications/dtcc/sept06/certificates_get_big_push.html
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Post by kranker on Dec 30, 2006 12:30:12 GMT -4
Doing Away with Paper, State by State In 2005, three U.S. states that still required companies to issue paper stock certificates – Delaware, Louisiana and Missouri – all enacted new laws allowing public companies incorporated in those states to issue uncertificated or “paperless” shares. As a result, a number of public companies incorporated in these states have already indicated they are likely to discontinue issuing physical certificates and instead begin issuing all new shares electronically through the Direct Registration System. The effective dates for the new laws in the three states: Aug. 1, 2005 - Delaware Aug. 15, 2005 - Louisiana Aug. 28, 2005 - Missouri The only remaining U.S. jurisdictions that still require public companies incorporated there to issue paper stock certificates are Arizona and Puerto Rico. Here are links to the new state laws: Delaware- Delaware HB 150 Louisiana - Louisiana HB 645 Missouri - Missouri HB 678 www.dtcc.com/nomorepaper/industry/state_by_state.html
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Post by kranker on Dec 30, 2006 12:32:02 GMT -4
Withdrawals-by-Transfer (WTs) in Statement Form The solution: Don’t convert a security eligible for the Direct Registration System (DRS) into paper. When you take securities out of DTC’s safekeeping, request a statement of ownership rather than physical certificates. It could save you $32 for every request. DRS is a better, more cost-efficient process for customers seeking to hold assets in their own name. Behind the solution: DRS is the securities industry’s electronic book-entry system. It allows an investor’s ownership of a specific security to be recorded electronically and maintained directly on the books of the issuer or the issuer’s designated transfer agent. The result: Substantial savings result from electronic ownership because the investor has no obligation to safekeep or transport physical certificates. Instead, investors receive a DRS statement of holdings and ownership. Benefits of DRS statement ownership: Significantly less cost to issue and maintain ownership records. Faster transfer turnaround for customers. Economical processing solution for customers choosing not to hold shares in “street name.” Elimination of lost certificate filings and reduction in state escheatments. Ease of processing corporate actions. More efficiency in managing estate planning. Next steps: Educate your front office staff about the benefits of DRS processing. Work with your vendor or systems staff to default WTs to statement ownership rather than physical certificates. If you are a publicly traded company, talk to your transfer agent about joining DRS as an eligible corporation. Contact DTCC for more information on how you can save money handling WTs. Phone: 1.212.855.5745 Email: nomorepaper@dtcc.com www.dtcc.com/nomorepaper/industry/solutions_wt.html
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