New York, December 5, 2005 - ADP Investor Communication Services (ADP ICS), a division of Automatic Data Processing's (NYSE: ADP) Brokerage Services Group, announced today that they have formed a strategic alliance with The Depository Trust & Clearing Corporation (DTCC) to provide a joint, comprehensive tax information reporting service to banks and brokerage firms.
In order to meet tax reporting requirements, ADP's new solution will utilize its market-leading processing environment and the DTCC's comprehensive database to provide a platform for even the most intricate tax calculations and reporting. The new service will cover debt instruments with Original Issue Discount (OID), real estate mortgage investment conduits (REMICs) and real estate investment trusts (REITs), mutual funds and other securities that reallocate their distributions.
This alliance will combine the processing and world-class service of ADP's vast brokerage operations with the expertise and knowledge of DTCC's Domestic Tax Reporting Service. The combined resources of ADP and DTCC will be instrumental in changing the landscape of tax information reporting support services by bringing a new level of data and processing to the financial community. This new solution will enhance tax reporting compliance for the clients of both firms by providing the highest level of timeliness and accuracy.
"We are pleased to be working with DTCC to provide an industry leading solution to the bank and broker-dealer community," said Steve Neiss, Vice President of Tax Information Reporting at ADP ICS. "We are excited about the value that ADP and the DTCC together can bring to the industry and specifically our bank and brokerage clients to support them in their year-end processing efforts. We see this opportunity as extremely synergistic with many of our existing services including back-office processing, tax lot engine, as well as statement processing and 1099 print and distribution," says Neiss.
"The efficiency that DTCC and ADP together can bring to year-end processing efforts of the bank and broker community is tremendous," said William Salva, Group Director of DTCC. "Working together, we will be able to bring solutions to the problems our clients and the industry face as a whole in dealing with increasingly complex tax reporting requirements."
About ADP Brokerage Services Group
As the premier provider of transaction services to the financial industry, ADP has the capacity and technological expertise to assist its clients in differentiating themselves in the marketplace. ADP brings to financial intermediaries advanced, integrated systems for securities processing, desktop productivity and investor communication services, all focused on providing solutions for straight through processing and World Class Service.
Automatic Data Processing, Inc. (NYSE:ADP), with $8.5 billion in revenues and approximately 590,000 clients worldwide, is one of the largest providers of a broad range of premier, mission-critical, cost-effective transaction processing and information-based business solutions. For more information about ADP Brokerage Services Group, please visit our web site at www.bsg.adp.com and for other ADP services and investor information, please visit www.adp.com.
Through its subsidiaries, DTCC provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities and over-the-counter derivatives. DTCC's depository also provides custody and asset servicing for more than 2.5 million securities issues from the United States and 100 other countries and territories. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC has operating facilities in multiple locations in the United States and overseas. The Domestic Tax Reporting Service is operated by Global Asset Solutions, a DTCC subsidiary. For more information on DTCC, visit www.dtcc.com.
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