Depository Trust Company (DTC) is a New York corporation known as a trust company which performs the functions of a Central Securities Depository as part of the US National Market System. Since 1999 it has been a subsidiary of the Depository Trust & Clearing Corporation, a securities holding company.
DTC was formed under the special incorporation laws of New York for trust companies. DTC manages book-entry securities entitlement transfers for brokerage houses and maintains custody of global (jumbo) stock certificates and other stock certificates through its affiliated partnership nominee, Cede and Company. DTC maintains Omnibus Customer Securities Accounts for the account of the DTC Participant.
Even though DTC Participants own most of the stock of DTC, the DTC is technically a subsidiary of the Depository Trust & Clearing Corporation because DTCC owns the only voting stock.
DTC is not the holder of record of the securities for which it manages the custody. DTC instead designates Cede and Company, whose partners consists of DTC employees, as their main custodial Nominee pursuant to New York’s legislation called the Uniform Commercial Code, Article 8: Investment Securities.
- ^“The Depository Trust Company – DTC”. DTCC. Retrieved 2016-04-01.