AN INTRODUCTION TO DTCC’S
About The Depository Trust & Clearing Corporation
For more than 30 years, DTCC’s family of subsidiaries has provided
the financial services industry with continuously improving effi-
ciencies, reduced risk and lower costs through streamlined pro-
cessing solutions that are automated, centralized and standardized.
DTCC’s post-trade infrastructure system handles millions of trans-
actions each day and ensures uninterrupted connectivity to thou-
sands of financial firms in the U.S. and overseas.
DTCC’s subsidiaries are leading processors of a broad range of
asset management services, including mutual fund and fund retire-
ment plan programs, as well as managed accounts. Another family
of services in development will help the alternative investment
products sector gain similar efficiencies.
In 2006, DTCC settled more than $1.5 quadrillion in securities trans-
actions. DTCC's depository provides custody and asset servicing for
2.8 million securities issues from the United States and 100 other
countries and territories, valued at $36 trillion. The organization has
operating facilities in multiple locations in the United States and
For more information, visit www.dtcc.com.
AN INTRODUCTION TO WEALTH MANAGEMENT SERVICES
TCC’s Wealth Management Services can offer you
a suite of services designed for the distributors of
mutual funds, managed accounts and, with approval
from the Securities and Exchange Commission, alternative
investment products. And underpinning all these services is
a centralized infrastructure known throughout the world for
reliability and resiliency.
By using our Wealth Management Services, you
can expand your trading relationships, increase your
processing efficiencies, lower risk and reduce your
market and operational costs. DTCC is industry
owned and operates on an at-cost basis, which
means that as volumes grow, we return profits back
to our customers through rebates, discounts and,
over time, fee reductions.
Our goal is to help you grow your business, achieve
economies of scale and increase your revenues.
M U T UA L F U N D S E RV I C E S
T hrough decades of explosive growth and change, our Mutual
Fund Services have been at the center of operations, helping
the fund industry reach a pinnacle of over $11 trillion in assets
under management. Offering end-to-end connectivity, our automat-
ed and centralized services have allowed fund companies and the
distributors of their products to expand the breadth of their offer-
ings and the network of their strategic partnerships, while continu-
ously decreasing operational costs and risks.
We can demonstrate to you the power of Fund/SERV,®
our flagship transaction service and the industry standard.
On an average day, it’s capable of handling and settling
money obligations for close to 700,000 mutual fund trans-
actions worth trillions of dollars. And it has the built-in
capacity to process many more than that, so it’s always
ahead of market growth.
Other mutual fund solutions reconcile account information
between you and your business partners, and allow you to
streamline the exchange of vital data on your clients’ accounts,
as well as your firm. Our newest service was created to give
you a state-of-the art information repository for all the
rules-based information contained in a fund prospectus.
2 W E A LT H M A N AG E M E N T S E RV I C E S
With competition increasing, margins decreasing and compliance requirements
becoming more complex, our Mutual Fund Services can transform your fund busi-
ness into a highly efficient operation.
Mutual Fund Services include: Global Update
ACATS-Fund/SERV Transmits updated information to funds on
Transfers fund shares from one firm to firms’ branches and account executives.
another. Mutual Fund Profile Service
Commission Settlement Provides a central source for funds’ prospec-
Simplifies payment reconciliation between tus information.
funds and third-party distribution firms. Networking
Daily Price & Rate File Exchanges and reconciles account-level
Provides daily net asset values and rates information between funds and firms.
for daily accrual funds. Networking for Standardized
Defined Contribution Clearance Data Reporting
& Settlement Allows fund companies to request informa-
Facilitates the processing and information- tion on omnibus and super-omnibus
exchange of retirement and other benefit accounts to better monitor trading activity.
programs. Transfer of Retirement Assets
Fund/SERV® Transfers the value of fund shares held in
Centralizes order entry, confirmation, fund-sponsored IRAs from one fund to
registration and money settlement. another.
Mutual Fund Services are offered by National Securities
Exchanges orders and account informa-
Clearing Corporation, a DTCC subsidiary. For more
tion, in real time, between funds and bro-
information, visit www.dtcc.com/mutualfunds
ker/dealers, financial advisers and planners.
W E A LT H M A N AG E M E N T S E RV I C E S 3
M A N AG E D AC C O U N TS S E RV I C E
O ur Managed Accounts Service offers a centralized communica-
tions platform for the seamless exchange of information
required to initiate and maintain a client’s portfolio.
