Editing Direct holding system (section)

{{Short description|Traditional system of securities clearance}}
{{More citations needed|date=July 2023}}
'''Direct Holding System e.g. The Direct Registration System (DRS)'''
 
A direct holding system is an arrangement for registering ownership of securities (or similar interests) whereby every final investor in the security is registered with a single entity (for example, the issuer itself, a CSD, or a registry). In some countries, the use of a direct holding system is required by law. 

The Direct Registration System (DRS) is an example of a direct holding system.  DRS is a traditional system of securities clearance, settlement and ownership in which owners of [[Security (finance)|securities]] have a direct relationship with the issuer. As implemented in the past, investors would either be recorded on the issuer's register or they would be in physical possession of bearer [[Stock certificate|securities certificates]].