Differentiator	Traditional Approach	ACATS Approach
Transfer Processing	Manual forms, fax-based submissions	BPM-orchestrated workflow with NSCC integration
Validation	Manual data comparison across systems	Automated validation with automated exception routing
Margin Monitoring	End-of-day batch calculations	Real-time equity monitoring with automated notifications
Compliance	Periodic audits, manual evidence gathering	Continuous compliance with embedded audit trails
Exceptions	Manual escalation via email and phone	Automated exception detection with SLA-driven resolution
Visibility	Delayed status updates, client inquiries	Real-time transfer tracking and margin status dashboards

Executive Summary

The Problem We Solve

Current state challenges in brokerage account transfers and margin management

Manual Transfer Processing

Average transfer takes 6-8 business days instead of 4-day target; 15-25% rejection rate on first submission due to ad hoc processing across disconnected systems.

Reactive Margin Management

End-of-day batch calculations miss intraday breaches, increasing firm risk exposure and causing suboptimal liquidation timing.

Compliance Evidence Gaps

Fragmented audit trails across email and spreadsheets require weeks of manual evidence gathering for FINRA examinations.

Exception Handling Chaos

Non-transferable assets and form errors are handled via email and phone, accounting for 40% of operational time with unpredictable resolution.

Client Communication Delays

Clients call repeatedly for transfer status; advisors lack real-time visibility, resulting in satisfaction scores below 60%.

Cross-Firm Coordination Failures

Asset list discrepancies and missed deadlines cause transfers to be purged and restarted, extending timelines.

Market Position

Competitive Positioning

ACATS platform vs. existing market solutions

Competitor	Transfer Automation	Compliance Integration	Key Gap
Broadridge	High (legacy)	Medium	Limited BPM orchestration, batch-oriented
FIS	Medium	High	Monolithic architecture, slow innovation
SS&C	Medium	Medium	Complex integration, high customization cost
Pershing (BNY)	High	High	Clearing-firm focus, limited retail access
Legacy In-House	Low	Low	Manual processes, audit trail gaps
Fintech Point Solutions	Medium	Low	Lack regulatory depth, narrow scope
ACATS Platform	High	High	BPM-native, compliance-embedded, open-source foundation

Market Position

Market Opportunity

TAM, SAM, and SOM projections with key market trends

Market Sizing

$15.7B

Total Addressable Market (TAM) - Wealth Tech

$1.2B

Serviceable Addressable Market (SAM) - Transfer Ops

$108M

Serviceable Obtainable Market (SOM) - Year 5 Target

Target Segments

Large Broker-Dealers: 50+ firms, $500K-$2M ARR each
Regional Broker-Dealers: 200+ firms, $100K-$400K ARR each
RIA Custodians: 20+ platforms, $300K-$800K ARR each
Clearing Firms: 15+ firms, $800K-$1.5M ARR each

Key Market Trends

T+1 Settlement: May 2024 mandate driving automation
FINRA Examination Intensity: Increased focus on transfer compliance
Advisor Portability: Record FA movement driving transfer volumes

Success Criteria

Success Metrics & KPIs

Four metric categories tracking platform effectiveness

Efficiency Metrics

Processing Time: 60% reduction (6-8 days → 4 days)
Manual Touchpoints: 75% reduction
Exception Resolution: Same-day target (vs. 2-3 days)

Quality Metrics

First-Pass Rejection Rate: 15-25% → <5%
Straight-Through Processing: 30-40% → >75%
Data Accuracy: >99.5% validation accuracy

Client Experience

Client Satisfaction: <60% → >85%
Status Inquiry Volume: 70% reduction
Advisor Visibility: Real-time vs. delayed

Business Impact

Cost per Transfer: $150-250 → <$75
Audit Prep Time: Weeks → Minutes
Compliance Findings: 50% reduction

Target Users

User Personas

4 primary personas driving platform requirements

Maria Santos

Operations Analyst | Transfer Operations

Goals: Process transfers efficiently, minimize exceptions, meet SLAs

Pain Points: Manual data entry, unclear asset list discrepancies, lack of real-time status

James Chen

Risk Analyst | Compliance & Risk

Goals: Ensure regulatory compliance, produce audit evidence, monitor margin exposure

Pain Points: Evidence scattered across systems, manual report generation, delayed breach detection

Sarah Williams

Financial Advisor | Client Services

Goals: Onboard clients quickly, provide status updates, resolve issues proactively

Pain Points: No visibility into transfer status, client complaints, manual follow-ups

David Park

Chief Compliance Officer | Executive

Goals: Pass FINRA examinations, reduce compliance risk, demonstrate controls

Pain Points: Incomplete audit trails, manual evidence gathering, regulatory uncertainty

