Direct Registration System

What Does Direct Registration System Mean?

A direct registration system (DRS) is a method of securities management that utilizes an electronic platform instead of relying on paper-based transactions. With this system, owned securities do not need to pass through a brokerage firm; instead, transactions can be conducted directly with a transfer agent.

Insuranceopedia Explains Direct Registration System

Individuals who invest in securities through a direct registration system do not receive physical certificates for their stocks, as transactions and receipts are handled electronically, including proof of ownership.

The electronic storage of information facilitates easy access and retrieval of documentation, eliminating potential costs and saving time associated with lost paper certificates.