The unified managed account (UMA) market’s rapid growth will not continue without greater standardization and automation, says a Dover Financial Research report issued Wednesday and commissioned by Depository Trust & Clearing Corp. (DTCC).

In the study, Westwood, Mass.-based Dover recommends that firms “leverage current industry standardization efforts across UMA platforms to facilitate account openings, maintenance and reconciliation, as well as account conversion and setup” from separately managed accounts (SMAs) to UMAs. Common protocols are also needed for portfolio overlay managers and investment managers to validate and confirm execution price, trading instructions and changes to model portfolios.

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