The Process

End-to-End Process Overview

From client initiation to post-transfer reconciliation across 8 organizational roles

What This Models

The ACATS platform models a hypothetical Tier 1 institution to demonstrate scale capabilities. This includes 250,000+ employees, 5,000+ branches processing account transfers through:

Multiple intake channels (Branch, Call Center, Digital, Advisor)
Full NSCC ACATS protocol enforcement
Quality gates at every transition
Recursive remediation loops for incomplete information
Compliance and privacy controls at every handoff
Real-time margin monitoring integration

Key Process Characteristics

6

Transfer Phases (T1-T6)

7

Quality Gates (QG-0 to QG-6)

4

Business Days Target*

100%

Audit Trail Coverage

The Process

Swim Lane Architecture

8 distinct organizational roles across the transfer lifecycle

Lane	Actor	Primary Responsibilities
1	Client/Account Holder	Initiates request, provides documentation, responds to info requests
2	Intake Channel	Captures request, performs KYC/AML, collects TIF data
3	Financial Advisor	Reviews complexity, advises on non-transferables, manages communication
4	Transfer Operations	Validates TIF, submits to NSCC, handles exceptions, reconciles
5	Compliance & Risk	KYC/AML verification, privacy controls, regulatory enforcement
6	Contra Firm (Delivering)	Validates ownership, compiles asset list, freezes account, settles
7	NSCC/DTCC	Assigns control numbers, routes messages, enforces timing, manages purge
8	Settlement & Custody	Executes DTC transfers, processes fund re-registration, wire transfers

The Process

Intake Channels

4 distinct entry points for transfer initiation

Channel	Actor	Data Capture Method	KYC/AML Trigger	Typical Volume
Branch Walk-In	Branch Associate	Paper TIF scanned into imaging system	In-person ID verification	25% of transfers
Call Center	Service Representative	Phone interview, verbal TIF completion	Voice biometric + security questions	30% of transfers
Digital Self-Service	Client (unassisted)	Web form with document upload	Multi-factor authentication + identity verification	20% of transfers
Advisor-Initiated	Financial Advisor	Advisor platform with bulk capabilities	Client consent + advisor attestation	25% of transfers

Quality Gate QG-0: Intake Validation

Pass Criteria: TIF complete, KYC/AML passed, account ownership verified, delivering firm identified

Fail Action: Recursive remediation loop to client/advisor for missing information

Common Intake Failures

Missing account number at delivering firm
Incomplete TIF (no signature/date)
Client identity mismatch
Account type unclear (cash vs. margin)

The Process

Quality Gate QG-0: Intake Validation

First checkpoint before transfer enters operations workflow

Validation Check	Pass Criteria	Fail Consequence	Responsible Actor
TIF Completeness	All required fields populated, signature present	Return to intake channel for completion	Transfer Operations
Client Identity	KYC/AML passed, matches delivering firm records	Compliance escalation, possible rejection	Compliance & Risk
Account Ownership	Client is registered owner at delivering firm	Client notified, TIF correction required	Transfer Operations
Delivering Firm Identification	Valid DTC number, firm is NSCC participant	Advisor assists client in identifying correct firm	Financial Advisor
Transfer Type	Full or Partial specified, asset list if partial	Client contacted for clarification	Transfer Operations
Privacy Compliance	SSN/TIN redacted in non-secure channels	Document imaging retake, secure transmission	Compliance & Risk

The Process

ACATS Transfer Lifecycle

6 phases from initiation to post-transfer reconciliation

T1: Initiation

Client request captured via intake channel, TIF completed, QG-0 passed, submitted to NSCC

T2: Validation

Delivering firm validates ownership, QG-1 passed, asset list compiled and transmitted

T3: Review

Receiving firm reviews asset list, identifies non-transferables, QG-2 resolves discrepancies

T4: Settlement Prep

Account freeze at delivering firm, settlement instructions to DTC/Fund/SERV, QG-3 confirms readiness

T5: Settlement

DTC book-entry transfer, fund re-registration, wire transfers executed, QG-4 confirms receipt

T6: Post-Transfer

Reconciliation, residual forwarding, client notification, QG-5 closes transfer, audit trail sealed

The Process

Quality Gates Framework

7 quality gates (QG-0 through QG-6) ensure compliance and completeness at every transition

Gate	Position	Pass Criteria	Fail Action
QG-0	Intake → T1 (Initiation)	TIF complete, KYC passed, ownership verified	Return to intake for remediation
QG-1	T1 → T2 (Validation)	NSCC submission successful, control number assigned	Technical escalation, resubmit
QG-2	T2 → T3 (Review)	Asset list received, no fatal discrepancies	Delivering firm contact, discrepancy resolution
QG-3	T3 → T4 (Settlement Prep)	Non-transferables resolved, settlement instructions ready	Client notification, alternative handling
QG-4	T4 → T5 (Settlement)	Account frozen, DTC/Fund/SERV ready to settle	Settlement delay, manual intervention
QG-5	T5 → T6 (Post-Transfer)	Assets received, quantities match, no settlement failures	Reconciliation investigation, contra firm escalation
QG-6	T6 → Close	Residuals forwarded, client notified, audit trail complete	Manual follow-up, compliance review

