Automated Customer Account Transfer Service. ACATS automates and standardizes procedures for the transfer of assets in a customer account from one brokerage firm or bank to another. 

The ACATS-Fund/SERV Interface is a communications link that enables distributors and fund companies to transfer and re-register book-entry mutual fund assets in a controlled, automated environment.

The output software used by NSCC for all files transmitted externally.

The name of the broker/dealer related to the activity.

A unique four digit numeric identifier assigned by the NSCC for the firm.

Contingent Deferred Sales Charge (CDSC)

Also known as back-end load or reverse load. It is the amount charged by the distributor to recoup commission advanced to the firm/dealer when a client purchases a back-end load fund. The percentage charged is generally reduced by time on a sliding scale.

Note: Policies differ and should be verified in the fund prospectus.

Commission Settlement facilitates the exchange of mutual fund commission information between distributors and fund companies and streamlines, centralizes, and settles commission payments. 

Firm or Fund identified as the opposite party involved in the transaction.

Unique identifier for an issued security. CUSIP is an acronym for the Committee on Uniform Securities Identification Procedures, an inter-industry coding service.

Data Services Only (DSO)

Data Services Only is a NSCC membership category. A DSO member is an entity admitted under Rule 31 of NSCC's Rules for limited access to information (such as certain mutual fund and insurance services) which do not involve the settlement of funds through NSCC. 

The input software used by NSCC for receiving data from external sources.

Defined Contribution Clearance & Settlement.  DCC&S is an automated service that facilitates the processing of defined contribution mutual fund transactions including 401(k), 403(b) and other defined contribution retirement plans.  DCC&S leverages the existing technology infrastructure of Fund/SERV, Networking and Mutual Fund Profile Service. 

DTCC

Fund/SERV is a highly automated system that brings standardization to mutual fund transaction processing. Fund/SERV centralizes order entry, confirmation, registration and settlement of mutual fund transactions for mutual fund companies and distributors.

Fund/SPEED ^sm

Fund/SPEED is a dynamic, interactive service designed for broker/dealers, financial reps and planners to supports the real time exchange of account and order information between mutual fund companies and distributors. 

Global Update facilitates the exchange of representative and branch information between distributors and fund companies.  Distributors can provide mutual funds with global and individual update information that affects single and multiple accounts to accommodate changes in branch address, branch number or representative.

Money Settlement

DTCC’s Money Settlement System (MSS) allows participants who use NSCC’s trade clearance and settlement services to net all obligations into a single debit or credit position. MSS organizes and passes information to the Payment System, which sends validated instructions to banks to execute debits or credits to the accounts of participants. 

The MSS is Final Settlement Figure (net credit or debit amount) that will appear on the Participant Bill for that day. Each participant must ultimately settle on the Final Settlement Figures with the NSCC’s via their corresponding bank.

Multi-Batch Processing

Allows a member to send/receive multiple files within one processing cycle.

The Mutual Fund Profile Service improves the flow of information between firms in the mutual fund industry by bringing automation and standardization to the process of data exchange.  Acting as a central data repository, MFPS enables fund companies and distributors to exchange accurate and timely information on daily prices and dividend rates, distributor and fund members, individual security identifications, processing capabilities, and projected and actual distribution declarations. 

N.A.V.

Net Asset Value. The N.A.V. is the per share value of a mutual fund.

Networking is a centralized system through which all customer account level activity - other than order processing - can be exchanged between mutual fund companies and their distribution partners.  This automated system allows identical information to appear on the records of both the distributor and the mutual fund company or its transfer agent.   

National Securities Clearing Corporation (NSCC), a subsidiary of The Depository Trust & Clearing Corporation, is a central counterparty and leading provider of centralized post-trade comparison, trade guarantee, netting, settlement and information services for equities, bonds, unit investment trusts, mutual funds and insurance transactions.

PCWeb Direct is the data-entry and communications service that allows users to directly access NSCC’s services over the Internet.

SFTI ^SM

The Secure Financial Transaction Infrastructure (SFTI) is SIAC’s communications network.

As a general term, service bureaus are vendors providing transaction processing services to the financial industry.

Securities Industry Automation Corporation. SIAC provides automated clearance and settlement systems support for NSCC.

Securely Managed and Reliable Technology.  DTCC’s SMART network is a centralized communications infrastructure that provides customers with end-to-end connectivity support for all post-trade clearance, settlement and information-based services.

SYS-ID Number

The system identification number used within SIAC’s DataTrak System to route member input files appropriately.

Third Party Administrator (TPA)

A TPA is a firm that handles the record- keeping and other administrative services for employers that sponsor defined contribution retirement plans.

Transfer of Retirement Assets. (ToRA) is an automated, centralized system that enables mutual fund companies to jointly initiate, acknowledge, confirm and settle the transfer of the value of mutual fund shares held in Individual Retirement Accounts (IRAs).

Transfer Agent (TA)

An organization employed by a mutual fund to prepare and maintain records relating to shareholder accounts.