Direct Registration System
What Does Direct Registration System Mean?
A direct registration system (DRS) is a form of securities management that uses an electronic platform instead of paper-based transaction. With this system, owned securities do not have to go through a brokerage firm, and business can instead be done with a transfer agent.
Insuranceopedia Explains Direct Registration System
Someone who gets into securities using a direct registration system doesn't get a physical certificate of their stocks since transactions and receipts are done electronically, including proof of ownership.
The electronic storage of information makes it easy to find and retrieve documentation. This eliminates potential costs and wasted time dealing with lost paper certificates.