If DTC suspects that all or part of its holdings in securities may not be freely transferable, as is necessary for DTC services, it may decide to insquent one or more of its services or freeze all security services. If there is a capital measure, DTC will temporarily cool security for accounting activities. In other cases, a capital measure may result in more sustainable cooling. This may force the issuer to re-apply for eligibility. It provides automated clearing and confirmation services for OTC derivatives, including credit, equity and interest rate derivatives. It also offers a comparison of cash flow and bilateral clearing services. Deriv/SERV`s customers include resellers and buy-side companies from 30 countries. In 2006, Deriv/SERV liquidated 2.6 million transactions. While debt issuances are added upon request, all equity issuances are subject to an application review process. Once approved, DTC sends the cancellation inventory to the agent and gives instructions to add security to the FAST credit. As requested by fast Balance Certificate Agreement, the agent must create a balance certificate that represents the FAST-Balance position for each security.
The Fast Automated Securities Transfer (FAST) program is a contract between DTC and transfer agents that eliminates the movement of physical securities by allowing agents to act as custodian banks for DTC….