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:: NEW YORK STOCK EXCHANGE, INC. :: The signature guarantee has been an integral part of the securities transfer process for over one hundred years. This process is governed by the Rules of the Uniform Commercial Code (UCC). The Issuer of a Security and/or their Transfer Agent is held liable for improper securities registration. To register or re-register a security, the Issuer or Transfer Agent relies upon the UCC warranties inherent in the presence of a signature guarantee. These warranties, namely, that the signature is genuine, the signer is an appropriate person to endorse, and the signer had the legal capacity to sign, are made each time an MSP participant places their Medallion on a securities transaction. The MSP “New Technology” Medallion, adopted in 2001, employs security features designed to deter counterfeiters. The ink in the “New Technology” Medallion contains an invisible security compound that can be detected only by a “New Technology” Medallion document reader employed by the Transfer Agent. Further, to verify the status of a particular Medallion and to expedite processing, each “New Technology” Medallion contains a bar-code that is scanned by a Transfer Agent scanning device. These new Medallions are unique and differ significantly in format and color from previous Medallions. MSP New Technology Medallions The New Technology Medallion's principal security feature is its ink. There are two primary components comprising the security ink: the visible green pigment, and the invisible security compound that is only detectable using a Transfer Agent Document Reader. Bar code technology is also utilized to facilitate automated processing, thereby reducing the likelihood that a missing Medallion will be used to further improper activities. During the past three years, over 140,000 "Old Technology" Medallions - first issued in 1992 - have been retired and replaced with the more secure New Technology Medallions. |