There are 4 levels of eligibility with DTC:

Level 1 – CUSTODY Only
DTC will only accept physical certificates for deposit. While the securities will clear through DTC, the securities will remain registered in either the beneficial holders name or in the name of the broker presenting them to DTC – they will not be transferred into the name of Cede & CO.

Level 2 – DTC Eligible
Only physical certificates can be deposited with DTC. DTC has the ability to serve as the custodian and may hold securities in its nominee name, “CEDE & Co.”

Level 3 – FAST Eligible
The FAST (Fast Automated Securities Transfer) program allows DTC to hold securities in book entry format. This level of eligibility provides security holders the ability to deposit and withdraw shares electronically to a brokerage account. FAST eligibility automatically includes access to the DWAC (Deposit Withdrawal at Custodian) system. This is the primary method of electronically depositing or withdrawing securities from a brokerage account. The fees for this service are automatically billed to the security holders brokerage account.

Level 4 – DRS Eligible
DRS eligibility provides security holders an alternative to the DWAC system. It allows security holders to hold their securities in in book entry form directly with the issuer. DRS transactions do not require a physical medallion signature guarantee as the medallion guarantee is built into the system. Once a broker initiates a DRS transaction the transaction includes the signature medallion protections for the transaction. This can make DRS transactions significantly easier for security holders. This level of eligibility is part of the listing requirements for senior exchanges.