Medallion Signature Guarantees

Medallion Signature Guarantees are used to authenticate the signature and capacity of a person requesting the redemption or transfer of securities. Its use protects the issuer of the security; the owner(s) of the security; and transfer agents because a guarantee limits their liability and losses if a signature turns out to be forged. By affixing the medallion signature guarantee stamp, the guarantor warrants that at the time of the signing:

  • The signature was genuine
  • The signer had legal capacity to sign; and
  • The signer was the appropriate person to sign

The Securities Transfer Agents Medallion Program® (STAMP), The Stock Exchanges Medallion Program® (SEMP) and The New York Stock Exchange Inc. Medallion Signature Program℠ (MSP) are the leading signature guarantee programs recognized by all major financial services associations throughout the United States and Canada, and are endorsed by the Securities Transfer Association (STA).

  • STAMP (Securities Transfer Agents Medallion Program): Participants include transfer agents, Broker/Dealers, clearing firms and other financial institutions.
  • SEMP (Stock Exchanges Medallion Program): Participants include regional stock exchange member firms, and clearing and trust companies.
  • MSP (New York Stock Exchange Medallion Signature Program): Participants include NYSE member firms.

Medallion Coverage Limits

It is important to understand that there are several different coverage limits based on the prefix of the stamp itself. Each prefix is shown below with its corresponding coverage per transaction.

A   $1,000,000
B   $750,000
C   $500,000
D   $250,000
E   $100,000
F   $100,000 (Credit Unions)
X   $2,000,000
Y   $5,000,000
Z   $10,000,000