Dematerialize/Trade Paper Documents
Dematco is initially dematerializing paper insurance products but expects to market to the issuers of all forms of financial instruments including private equities, public equity, convertible and straight bonds, and asset-backed instruments at international banks, trust companies, brokers and exchanges.
With thousands of types of securities in the world, there are many different ways to achieve dematerialization. Because of this, it is not possible to give an exact price or time-scale online. If your organization has a security that you are considering dematerializing then please contact our office. After an initial discussion on the security that you wish to dematerialize, we will arrange for a specialist in that type of security to discuss your needs further.
Typically we charge a two percent (2%) fee based on the face value of the document for dematerializing, and three percent (3%) fee of the face value upon completion of structuring any sub-products. This is a one-off fee. Once dematerialized, you are free to place the instruments anywhere in the world’s custodian systems without further charge from us; although we suggest the instantaneous clearance and settlement in real time available on the PETS trading platform. Our fees do however vary widely according to the complexity of the work involved, the number of instruments involved, and the trading value of the instruments.
Often customers will have several different instances of the same class or type of instrument that they wish to dematerialize. Once we have set up the process to dematerialize one of the types, the others may follow much the same pattern. Because of this we are able to charge less for the subsequent dematerializations. We refer to the first instrument(s) to be dematerialized in a set as the Pilot instruments.
It may take up to 6 weeks to complete the dematerialization process of a pilot instrument. Once pilot instruments have successfully been converted, 2 - 3 weeks is a more typical turnaround for subsequent instruments.
