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by Craig Donner

Related Information

Learning About CBRS Functionality

DTCC Solutions has implemented new functionality for the Cost Basis Reporting Service (CBRS) that enables financial intermediaries to upload records directly from an Excel spreadsheet rather than input them manually into the system. The change, which targets firms that have a relatively low daily volume of CBRS records, will reduce the risk of errors and make it easier and more efficient for this customer segment to submit cost basis information.

“CBRS is already being used broadly across the industry and we expect this new functionality to make the service even more accessible to customers with lower volumes,” said Murray Pozmanter, DTCC managing director and general manager, Clearing Services. “We also hope it will incentivize firms not currently using the service to sign on. The more firms that participate in the service, the more the entire customer base benefits.”

Standardized template

While market participants with larger volumes typically have a direct connection to DTCC and send their cost basis data over a proprietary network, customers using WebDirect can now download a standardized template to ensure that their information is submitted in the correct format and accepted by the service. The spreadsheet holds a maximum of 1,000 asset and tax-lot records. Firms with more than 1,000 records per upload will need to populate additional spreadsheets.

To ensure maximum flexibility, DTCC will also continue to make the legacy WebDirect input screens available to customers.

Supporting compliance

CBRS automates and standardizes the movement of cost basis information among broker/dealers, transfer agents, issuers, mutual funds and custodian banks in a secure electronic environment. The service allows financial firms to pass customer cost basis information on assets transferred through NSCC’s Automated Customer Account Transfer Service (ACATS) as well as non-ACATS transactions. CBRS does not calculate or store cost basis information for firms.

DTCC Solutions enhanced CBRS last year to help the industry comply with a January 1, 2011, federal mandate for firms to report equity cost basis information among financial intermediaries. The law, included in The Emergency Economic Stabilization Act signed in October 2008, requires firms to pass cost basis information among financial intermediaries when assets move from one institution to another.

“As financial firms face new regulatory mandates, we’re focused on developing solutions that centralize reporting requirements to help our customers