The Direct Registration System (DRS) provides registered owners with the option of holding their assets on the books and records of the transfer agent in book-entry form. Through DRS, assets can be electronically transferred to and from the transfer agent and broker/dealer.

Overview

The Direct Registration System (DRS) provides registered owners with the option of holding their assets on the books and records of the transfer agent in book-entry form.  Through DRS, assets can be electronically transferred to and from the transfer agent and broker/dealer.   Instructions to transfer shares are sent via the DRS Profile Modification System.

Who Can Use this Service

Issuers, transfer agents and DTC participants can use the service. Issuers and transfer agents apply for DRS eligibility   To request the movement of an asset through the DRS process, the requesting user is required to either participate in DTC's Surety program or provide proof of similar coverage from an approved surety provider to provide indemnification against false instructions.

Benefits

DRS:

• Provides accurate, quick and cost-efficient transfers between issuers or their transfer agents and broker/dealers
• Ensures secure electronic transfer
• Reduces the risk associated with physical securities processing of paper, including turnaround delays, mail losses and risks associated with stolen, forged or counterfeit securities
• Supports the industry's move to a dematerialized security environment and shortened settlement timeframes

How the Service Works

Through the DRS Profile system, an investor requests securities to be transferred to or from a broker/dealer and transfer agent. The request to transfer the securities is entered via the Participant Terminal System (PTS)/Participant Browser System (PBS)) or via the depository's file transfer protocol.  The user enters proprietary information about the registered account. including the customer's account number, account registration, share quantity, tax ID number, etc. A valid surety number must be submitted with the instructions from the initiating organization.
The receiving institution validates the information and responds with a corresponding deliver order through DRS.

For More Information

Please contact Relationship Management at 1.800.422-0582.