DRS vs. DWAC

Worldwide Stock Transfer is a part of Depository Trust Corporations (DTC) Fast Automated Securities Transfer system (FAST), which enables us to electronically transfer shares via Cede & Co. (DTC’s nominee name) to participating broker/dealers, rather than process paper certificates.

• DWAC usually refers to new or certificated paper shares to be electronically transferred.
• DRS shares are already issued and held electronically in book-entry format at the transfer agent.

Method One
Debit Withdrawal at Custodian (DWAC) - An electronic method of transferring shares on the books of the transfer agent between participating broker/dealers using the Depository Trust Company’s (DTC) Fast Automated Securities Transfer system (FAST) with the transfer agent serving as a custodian.

Example 1: An issuer/company can instruct the transfer agent to directly issue unrestricted shares to a holders brokerage account electronically via DTC. The broker/dealer must initiate the transaction using the FAST system and the issuer must provide written instructions.

Example 2: A shareholder can send us his/her un-restricted certificated shares, along with written instructions and an executed stock power form to be electronically sent directly to his/her broker. Again, the broker/dealer must initiate the transaction via the FAST system.

Method Two
Direct Registration System (DRS) - Is an electronic system for registering stock with an issuers/company’s transfer agent. These shares are in electronic book-entry format, and can be transferred to and from a brokerage account. Written instructions are required, however, no executed stock power form is needed, due to the fact there is an automatic indemnification between the transfer agent & DTC.

Example 1: A shareholder can have their un-restricted book-entry shares held at the transfer agent sent directly to his/her broker. Because the shares are already in bookentry form on the records at the transfer agent from previous issuance instructions, no stock executed stock power is need to send the shares using the DRS profile system.