The Process

Recursive Subprocesses

The Information Remediation Loop and 5 subprocess types

Information Remediation Loop

When a quality gate fails due to missing or incorrect information, the transfer enters a recursive remediation subprocess that:

Notifies the responsible actor (client, advisor, ops, compliance)
Creates a task with SLA deadline
Tracks remediation attempts
Re-validates against the same gate
Escalates if SLA is breached or max attempts reached
Purges transfer if unresolved by Day 6

5 Subprocess Types

Type	Trigger	SLA
TIF Correction	QG-0 fail: incomplete form	24 hours
Identity Verification	QG-0 fail: KYC/AML block	48 hours
Asset List Dispute	QG-2 fail: discrepancy	2 business days
Non-Transferable Handling	QG-3 fail: cannot transfer asset	1 business day
Settlement Failure Recovery	QG-5 fail: DTC reject	Same day

The Process

Compliance & Privacy Controls

PII protection and regulatory checkpoints embedded at every handoff

PII Protection Controls

Data Element	Protection Method
SSN/TIN	Tokenized, never stored in clear
Account Numbers	Masked in UI, encrypted at rest
Client Names	Access-controlled, audit logged
Position Data	Encrypted, role-based access
Documents (TIF)	Secure imaging, redaction required

Regulatory Checkpoints

Regulation	Checkpoint
FINRA Rule 11870	3-day validation, 6-day purge timer
FINRA Rule 4210	Margin adequacy check at intake
Reg T (Fed Reserve)	50% initial margin enforcement
Reg U (Fed Reserve)	SBLOC purpose verification
SEC Books & Records	7-year audit trail retention

Scenarios

5 Demo Scenarios

Realistic transfer situations from happy path to complex failures

Scenario 1: Happy Path

Margaret Chen - Advisor-initiated full transfer from Merrill Lynch, all gates pass, 4-day completion ($642K)

Scenario 2: Multi-Gate Failure

Robert Williams - Branch walk-in (Midtown Manhattan) with missing account #, proprietary fund, IRA docs, Fund/SERV re-registration ($1.24M)

Scenario 3: Margin + Options

David & Sarah Park - Call center (1-800) with SSN tokenization, margin, options, and proprietary fund issues ($1.24M net equity)

Scenario 4: Partial Transfer

Jennifer Walsh - Digital (JPMC mobile) with LP abandonment, client non-response, Fund/SERV re-registration ($614K)

Scenario 5: The Purge

Thomas Andersen - Trust account (Private Bank) with title mismatch, hedge fund feeders, 6-day purge, restart as partial ($5.82M)

Scenario 1

Happy Path - Margaret Chen

Advisor-initiated full transfer, all gates pass, 4-day completion

Client Profile

Name: Margaret Chen (SSN: XXX-XX-4521)
Age: 52, Senior Marketing Executive
Account Type: Individual Taxable Brokerage
Total Assets: $642,310
Intake Channel: Advisor-Initiated
Transfer Type: Full Transfer
Delivering Firm: Merrill Lynch

Asset Breakdown

AAPL: $93,660
MSFT: $123,750
VTI: $321,780
BND: $57,920
Cash: $45,200

Process Flow Timeline

Day	Event	Gate
0 (Mon)	Advisor initiates, TIF complete, KYC passed	QG-0 Pass
0 (Mon)	Ops submits to NSCC, control #12345	QG-1 Pass
1 (Tue)	Merrill Lynch validates, sends asset list	QG-2 Pass
2 (Wed)	No non-transferables, settle instructions sent	QG-3 Pass
3 (Thu)	Account frozen, DTC settlement scheduled	QG-4 Pass
4 (Fri)	Assets received, reconciled, client notified	QG-5 Pass

Scenario 2

Multi-Gate Failure - Robert Williams

Branch walk-in (Midtown Manhattan) with multiple issues, multi-gate failure narrative

Client Profile

Name: Robert Williams
Age: 67, Retired Engineer
Account Type: Traditional IRA
Total Assets: $1,244,560
Intake Channel: Branch Walk-In (Midtown Manhattan)
Transfer Type: Full Transfer
Delivering Firm: Edward Jones

Asset Breakdown

VFIAX (Vanguard 500 Index): $412,300
PIMIX (PIMCO Income): $287,150
XOM: $145,800
JNJ: $189,400
Edward Jones Money Market: $185,910
Cash: $24,000

