Automated Customer Account Transfer Service (ACATS)
Posted in Finance, Accounting and Economics Terms, Total Reads: 692
Definition: Automated Customer Account Transfer Service (ACATS)
Acats is an electronic system to transfer the securities from one trading account to other trading account. The transfer of assets can be made between two separate institution. The Acats is run by National securities clearing corporation and is owned by several major banks and financial institution. It manages plethora of securities transactions in the United States. It has replaced the earlier method of manually transferring the financial instruments wih an automated system. Various forms of assets such as stocks, option, bonds can be transferred by this system.
The customer willing to move the securities from one account to another can initiate the procedure by filling in an Transfer Initiation Form and sending them to the institution where they want to transfer their account. The receiving firm then communicated to the previous firm through Acats.
After the initial formalities where the customer information is matched and exchanged the delivering firm takes about 3 days to transfer the assets to the receiving firm. The whole process is called as delivery process. The total time taken to validate the process and actual transferring of assets takes about a week.
Acats can be used by NSCC recognized institutions and also by the Depository Trust Company member banks.