Settling Locations and Reasons

To bypass ACATS assigning a settling location and reason to a specific asset, a firm should populate the settling location and reason fields with code 50 XSET. This code instructs ACATS to settle that asset outside its default settling location. An exception to this rule is when the asset is eligible to settle as non-CNS DTC (8902 Eligible). In this case, ACATS overrides 50 XSET with 05 DTC.

Note

A firm can use the combination of Settling Location and Reason 50 XSET to override the ACATS Auto-DO feature. When a firm who uses the auto-DO feature submits a DTC-eligible asset with the Settling Location and Reason code of 50 XSET, ACATS does not automatically create the DO to DTC.

The following table shows how ACATS derives settling locations for each asset in a transfer.

Settling Locations
Code	Settling Location	Reason	Comments
00	System Generated	Not applicable	ACATS system chooses the settlement location based on the eligibility of the receiver, deliverer, and asset.
05	CNS DTC	blank DTC Eligible only
10	Fund/SERV	Not applicable
25	DTC	Not applicable
30	Undeliverable	blank NTRN–6-year (PREMed) Non-Transferable	ACATS overrides this code for a broker-to-broker transfer when it is possible to use an alternative settling location unless the asset is an annuity (ANNU). ACATS does not apply incentive charges to assets assigned this settlement location.
35	OCC	EXPO–Expiring Option OPT–Option USEC–Underlying Security	This settling location and reason cannot be changed to or from another settling location. However, settling reason codes can be changed within this location. Note: When a firm submits an option asset with a settling location and reason of 35 EXPO or 35 USEC, ACATS reports the option only for informational purposes. ACATS does not send assets with these settling reasons to the Options Clearing Corporation (OCC) for processing. ACATS does not apply incentive charges to assets assigned this settlement location.
40	Cash Balance	CRED–Credit balance DEB–Debit balance	This settling location and reason cannot be changed to or from another settling location and reason.
45	Memo	90DR–90-Day Restriction (expiration date required) CASH–Underlying Cash Balance COMT–Comment REGT–REG T Calls (create date and amount required) SMA–Special Misc Account Value USEC–Underlying Security	This settling location cannot be changed to or from another settling location. However, settling reason codes can be changed within this location. ACATS does not apply incentive charges to assets assigned this settlement location.
50	R&D	DDEL–Delayed Delivery FCUR–Foreign Currency NSET–System Derived Initial Public Offering RSEC–Restricted Security SFK–Safekeeping XSET–Outside CNS, DTC, Fund/SERV	For RSEC, SFK, and FCUR, ACATS does not validate or override the settling location. For XSET, ACATS overrides the settling location for a broker-to-broker transfer when this asset is eligible for location 05 DTC. For DDEL, ACATS overrides the settling location for a broker-to-broker transfer when it is possible to use an alternative settling location.
55	Foreign (receivers and deliverers)	Not applicable	ACATS does not derive this settling location: the deliverer must submit settlement location 55 for foreign securities and complete required fields on the foreign asset extension record. An ISIN number is eligible for this settling location if it has a country code NOT equal to US. Both the receiver and deliverer must be eligible for location 55; otherwise, ACATS changes this settling location to 50 (NSET).
60	IPS (Insurance Processing Service)	Not applicable	ACATS does not apply incentive charges to assets assigned this settlement location.
65	Insurance Memo	RIPS – Receiver Not Eligible for IPS NIPS – Receiver and ISIN Not Eligible for IPS XIPS – ISIN Not Eligible for IPS NOIR – Insurance Registration Not Received	ACATS changes the settling location to 65 from 60 if: CUSIP, receiving firm, or both are ineligible for the ACATS Insurance Interface. ACATS has not received an insurance registration (IR) record by the end of the ACATS review period. ACATS does not apply incentive charges to assets assigned this settlement location.