Problems Encountered

Missing account number at delivering firm
Edward Jones Money Market is proprietary (non-ACATS-eligible)
IRA custodial documentation incomplete
VFIAX requires Fund/SERV re-registration

Multi-Gate Failure Timeline

Day	Event	Gate
0 (Mon)	Branch TIF scan, QG-0 FAIL: missing account #	QG-0
1 (Tue)	Client provides statement, QG-0 PASS	QG-0
1 (Tue)	NSCC submission, QG-1 FAIL: IRA custodial docs	QG-1
2 (Wed)	Edward Jones sends corrected docs, QG-1 PASS	QG-1
2 (Wed)	QG-2 FAIL: EJ Money Market non-transferable	QG-2
3 (Thu)	Client opts to liquidate EJ MM, QG-2 PASS	QG-2
4 (Fri)	QG-4 PASS, Fund/SERV re-registration for VFIAX	QG-4
5 (Mon)	Transfer complete, 5-day total	QG-5

Key Demonstration

Shows multi-gate failure handling: QG-0, QG-1, QG-2, QG-4 all encountered issues. BPM orchestrates remediation, proprietary fund handling, and Fund/SERV re-registration.

Scenario 3

Margin Account Challenge - David & Sarah Park

Call center intake (David calls 1-800) with complex margin, options, and proprietary fund issues

Client Profile

Names: David & Sarah Park
Ages: 44 & 41, Dual income professionals
Account Type: Joint Margin Account
Net Equity: $1,240,500
Margin Debit: $180,000 outstanding
Intake Channel: Call Center (David calls 1-800)
Transfer Type: Full Transfer
Delivering Firm: UBS Financial Services

Asset Breakdown

NVDA: $312,400 (covered calls)
AMZN: $287,600
GOOGL: $245,300
TSLA: $198,200
UBS Select Bond Fund: $312,000 (proprietary)
Options positions: various
Margin debit: -$180,000

SSN Privacy Handling

Secure IVR tokenization subprocess captures SSN without agent exposure. Token stored encrypted, validated against delivering firm records.

Multi-Gate Resolution

Day	Event	Gate
0	David calls, QG-0 FAIL: SSN + Sarah's sig missing	QG-0
1	Sarah signs, SSN via IVR, QG-0 PASS	QG-0
1	QG-1 FAIL: margin + options + proprietary fund	QG-1
2	Advisor: liquidate UBS fund, close options	-
2	QG-1 PASS after asset adjustments	QG-1
3	QG-3 FAIL: NVDA covered call strike mismatch	QG-3
3	Options desk resolves strike, QG-3 PASS	QG-3
4	Margin calc: 14.5% (PASS 25% threshold)	QG-4
5	Settlement complete, margin monitoring active	QG-5

Key Demonstration

Shows SSN tokenization, margin account handling, options position management, and proprietary fund liquidation requirements.

Scenario 4

Partial Transfer - Jennifer Walsh

Digital self-service (JPMC mobile app) with LP abandonment and Fund/SERV re-registration

Client Profile

Name: Jennifer Walsh
Age: 38, Business Owner
Account Type: Individual Taxable
Total Assets: $614,370
Transfer Request: Partial (exclude LP)
Intake Channel: Digital Self-Service (JPMC mobile app)
Transfer Type: Partial Transfer
Delivering Firm: Charles Schwab

Asset Breakdown

SWPPX (Schwab S&P 500 Index): $187,200
SWISX (Schwab Int'l Index): $124,800
VOO: $98,400
QQQ: $76,300
LP Interest: $75,000 (non-transferable)
SWVXX (Schwab Money Market): $32,670
Cash: $20,000

Fund/SERV Re-registration

SWPPX and SWISX require Fund/SERV re-registration as Schwab proprietary funds transferring to JPMC custody.

Process Flow with Abandonment

Day	Event	Gate
0	Client initiates via mobile, selects assets	QG-0 Pass
1	NSCC submission, partial transfer flag	QG-1 Pass
2	Schwab sends full list, LP flagged	QG-2
2	System notifies: LP non-transferable, confirm abandon?	-
2-4	Client non-response (2 days)	WAIT
4	Advisor outreach, client responds day 3	-
4	Client confirms LP abandonment, QG-2 PASS	QG-2
5	DTC settles equities, Fund/SERV for SWPPX/SWISX	QG-4
6	Transfer complete, LP remains at Schwab	QG-5

Key Demonstration

Shows client non-response handling, advisor outreach subprocess, LP abandonment confirmation, and Fund/SERV re-registration for proprietary funds.

