The National Securities Clearing Corp. (NSCC) plans to have a solution in place by mid-August to help mutual fund companies comply with the Securities and Exchange Commission's Rule 22c-2. The rule, scheduled to take effect on Oct. 16, requires funds to monitor accounts for market timing and set up agreements with intermediaries to respond to inquiries about questionable trades.

Fund companies have complained this would create a potential logistical nightmare, as they deal with multiple intermediaries, each with different data formats and transmission approaches. "If there's no data standard, [the fund] is going to have to negotiate what [the data] layout will be, and someone will have to program it" for each intermediary that a fund deals with, explained Tim O'Sullivan, a senior manager in Deloitte & Touche's national regulatory compliance practice.

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