Charles Schwab & Co. has asked the Depository Trust and Clearing Co. (DTCC) to add the capacity to automatically process short-term mutual fund redemption fees to Fund/SERV. "We received a concept paper from Charles Schwab, and the next step is to discuss it with the ICI broker/dealer advisory committee," said Karen Gregory, spokeswoman for DTCC.
Even no-load funds are adding redemption fees to deter market-timing activity. However, DTCC, which clears funds for many fund complexes, has not yet added that service because the practice has become more popular only recently. Broker/dealers handle redemption fees.