Scenario 5

The Purge - Thomas Andersen

Branch (JPMC Private Bank, Advisor-initiated) with trust title mismatch, hedge fund feeders, and purge cascade

Client Profile

Name: Thomas Andersen (Andersen Family Trust)
Account Type: Trust Account
Total Assets: $5,820,000
Intake Channel: Branch (JPMC Private Bank, Advisor-initiated)
Transfer Type: Full Transfer
Delivering Firm: Morgan Stanley

Asset Breakdown

42 equity positions: $3,200,000
12 bond positions: $1,800,000
Hedge Fund Feeder A: $250,000 (non-ACATS)
Hedge Fund Feeder B: $250,000 (non-ACATS)
Cash: $320,000

Problems Encountered

Trust title mismatch (QG-2)
Hedge fund feeders non-ACATS-eligible (QG-3)
Trustee unreachable for signature (QG-2)

Purge Cascade Timeline

Day	Event	Gate
0 (Mon)	Advisor initiates, TIF complete, KYC passed	QG-0 Pass
1 (Tue)	NSCC submission, control # assigned	QG-1 Pass
2 (Wed)	QG-2 FAIL: Trust title mismatch with MS records	QG-2
3 (Thu)	QG-3 FAIL: Hedge fund feeders non-ACATS	QG-3
4 (Fri)	Trustee unreachable, title correction pending	-
5 (Mon)	Escalation: still awaiting trustee signature	-
6 (Tue)	PURGE TIMER EXPIRES - Transfer terminated	PURGE
7 (Wed)	Restart as PARTIAL (exclude hedge fund feeders)	-
11 (Mon)	Partial transfer completes (Day 4 of restart)	QG-5

Key Demonstration

Shows FINRA Rule 11870's 6-business-day purge timer, trust account complexity, non-ACATS-eligible hedge fund feeder handling, and restart-as-partial recovery strategy.

Scenarios

Scenario Value Summary

Capabilities demonstrated and business value delivered by each scenario

Scenario	Key Capabilities	Business Value
1. Margaret Chen	Happy path, advisor-initiated, all gates pass	4-day STP, baseline efficiency target demonstrated
2. Robert Williams	Multi-gate failure, proprietary fund, Fund/SERV	Automated remediation reduces ops burden by 60%
3. David & Sarah Park	SSN tokenization, margin, options, call center	Privacy compliance, margin risk visibility
4. Jennifer Walsh	Partial transfer, LP abandonment, client non-response	Automated advisor outreach, Fund/SERV re-registration
5. Thomas Andersen	Trust, hedge funds, purge cascade, restart-as-partial	Regulatory compliance (FINRA 11870), complex account handling

5

Scenarios Covering 90% of Transfer Types

15+

Quality Gate Failures Demonstrated

100%

Audit Trail Coverage

BPM Simulation

BPMN Process Definitions

9 BPMN process models orchestrating the complete ACATS lifecycle

Process File	Purpose	Key Subprocesses
transfer-intake.bpmn	Routes intake channel to appropriate TIF capture subprocess	Branch, Call Center, Digital, Advisor
transfer-operations.bpmn	Validates TIF completeness and triggers KYC/AML	QG-0 evaluation, remediation loop
transfer-master.bpmn	Main orchestrator for T1-T6 phases	NSCC submission, asset list review, settlement
transfer-delivering-firm.bpmn	Reviews asset list from delivering firm, identifies non-transferables	Discrepancy resolution, client notification
transfer-settlement.bpmn	Routes assets to DTC, Fund/SERV, or wire settlement	DTC book-entry, fund re-registration, wire
remediation-loop.bpmn	Recursive subprocess for quality gate failures	Task creation, SLA tracking, re-validation
quality-gate.bpmn	Near-real-time margin monitoring and call generation	Equity calculation, notification, liquidation
transfer-nscc-simulation.bpmn	Enforces 6-business-day FINRA deadline	Timer event, purge notification, cleanup
compliance-checkpoint.bpmn	Reconciles settled assets, forwards residuals	Quantity matching, residual forwarding, close

BPM Simulation

Transfer Master Orchestration

End-to-end transfer lifecycle with NSCC/DTC message choreography

Key Features: 4 swim lanes (Intake, Compliance, Operations, Settlement) | Message flows to NSCC and Delivering Firm | Compliance checkpoints at pre-submit and post-settlement

BPM Simulation

Transfer Intake Process

Multi-channel intake with QG-0 validation and remediation loop

Channels: Digital Self-Service | Advisor-Initiated | Branch Walk-In | Call Center | QG-0: Intake completeness validation with DMN-driven routing

