The Depository Trust & Clearing Corp. announced Monday that it has enhanced its Cost Basis Reporting Service to act as a central hub between all financial intermediaries—broker-dealers, transfer agents, issuers, mutual funds and custodian banks.
Thus, these market participants do not have to establish individual points of connection to transmit cost basis data. Clients can also log onto the CBRS via the Internet.
“The CBRS platform promotes standardization and centralization while also mitigating operational risk for our customers, reducing the cost of compliance and improving overall processing efficiencies,” said Susan Cosgrove, a managing director with DTCC.
“As financial firms face heightened reporting requirements, we’re continuing to work closely with our customers to identify and develop solutions that will allow them to meet these new responsibilities in the most efficient and cost-effective manner possible,” Cosgrove added.
DTCC began developing the service in 2009 when the industry approached it seeking help with complying with the new cost basis reporting requirements, which apply to mutual funds as of January 1, 2012 and debt, options and other securities as of January 1, 2013.