DTCC Connection

Nov 01, 2011 • DTCC Connection

DTCC Enhances Cost Basis Service For Mutual Fund Industry

by Bari Trontz


Murray Pozmanter, DTCC managing director and general manager, Clearing Services

DTCC will launch enhancements to its Cost Basis Reporting Service (CBRS) in November to help customers comply with federal cost basis reporting regulations for mutual fund assets, which take effect in January 2012. The enhancements also include system improvements applicable to all asset classes.


“The CBRS platform provides the industry with a secure, automated and centralized hub to help clients meet regulatory mandates surrounding cost basis reporting,” said Murray Pozmanter, DTCC managing director and general manager, Clearing Services. “In this environment of significant regulatory change, DTCC is committed to identifying and delivering solutions that help customers meet their reporting needs, while also enabling them to mitigate risk, support standardization and improve processing efficiencies.”


“CBRS will play a critical role in helping the funds industry meet new regulatory requirements,” added Ann Bergin, DTCC managing director and general manager, Wealth Management Services. “DTCC’s ability to leverage this technology across asset classes brings added value to the markets and allows our clients to better serve their millions of mutual funds investors.”


Expanding the platform

CBRS manages the transmission of cost basis information from one participant to another on any asset transfer among broker/dealers, transfer agents, issuers, mutual funds and custodian banks in a secure electronic environment. The service, accessible through both automated computer-to-computer connections and via the Internet, allows financial intermediaries to pass their customers’ cost basis information on assets transferred through NSCC’s Automated Customer Account Transfer Service (ACATS), as well as many non-ACATS transactions.


The U.S. Emergency Economic Stabilization Act, enacted in October 2008, includes a law that requires firms to pass cost basis information among financial intermediaries when assets move from one institution to another. Last year, to help customers and other market participants comply with legislation that mandates the reporting of cost basis information on equity positions, DTCC leveraged its existing CBRS platform to build an enhanced technology solution.


Next in the pipeline for CBRS are additional enhancements to help firms comply with reporting mandates for fixed income and options, expected to take effect in 2013.


CBRS is offered by DTCC Solutions LLC, a wholly-owned subsidiary of DTCC. @


dtccdotcom