BPM Simulation

Quality Gate Subprocess

Reusable gate validation with DMN rules and CloudEvents audit trail

BPM Simulation

DMN Decision Tables

7 decision tables encoding business logic and regulatory rules

DMN Table	Inputs	Outputs	Rules
intake-channel-routing.dmn	Channel type, client auth level	TIF capture subprocess to invoke	4
qg0-intake-completeness.dmn	TIF completeness, KYC status, ownership verified	PASS/FAIL, remediation type if FAIL	12
asset-transferability.dmn	Asset type, CUSIP, exchange	Transferable flag, settlement method (DTC/Fund/Wire)	25
qg1-submission-readiness.dmn	Asset type, transfer type (full/partial)	Action (liquidate, abandon, manual re-register)	8
margin-adequacy.dmn	Margin debit, equity value, account type	PASS/FAIL, required deposit amount	6
escalation-routing.dmn	Task type, hours elapsed, business hours	Escalate flag, escalation tier (L1/L2/L3)	9
qg2-delivering-firm-acceptance.dmn	Business days since initiation, gate failures	Purge flag, notification recipients	3

BPM Simulation

Process Variables

23 simulation state variables tracked throughout the lifecycle

Variable	Type	Purpose	Example Value
transferId	String	Unique transfer identifier	TXF-2026-000123
nsccControlNumber	String	NSCC-assigned control number	A12345678
intakeChannel	Enum	How transfer was initiated	BRANCH / CALL_CENTER / DIGITAL / ADVISOR
transferType	Enum	Full or partial transfer	FULL / PARTIAL
accountType	Enum	Account classification	CASH / MARGIN / IRA / JOINT
currentPhase	String	Current lifecycle phase	T1, T2, T3, T4, T5, T6
currentGate	String	Current quality gate	QG-0, QG-1, QG-2, QG-3, QG-4, QG-5, QG-6
gateStatus	Enum	Gate evaluation result	PASS / FAIL / PENDING
businessDaysElapsed	Integer	Business days since initiation (purge timer)	0-6
assetList	JSON Array	List of assets to transfer	[{cusip, quantity, price}, ...]
nonTransferableAssets	JSON Array	Assets that cannot transfer	[{cusip, reason, action}, ...]
marginDebit	Decimal	Outstanding margin loan balance	400000.00
equityValue	Decimal	Total account equity	2400000.00
remediationAttempts	Integer	Number of remediation loops	0-3 (escalate at 3)
clientTier	Enum	Client tier classification	RETAIL / AFFLUENT / HNW / UHNW
hasMargin	Boolean	Account has margin capability	true / false
hasOptions	Boolean	Account has options positions	true / false
hasNonTransferables	Boolean	Account contains non-ACATS-eligible assets	true / false
gateAttemptCount	Map<String, Integer>	Attempts per quality gate	{"QG-0": 2, "QG-1": 1, ...}
deficiencyCodes	JSON Array	List of validation failure codes	["DEF-001", "DEF-003"]
purgeTimerActive	Boolean	6-day purge timer running	true / false
complianceFlags	JSON Array	Active compliance holds/alerts	["KYC_REVIEW", "SUITABILITY"]
auditTrail	JSON Array	Immutable event log reference	[{event, timestamp, actor}, ...]

BPM Simulation

External Task Workers

11 worker topics connecting BPM to external systems and simulation services

Topic	Purpose	System/Service
acats-submit-to-nscc	Submit TIF to NSCC ACATS system	NSCC Gateway / Mock NSCC
acats-receive-asset-list	Receive asset list from delivering firm via NSCC	NSCC Gateway / Mock NSCC
acats-initiate-settlement	Submit book-entry transfer instructions to DTC	DTC Gateway / Mock DTC
acats-confirm-settlement	Receive settlement confirmation from DTC	DTC Gateway / Mock DTC
acats-check-kyc	Perform KYC/AML verification at intake	Compliance Service
acats-notify-client	Send notification to client (email, SMS, portal)	Notification Service
acats-notify-advisor	Send notification to financial advisor	Notification Service
acats-check-margin	Calculate near-real-time margin equity (<15 min) and requirements	Margin Calculation Engine
acats-classify-asset	Classify asset transferability and settlement method	Asset Classification Service
acats-log-audit-event	Write event to immutable audit trail	Audit Event Store
acats-match-reconciliation	Match settled assets against expected asset list	Reconciliation Service

BPM Simulation

Timer Events

5 timer definitions enforcing FINRA deadlines and SLAs

Timer Event	Duration	Trigger	Action on Fire
6-Day Purge Timer	6 business days	Transfer initiation (T1 start)	Terminate transfer, notify all parties, archive
3-Day Validation SLA	3 business days	NSCC submission (T1 complete)	Escalate to delivering firm contact, compliance alert
Remediation Task SLA	24-48 hours (task-dependent)	Quality gate failure creates remediation task	Escalate to supervisor, auto-call client
Settlement Confirmation Timeout	Same business day	DTC settlement instruction sent	Settlement failure workflow, manual intervention
Margin Call Response Window	T+4 (Reg T requirement)	Margin call generation	Liquidation workflow if deposit not received

Business Day Calculation

All timer events use a business day calendar that excludes weekends, market holidays (NYSE calendar), and firm-specific holidays. Timer is paused when markets are closed.

