DTCC Extends Mutual Fund Services to Non-U.S. Firms

The Depository Trust & Clearing Corp. is allowing non-U.S. financial firms to take advantage of the access, low costs and risk-management protection of its Mutual Fund Services, including Fund/SERV. It is the first time that DTCC has opened up these services to non-U.S. firms.

“Our cross-border business has been growing steadily over the last five years, primarily through overseas affiliates of U.S. firms,” said Ann Bergin, managing director and general manager of DTCC Wealth Management Services. “With pressure to reduce expenses and streamline operations, interest has heightened from overseas funds and firms asking DTCC to extend the reach of our services to their markets.”

DTCC charges $0.05 to process a mutual fund through Fund/Serve, an incredible fraction of the $53 to $67 that fund transactions in Europe typically cost, primarily because they are done by hand.

In 2008, Fund/SERV processed 193 million transactions in various asset classes valued at $2.9 trillion, sent by 650 fund complexes.

Robeco is one of the first foreign firms to apply for membership in DTCC subsidiary National Securities Clearing Corp. (NSCC).