Networking for Standardized Data Reporting (SDR) is an enhancement to Networking that helps fund companies and insurance carriers better monitor trading frequency and market timing by investors whose transactions are housed in omnibus and super omnibus accounts.

Overview

Networking for Standardized Data Reporting (SDR) is an enhancement to Networking that helps fund companies and insurance carriers better monitor trading frequency and market timing by investors whose transactions are housed in omnibus and super omnibus accounts. These are pools of individual accounts combined into one account, usually in the name of a broker/dealer or other distribution firm. The ability to monitor these activities allows funds to more easily impose redemption fees, if applicable. (See separate fact sheet on Networking.)

Networking for SDR supports the operational needs of fund companies and intermediary firms to comply with SEC Rule 22c-2. It can also be used by insurance carriers and their distribution partners that are required to comply with the rule.

Networking for SDR is accessible via mainframe over DTCC’s SMART connection.

Who Can Use the Service

Any interested financial organization that meets NSCC qualifications and is a member of Networking can use the service.

Benefits

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

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 firms 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
• Acknowledgments from intermediaries
• Summary responses from intermediaries
• Detailed responses from intermediaries.

For More Information

Please contact DTCC Relationship Management at (212) 855-8877 or Insurance Services at 1 (800) 422-0582.