BPM Simulation

System Architecture Overview

Layered architecture from client interfaces to data persistence

Fluxnova

BPM Engine (FINOS)

PostgreSQL

Relational Data Store

Redis

Near-Real-Time State Cache

REST + Kafka

External Task Communication

Technical Requirements

Non-Functional Requirements

Performance, security, and scalability requirements

Performance

API Response: <200ms (p95)
Margin Calc: <15 seconds
Concurrent Accounts: 500K+
Uptime SLA: 99.95%
RPO/RTO: 15min / 1hr

Security

Encryption: AES-256 at rest
Transport: TLS 1.3
Key Management: HSM-backed
Compliance: SOC 2 Type II
Authentication: MFA required

Scalability

Concurrent Transfers: 5,000+
Multi-Tenancy: 100+ firms
Horizontal Scale: Kubernetes-native
Event Throughput: 10K/sec
Data Retention: 7+ years (compliance)

Risk Management

Key Assumptions & Risks

Critical assumptions and top risks with mitigations (modeled for a hypothetical Tier 1 institution)

Critical Assumptions

ID	Assumption
A1	NSCC API access available for integration
A2	Margin calculation latency <15 minutes achievable
A8	FINRA accepts automated audit trail as examination evidence

Top 5 Risks

Risk	Mitigation
NSCC API delays	Mock NSCC for dev/test, staged rollout
Regulatory change	DMN-based rules engine for rapid update
Integration complexity	Phased approach, pilot with 2-3 firms
Market data latency	Multi-vendor feeds, fallback to EOD
Adoption resistance	Ops champion program, parallel run

Regulatory

Regulatory Framework

FINRA, SEC, and Federal Reserve regulations mapped to process controls

Regulation	Requirement	Process Control	BPM Enforcement
FINRA Rule 11870	3-day validation window*	QG-1 to QG-2 timer	Timer event escalates if delivering firm delays. *Delivering firm has 3 business days to validate; NSCC manages purge timing.
FINRA Rule 11870	6-day purge for stalled transfers	Purge timer from T1 initiation	Automatic transfer termination on Day 6. Applies to eligible ACATS securities only.
FINRA Rule 4210	25% maintenance margin minimum	QG-3 margin adequacy check	DMN table evaluates equity / debit ratio
Reg T (Fed Reserve)	50% initial margin requirement	Margin call generation logic	Real-time monitoring, auto-call if breach
Reg T (Fed Reserve)	T+4 margin call response deadline	Margin call response timer	Liquidation workflow if deposit not received
Reg U (Fed Reserve)	SBLOC non-purpose loan tracking	SBLOC LTV monitoring (future phase)	Separate monitoring engine with LTV thresholds
SEC Books & Records	7-year retention of all actions	Immutable audit event store	Every BPM event logged with HMAC-SHA256

Regulatory

Margin Call Process Overview

Real-time monitoring, automated call generation, and compliant liquidation

Monitoring & Detection

Real-Time Equity Calculation: Position value updates sub-15 minutes using market data feeds
Threshold Monitoring: Continuously compares equity to Reg T (50%), FINRA 4210 (25%), and house requirements
Breach Detection: Triggers margin call workflow immediately upon threshold breach
Intraday Coverage: Detects breaches during market hours, not just end-of-day

Call Generation

Simplified shortfall calculation: Required deposit = (Debit - (Equity × Margin %)) / (1 - Margin %). Note: Full engine evaluates Reg T, FINRA 4210, house, and concentrated position tiers.
Call record created in system with unique call ID
Multi-channel notification: Email, SMS, portal alert, advisor notification

Response & Resolution

T+4 Timer: Reg T requires response within 4 business days
Deposit Tracking: Wire/check deposits automatically applied to call
Voluntary Liquidation: Client can authorize sale of positions
Forced Liquidation: If T+4 expires without resolution, BPM triggers liquidation workflow

Liquidation Workflow

Compliance approval checkpoint (manager review)
Asset selection algorithm (most liquid first)
Trade execution via firm trading platform
Proceeds applied to margin debit
Client notification of liquidation with rationale
Full audit trail with regulatory justification

Regulatory

Securities-Based Lending (SBLOC)

Non-purpose loan monitoring and Reg U compliance

SBLOC Overview

Securities-Based Line of Credit (SBLOC) allows clients to borrow against their investment portfolio for non-securities purposes (e.g., real estate, business capital). Regulated under Federal Reserve Reg U.