We realize it’s been difficult to juggle multiple
connections and manual processes for portfolios
that reside in a multitude of distinct sponsor
programs. It’s a chaotic mix of communications
that’s been squeezing your profit margins and
straining your potential for future growth.
When several industry leaders came to strengthen your core client service and
us for a solution, we swiftly responded, client-update capabilities. We built this
and worked with them and The Money service with an open architecture designed
Management Institute (MMI) to create for easy access and using XML-based
our Managed Accounts Service. It is the standard messaging developed by the
first of its kind and brings a new level of MMI, so errors, delays and operational
efficiency, risk reduction and streamlined costs are greatly minimized.
communications to an industry poised to And DTCC’s time-tested infrastruc-
grow to $1.5 trillion by 2011. ture provides you with unparalleled data
With this service, you can set up a integrity, security and business continu-
new account at lightning speed and at a ity capabilities – crucial factors for pro-
fraction of your current costs, and tecting your investors’ records.
4 W E A LT H M A N AG E M E N T S E RV I C E S
Our Managed Accounts Service currently offers a complement of messages that support
the account-opening life cycle. These include:
New Account Set-Up As the industry changes, our Managed Accounts
A complete composite of information and Service will be expanded to support new industry
instructions to initiate and activate a new man- product innovations, as well, including unified
aged account between a sponsor and an invest- managed accounts, multiple-style portfolios and
ment manager. model-only programs.
Account Maintenance We plan to further extend the service with addi-
A function that streamlines core activities such tional account maintenance messages, such as
as contributions and distributions to and from tax-trading guidelines, investment-manager style
an account, as well as account terminations, changes, and address, broker and custodian
minimizing processing and market risk. changes. We will also add functions to transmit
Client Profile Update corporate action messages.
A periodic client update that provides informa-
The Managed Accounts Service is offered by DTCC
tion on such changes as investment objectives, Solutions LLC, a DTCC subsidiary. For more informa-
tion, visit www.dtcc.com/managedaccounts
client profile modifications and other relevant
W E A LT H M A N AG E M E N T S E RV I C E S 5
A LT E R N AT I V E I N V E S T M E N T P RO D U C TS
D TCC has proposed a new suite of services to automate the
processing of hedge funds, funds of hedge funds, real estate
investment trusts (REITs), managed futures and commodity pools,
as well as other alternative investment products.
Alternative investments are becoming increasingly popular with investors
looking to grow their wealth in non-traditional products. Global hedge fund
assets alone have grown to $2.4 trillion in 2007 and are projected to reach
$4 trillion by 2010; and REITs, at $438 billion in assets, have almost tripled
in just five years.
It’s an exciting time to be active in these markets, with
new opportunities to build your business. At the same time,
you’re facing some profound operational challenges.
Right now, transactions are processed manually, an envi-
ronment that is error-prone and, therefore, susceptible to
high operational risk. Added to that, spreadsheet-based
record keeping and lengthy subscription documents slow
processing even further.
Our proposed solution will link broker/dealers, fund
managers, administrators and custodians through a central
network that will automate and streamline all the processes related to
trade order, sub-account document exchange and reporting. Money settle-
ment will be reported in multiple currencies, and virtually straight-
through-processing will increase the speed of settlement and eliminate
delays in reconciling transactions.
6 W E A LT H M A N AG E M E N T S E RV I C E S
Our services for alternative investment products will initially
offer these features:
New Account Set-Up Distributions
Exchanges information required to initiate Distributes share dividends and fund income
a new account. payments through an automated platform.
Initial Subscriptions Account Maintenance
Automates the process for submitting the Simplifies day-to-day activities, including
trade and provides a documents inventory. changes in account information and other
Standardizes confirmation of subscription Commissions
amount, effective date, account registration Allows funds to report and settle detailed
and settlement date. commission data, at both an account level
and a firm level.
Automates the liquidation of assets in a fund.
DTCC’s service for alternative investment products will
Exchanges be offered by its National Securities Clearing Corporation
Moves customer shares from one share class subsidiary, pending approval by the Securities and
to another. Exchange Commission. For more information, visit
Provides detailed, up-to-date reports on
the value of your clients’ investments.
W E A LT H M A N AG E M E N T S E RV I C E S 7
DTCC’s Wealth Management Services
A business unit of The Depository Trust & Clearing Corporation
Mutual Fund Services
Managed Accounts Service
A Service for Alternative Investment Products (Proposed)
To learn more, please call us at 1-212-855-8877
Or visit our Web site, www.dtcc.com