The Automated Customer Account Transfer Service (ACATS) is a system that facilitates the transfer of securities and cash between broker-dealers. ACATS allows customers to transfer their accounts, including securities and cash, from one broker-dealer to another without having to sell their securities or close their account. ACATS also allows broker-dealers to transfer customer accounts to other broker-dealers.
The ACATS system is operated by the Depository Trust & Clearing Corporation (DTCC). DTCC is a depository, registry, and clearinghouse for securities and other financial instruments. ACATS is used by broker-dealers to move securities and cash between each other in a safe and efficient manner.
ACATS is the industry-wide standard for the transfer of securities and cash between broker-dealers. ACATS transfers are processed through the DTCC's National Securities Clearing Corporation (NSCC) and Funds Transfer Pricing System (FTP). ACATS transfers are settled in the DTCC's Real-Time Gross Settlement (RTGS) system.
The ACATS system was designed to streamline the account transfer process and to minimize the risk of error. ACATS transfers are completed in a few days, and the customer's account is usually settled within two business days. ACATS provides customers with a high level of protection against the risks of error and fraud.
ACATS is a voluntary system, and broker-dealers are not required to participate. However, most broker-dealers participate in ACATS because it is the industry-wide standard for account transfers.
How long do DTC transfers take?
DTC transfers typically take two to three days to complete. However, the actual time it takes for a transfer to go through can vary depending on the specific bank or brokerage involved. For example, if you're transferring funds from one bank to another, the process may take a bit longer than if you're transferring between two brokerage accounts.
What is a position transfer?
A position transfer is the process of transferring an investment position from one account to another. This can be done for a variety of reasons, such as to consolidate accounts, to take advantage of different account features, or to simplify the management of a portfolio.
How long does a non ACAT transfer take?
A non-ACAT transfer is a process whereby an investor moves securities from one brokerage firm to another without going through the Automated Customer Account Transfer Service (ACATS). The process can take anywhere from a few days to a couple of weeks, depending on the complexity of the transfer and the cooperation of the two brokerage firms involved.
What does ACATS stand for?
The acronym ACATS stands for "Automated Customer Account Transfer System". This system is used by broker-dealers to electronically transfer customer accounts from one firm to another.
The system is designed to streamline the account transfer process for both the customer and the broker-dealers, and to reduce the paperwork and hassle associated with traditional account transfers.
The ACATS system is used by a number of major broker-dealers in the United States, and is overseen by the Financial Industry Regulatory Authority (FINRA).
Who initiates an ACATS transfer?
The answer to this question depends on the particular situation. In some cases, the broker initiating the transfer may request that the account owner complete and sign a transfer form. In other cases, the account owner may need to contact the receiving broker to initiate the transfer.