DTC
Also written as: DTC — Depository Trust Company
Abbreviation for the Depository Trust Company, the central securities depository for the United States that holds securities in electronic (book-entry) form on behalf of broker-dealers and banks.
Full Definition
The Depository Trust Company (DTC) is a subsidiary of the Depository Trust & Clearing Corporation (DTCC) and serves as the primary central securities depository in the United States. It immobilises physical securities and enables book-entry transfers of ownership, dramatically reducing the need for physical certificate movement. DTC's participant accounts hold the vast majority of publicly traded U.S. equity and fixed-income securities. Editors should distinguish DTC from DTCC: DTC is the depository entity specifically, while DTCC is the parent holding company that also encompasses NSCC and FICC.
Usage
Usage note: Always render as 'DTC' (all caps) on first reference followed by 'the Depository Trust Company' in parentheses, or vice versa. Do not confuse with DTCC, the parent entity.
In Context
- "All eligible shares will be deposited with DTC and credited to participants' accounts on the settlement date." — Offering circular / prospectus supplement
- "The company has arranged for DTC eligibility so that shares can be transferred electronically among broker-dealers." — S-1 registration statement