Editing Direct holding system (section)

==Historic disadvantages==
Within this system, transfers of securities had to be settled through the physical delivery of paper certificates and instruments of transfer. As a result, transactions were expensive in terms of labor and time. They were also risky, especially when transferred over long distances, since paper documents could be lost, stolen or counterfeited. Furthermore, while in transit, securities were not available for use or investment, causing what has been called "pipeline liquidity risk". These disadvantages have now been eliminated by the more modern and secure method of the electronic Direct Registration System (DRS) operated by stock transfer agents.