The Depository Trust Company has proposed replacing legacy direct-registration channels with a portal, API and message-queue workflow that tracks each transfer and creates the delivery instruction automatically after agent approval. The intended benefit for brokers is less manual processing and a clearer record of where a transfer has reached.[2]
DTC filed SR-DTC-2026-012 on 29 September. The SEC issued notice on 30 September and Federal Register publication followed on 5 October, setting a 21-day comment period ending on 26 October. Implementation is targeted for 13 November, subject to SEC approval and readiness; if that date is missed, DTC says it will implement by January 2027 and announce the date in an Important Notice.[1][2]
From instruction to delivery
From legacy channels to a tracked workflow
| Stage | Legacy position | Proposed position |
|---|---|---|
| Instruction entry | PTS/PBS interface or CCF batch file. | SPA portal, API or message-queue instruction.Source 2 |
| Agent review | Transfer agent processes the profile request through existing channels. | DRS agent reviews and approves or rejects the request in the modern workflow.Source 2 |
| Delivery to DTC participant | Separate legacy processing steps. | Approval triggers an automatic DRS Deliver Order.Source 2 |
| Status visibility | Fragmented channel feedback. | Defined transaction statuses in SPA plus an audit trail.Source 2 |
| Automation | Batch-oriented exchange. | Firms may automate input and output through API or MQ connectivity.Source 2 |
DRS connects two holding structures: an investor’s direct entry on the issuer transfer agent’s register, and a broker holding through DTC’s nominee, Cede & Co. For a Profile Deposit Request into DTC, the participant submits the instruction and the agent approves it. The new system would then create the Deliver Order; a rejection would carry a reason and a recorded status change.[2]
The reverse direction has its own initiation rule. A DRS Withdrawal by Transfer starts with the DTC participant and, after agent approval, moves shares from the participant’s free position into the investor’s name at the agent. An investor seeking that move therefore requests it through the broker.[2]
Fee collection joins the processing workflow
How proposed DRS billing would work
| Component | Treatment |
|---|---|
| Agent processing fee | Set by the DRS agent; DTC would collect the applicable pass-through amount from the participant.Source 2 |
| DTC collection charge | For applicable DRS deposits, 5% of the amount collected is retained by DTC before the balance is remitted to the agent.Source 2 |
| Profile Surety | Existing requirement remains for Profile Deposit Requests; it supports the participant’s indemnity about authority, consent and accurate information.Source 2 |
As an illustration, if an applicable agent fee is US$100, DTC would collect US$100 from the participant, retain US$5 and remit US$95 to the agent. The 5% is a deduction from that collection. A broker’s separate customer transfer tariff would still determine what its investor pays.[2]
DTC’s aim is to compress processing from days to minutes when the required data and approvals are available. Security eligibility, matching registration details and exception handling remain the practical determinants of completion. The new status history is useful precisely because a broker can identify and resolve a rejected or stalled instruction instead of reconstructing the transfer across separate legacy channels.[2][3]
Sources & further reading
- Notice of filing to modernize the Direct Registration System US Securities and Exchange Commission · 30 Sep 2026 · Accessed 16 Oct 2026
- Federal Register notice for SR-DTC-2026-012 US Government Publishing Office · 5 Oct 2026 · Accessed 16 Oct 2026
- DTC rules, procedures and service guides DTCC · Accessed 16 Oct 2026