The Depository Trust & Clearing Corporation’s (DTCC) Wealth Management Services (WMS) signed its 100th client to its Alternative Investment Products (AIP) suite of services as adoption of AIP continues to grow in the alternative investment marketplace.
AIP links global market clients to provide one standard end-to-end process for alternative investments such as hedge funds, funds of funds, private equity, non-traded real estate investment trusts (REITs), managed futures and limited partnerships. AIP’s clients represent more than 240 legal entities and 915 Fund profiles across multiple global markets, including broker/dealers, fund managers, fund administrators and custodians.
“The alternative investment industry as a whole benefits when a firm moves from the slow, risk-prone manual process to an automated and centralized service, such as AIP,” said Keisha Bell, DTCC Vice President, Wealth Management Services. “AIP can provide an unparalleled ability to mitigate risk and assist with regulatory compliance, as well as bring operational and cost-related efficiencies to help our clients grow their business, achieve economies of scale and increase revenues.”
AIP processed its first automated trade through DTCC’s National Securities Clearing Corporation (NSCC) subsidiary in 2012 and began providing a streamlined, automated and centralized processing solution to propel the market for alternative investments. Today, AIP processes approximately 2.3 million records monthly and 90,000 records daily.
AIP benefits for the alternative investment industry include:
Central Clearing and Settlement - Enables streamlined trade matching, which increases speed of settlement, accuracy and scalability.
Improved Exception Processing - The AIP service provides initial edits and exception processing on the order and sub-documentation. The service issues exceptions back to the transaction originator, who may accept, correct or reject the transaction.
Increased Transaction Transparency - The AIP service provides an audit trail on all of the transactions and transparency into transaction status.
Common Security Master - AIP maintains referential fund attribute data in one central repository, creating a “golden copy” of fund-related data and rules. .
Lower Operational Costs - Because no paper will be moved.
For more information about AIP: