ACATS-Fund/SERV Interface

The ACATS-Fund/SERV Interface electronically links two of NSCC's services, ACATS and Fund/SERV. Through this interface, mutual funds can electronically update their account registrations when a customer's Mutual Fund account is transferred from one broker to another.
Automated Customer Account Transfer Service

Accounting Cycle

The Accounting Cycle is the period of time during which transactions are recorded and reported. The cycle could be daily, weekly, monthly, quarterly, or annually. Different categories of accounts are typically reviewed after different periods of time.

Accretion

Accretion is the increase in the value of a bond that occurs steadily from the time it was purchased at a discount until it is redeemed at the Market Value or matures at Face Value.
Market Value, Face Value

Accrual

In accounting, an Accrual is a method for recognizing an expense in the period in which is was incurred. For bonds, interest is accrued daily from the latest interest payment until the bond is sold, matures, is redeemed or reaches its next payment date. Interest accrues at the coupon rate of the bond.

Accrued Interest

Accrued Interest is the amount of unpaid interest that has accumulated on a fixed income instrument since the last interest payment was made.
- When a bond is sold, the buyer of the bond pays the market price plus the accrued interest to the seller.
- When certain types of customer statements are prepared, accrued interest is also reported.
Accrual

ACK

An ACK is an abbreviation for a positive acknowledgment, sent by S.W.I.F.T. to the sender of a message. It indicates S.W.I.F.T.'s acceptance of a message for onward transmission to addressee. An ACK does not indicate that the message has been received by the addressee.
NACK, NCK

Active Account

An Active Account is one in which securities are bought and sold frequently.

Active Management

An account is Actively Managed when an investment manager tries to obtain the highest possible return relative to a market index, typically by buying and selling frequently.
Passive Management

Active Market

An Active Market occurs when there is a high volume of buying and selling of securities.

Actual Price

The Actual Price is the price at which a transaction that transfers ownership is completed.

Add by Seller

An Add by Seller form is submitted by the selling firm on trade date plus two (T+2) to the NSCC to enter trades that were not previously submitted for comparison.