July/August 2025: ACATS settle prep removal

The removal of settle prep (NSCC status 300) from the ACATS process will reduce the timeline of full transfers by one business day. That means that most full transfers will complete in three business days or less. With acceleration, all full and partial transfers can be completed in two business days, even if they include options or mutual funds.

This also means that mutual fund companies will now have only one business day to process fund registrations instead of two. However, this shouldn’t be an issue for the industry because 98% of mutual fund responses come within the first day of the two-day period already.

These changes are scheduled to happen in the PSE/Test environment on July 25, 2025 and in Production on August 29, 2025.

For more detailed information, we recommend starting with DTCC’s important notice here.

October 2025: Transition to ACATS JSON messages

DTCC is retiring the legacy variable and fixed file formats in favor of a new JSON-based messaging system for ACATS. The new JSON messages are accessible via API and MQ protocols for inbound transfers and MQ for outbound transfers. These messages cannot be processed through the legacy file-based protocols (SFTP and NDM).

The new system offers some immediate benefits like real-time system rejects and the ability to transfer 529 plans; the transition also serves a broader purpose. JSON messages provide a foundation for more real-time ACATS processing, which would be impractical to build on file-based systems. Though not yet scheduled, this future modernization of ACATS toward a broad use of real-time messaging is expected around 2027 or later.

Currently, about 5 firms are using the new JSON messages in production, and approximately 50 firms have begun testing. With DTCC recommending a phased rollout approach to ensure a smooth transition, firms that haven't started testing yet should begin doing so very soon.

For more detailed information, we recommend starting with DTCC’s important notice here.

November 2025: DWAC and DRS system changes

In November 2025, DTCC will retire the batch files for both DWAC and DRS transactions. Firms processing DRS and/or DWAC transactions outside the portal will need to transition to the new APIs, which enable near real-time processing. Even if firms process DWAC and/or DRS transactions on the legacy portal, they will need to transition to the Securities Processing Application (SPA) portal.

For more detailed information, we recommend starting with DTCC’s important notice here.

Let us help you prepare

These modernization initiatives are all mandatory and converging in the second half of 2025. With changes to settle prep timing, ACATS messaging, and DWAC/DRS processing all happening in parallel, careful coordination will be essential to ensure you don't miss any deadlines.

Even if you're using a third-party service provider for transfers, we strongly recommend checking in with them now to ensure they're proactively preparing for these changes. While they may be the ones handling these technical changes, you're ultimately responsible for compliance, so it's crucial to gain comfort that they're on track with their implementation plans.

We understand that managing these changes alongside other priorities can be challenging, especially with limited resources. Our team is dedicated to helping the industry navigate these modernization efforts successfully. Whether you need implementation support or just want to discuss your approach, we're here to ensure no firm gets left behind.