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Posted 4/8/2013

DTCC and Industry Group Plan for Dematerialization of Paper Certificates

In a white paper to the industry in July 2012, "A Proposal to Fully Dematerialize Physical Securities, Eliminating the Costs and Risks They Incur", the Depository Trust & Clearing Corporation (DTCC) and its subsidiary, the Depository Trust Company (DTC), sought feedback from all industry stakeholders, including banks, brokers/dealers, transfer agents, issuers, regulators and industry associations, on a multiyear plan.

Among other things, the plan would (1) achieve the full dematerialization of U.S. financial markets and (2) eliminate the costs and risks associated with the physical certificates still outstanding.

Since that time, comments were received and the effort to implement the plan are continuing. DTCC is leading an industry working group with a view to possibly seek rules that would eliminate the opt - out for physical certificates for all new issues in 2014. We will continue to monitor any developments and keep you informed.