3.3.2. Applying for DTC Eligibility
The MSRB requires that within two business hours after the Time of Formal Award, the underwriter must apply to an SEC-registered securities depository on behalf of the new issue, to establish the issue’s eligibility for the depository’s services. A securities depository is a facility where securities are deposited and held for ease of transfer between owners, and where transactions are cleared and settled. Municipal securities are almost exclusively held in the Depository Trust Company (DTC).
The DTC accepts submissions for new municipal issues only through an electronic system called the New Issue Information Dissemination Service (NIIDS). The NIIDS system accepts information about new issues and distributes it to dealers, data vendors, and other market participants.
Information about the new issue must be communicated to the DTC to ensure that:
• Other broker-dealers have timel