In response to events relating to the close-out of Lehman Brothers in 2008, NSCC and DTC have been engaged with the industry in a series of initiatives designed to improve the efficiency and reduce risks associated with transactions processed through NSCC’s Automated Customer Accounts Transfer service (“ACATS”). Previous initiatives focused on CNS-eligible and mutual fund ACATS obligations.

As a next step in this series of initiatives, a new ACATS settlement process has been developed for enhanced efficiency and risk reduction for ACATS transfers of CNS-eligible securities and assets that are eligible for settlement at DTC, but not in CNS (“non-CNS DTC-eligible assets”).

The changes address processing and risk-related concerns with respect to ACATS processing of CNS-eligible securities and non-CNS DTC-eligible assets:

  • First, this initiative creates functionality for NSCC to track non-CNS DTC-eligible ACATS obligations on ACATS settlement date and reverse only those uncompleted transactions of the defaulting Member in the event of a default. Previous initiatives focused on reversals of CNS-eligible and mutual fund ACATS obligations.
  • Second, the proposed modifications allow NSCC to track CNS ACATS transactions in case of multiple Member defaults on ACATS settlement date.
  • Third, revised processing ensures that non-CNS DTC-eligible items are credited to a no lien location, in the same way that CNS eligible items are.

The project completed migration to production in June 2014.

To learn more about the ACATS Settlement Process for CNS and DTC eligible assets, please see the ACATS User Guide under the Documents tab in the ACATS section of the Learning Center.


No. The changes associated with this project are not optional. If your firm is an ACATS participating broker-dealer, you will have to make these changes.


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