Regulatory Requirements

Purpose Test: Loan proceeds cannot be used to purchase securities (non-purpose certification)
LTV Limits: Loan-to-value ratio typically 50-70% depending on asset mix
Maintenance Monitoring: Real-time LTV tracking triggers margin-like calls if portfolio value declines
Documentation: Purpose affidavit, account agreement, annual reviews

ACATS Integration (Future Phase)

Requirement	Implementation
Real-Time LTV Calculation	Same margin monitoring engine, different thresholds
Maintenance Call Generation	BPM workflow similar to margin call process
Client Notification	Multi-channel alerts when LTV exceeds limit
Deposit/Liquidation Options	Client can add collateral or sell positions
Reg U Compliance Evidence	Immutable audit trail of purpose certification and LTV monitoring

Implementation

Implementation Roadmap

Phased approach from foundation to full platform

Phase	Timeline	Key Deliverables	Success Criteria
Phase 1: Foundation	Q1 2026 (3 months)	Architecture design, dev environment, core data model, security foundation, NSCC gateway prototype	Architecture review passed, all engineers productive, message send/receive works
Phase 2: Transfer MVP	Q2-Q3 2026 (6 months)	TIF processing, asset list management, settlement workflow, compliance audit trail, operations dashboard	End-to-end flow functional, >98% accuracy, pilot feedback positive
Phase 3: Margin MVP	Q4 2026 - Q1 2027 (6 months)	Real-time monitoring engine, margin call workflow, multi-channel notifications, liquidation workflow, risk dashboard	<15min detection latency, >99.9% calculation accuracy, delivery within 15 minutes
Phase 4: Platform Completion	Q1-Q2 2027 (6 months)	Advisor portal, compliance console, SBLOC monitoring, full integration testing, GA release	Advisor satisfaction >4.2/5, evidence export <5 minutes, all acceptance criteria met

21

Total Months to GA

Q2 2027

General Availability Target

GTM Milestones

Q3 2026

Internal Pilot

Q4 2026

Beta (3-5 broker-dealers)

Q1 2027

Limited Availability (10-15 firms)

Q2 2027

General Availability

Implementation

MVP Scope Definition

Transfer MVP essential features vs. future phase enhancements

Feature	MVP Essential?	Rationale	Alternative for MVP
TIF Receipt and Validation	YES	Core transfer initiation	-
Asset List Compilation	YES	Core transfer processing	-
FINRA Deadline Enforcement	YES	Regulatory compliance	-
Settlement Workflow (DTC)	YES	Core settlement	-
Compliance Audit Trail	YES	Regulatory evidence	-
Operations Dashboard	YES	Operations visibility	-
Exception Queue with SLAs	YES	Exception management	-
Fund/SERV Integration	NO	Complex mutual fund re-registration	Manual re-registration process
Real-Time Margin Monitoring	NO	Requires market data infrastructure	Existing batch margin systems
Advisor Portal	NO	Enhancement to operations workflow	Operations provides status updates
SBLOC Monitoring	NO	Phase 4 enhancement	Existing bank credit processes

Implementation

Demo Walkthrough

14-step demonstration flow showcasing the complete ACATS platform

Step	Action	Demonstrates
1	Show client initiating digital self-service transfer (Margaret Chen)	Intake channel routing, TIF capture
2	Show QG-0 validation passing (completeness, KYC, ownership)	Quality gate evaluation, DMN table execution
3	Show BPM submitting TIF to mock NSCC, receiving control number	External task worker, NSCC integration
4	Trigger branch walk-in scenario (Robert Williams) with missing account #	QG-0 failure, remediation loop initiation
5	Show remediation task created with 24hr SLA, assigned to advisor	Task creation, SLA timer, notification
6	Advisor submits corrected account #, QG-0 re-validates and passes	Remediation resolution, gate re-validation
7	Show mock delivering firm sending asset list via NSCC	NSCC message receipt, asset list parsing
8	Show asset classification DMN table: DTC vs. Fund/SERV vs. Wire	DMN decision table execution, asset routing
9	Show margin account scenario (David & Sarah Park) with options positions	QG-2 non-transferable asset detection
10	Show margin adequacy DMN table: 16.7% margin ratio passes QG-3	Margin calculation, regulatory threshold enforcement
11	Show DTC settlement for Margaret Chen, mock DTC confirmation received	Settlement orchestration, external task worker
12	Show purge timer scenario (Thomas Andersen) at Day 5 with escalation alert	6-day purge timer, escalation before termination
13	Show compliance audit trail export: all events with timestamps and actors	Immutable audit log, FINRA examination readiness
14	Show operations dashboard: active transfers, exception queue, SLA status	Real-time visibility, exception-driven operations