If the Securities and Exchange Commission approves a filing by DTCC, the not-for-profit clearing and settlement giant, best known for its work for the mutual fund industry, it will be able to do the same for separately managed accounts.
DTCC's National Securities Clearing Corp. is proposing a new service that will link broker/dealers and investment managers, who currently rely on a highly manual, decentralized system. Initially, the new service will include account-opening data and account maintenance data, including deposits, withdrawals and account terminations.
"Universal adoption of a DTCC communications hub can be a huge win for both sponsors and investment managers by eliminating manual steps, improving operational efficiencies and ultimately providing improved client service," said Rick Austin, co-chairman of the Money Management Institute's technology and operations committee. Austin is a senior vice president with UBS Financial Services.
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