Automated Customer Account Transfer Service

Short description: Financial software

Automated Customer Account Transfer Service (ACATS) is an almost entirely electronic system in the United States that executes the transfer of financial securities from a trading account at one institution to the trading account at another. ACATS was developed by the National Securities Clearing Corporation (NSCC), now a subsidiary of Depository Trust & Clearing Corporation (DTCC), a private holding company owned collectively by banks and financial institutions that handles the settlement of the vast majority of securities transactions in the United States.[1]

In 2023, the Financial Industry Regulatory Authority (FINRA) issued new rules regarding ACATS because of concerns about an increase in ACATS fraud. In this type of fraud, the attacker steals a victim's identity, opens a new brokerage account in the victim's name, and issues an ACATS request to transfer securities from the victim's true brokerage account to the new one.[2]

## References

1. ↑ Joseph Nordqvist What is The Automated Customer Account Transfer Service Market Business News, Retrieved on September 10, 2014.
2. ↑ "FINRA Issues New Guidance on ACATS Fraud" (in en). 2023-05-01. https://lgwmlaw.com/news-media/FINRA-ISSUES-NEW-GUIDANCE-ON-ACATS-FRAUD/.

0.00

(0 votes)

Original source: https://en.wikipedia.org/wiki/Automated Customer Account Transfer Service. Read more

|

Retrieved from "https://handwiki.org/wiki/index.php?title=Software:Automated_Customer_Account_Transfer_Service&oldid=728449"