Networking is an automated, centralized record-keeping system through which all customer account activities can be exchanged and reconciled by participants.

Overview

Networking is an automated, centralized record-keeping system through which all customer account activities can be exchanged and reconciled by participants. The service provides accurate, timely updates in a controlled environment. Networking for Standardized Data Reporting (SDR) is an enhancement to Networking (for mutual funds) that helps fund companies and insurance carriers better monitor trading frequency by investors whose transactions are housed in omnibus and super omnibus accounts – a pool of individual accounts combined into one account, usually in the name of an intermediary. SDR ensures that a fund's market-timing policies are being applied.

The enhancement supports the operational needs of fund companies, insurance carriers and their intermediary firms to comply with SEC Rule 22c-2.

Networking for SDR is accessible via CPU-to-CPU links, or through DTCC WebDirect, a Web interface that allows direct Internet access to DTCC’s subsidiary services.

Who Can Use the Service

Any interested financial organization that meets NSCC qualifications can use it.

Benefits

Networking for SDR:

• Provides an efficient, streamlined and cost-effective process to comply with regulatory requirements.
• Leverages existing technology and uses standard data formats to provide an easy way to exchange information and monitor trading frequency.
• Automates and centralizes information exchange through a single connection and standardized data formats.

How the Service Works

Using the SDR stream within Networking, fund companies and insurance carriers can request and obtain shareholder identity and trading information from intermediaries on two levels:

• At the summary data level, where information is passed for super omnibus accounts - those composed of multiple plans, trusts and/or investor omnibus accounts.  This information may include account numbers and the dollar value of all shareholder buys and sells.
• At the detail data level, where information is passed on a specific account or at the shareholder trading level.

Networking for SDR supports the following functions:

• Data requests from fund companies and insurance carriers
• Acknowledgments from intermediaries
• Summary responses from intermediaries
• Detailed responses from intermediaries.

For More Information

Please contact Insurance & Retirement Services at 1-888-382-2721, or email us at insurance@dtcc.com.