DTCC Connection

Nov 01, 2011 • DTCC Connection

DTCC Releases Model Message Schemas to the Industry

by Rich Marulanda


DTCC will submit its message standards, or schemas, for the processing of unified managed accounts (UMA)/model portfolio programs to The Money Management Institute (MMI), the national organization for the managed investment solution and wealth management industry. The availability of these message standards will help move the industry toward a single platform that centralizes and streamlines communication among investment managers, overlay portfolio managers and program sponsors, and will reduce risk and strengthen overall efficiency in this rapidly growing market segment.


“For four decades, DTCC’s mission has been to bring certainty and reliability to the financial markets by managing risk, reducing costs and automating processing. We are continuing this tradition by sharing DTCC’s message schemas with the managed solutions market,” said Ann Bergin, DTCC managing director and general manager, Wealth Management Services. “This is an important milestone that will help scale the market, facilitate growth and allow our customers to more effectively meet the needs of the sophisticated investors who are looking to benefit from UMA/portfolio programs.”


Open-source platform

“We are extremely pleased that DTCC is making its message standards fully available to the managed accounts’ industry,” said Gary Jones, lead technology consultant for the MMI. “Publishing the schemas on an open-source platform will allow firms to easily access them and offer suggestions for enhancements, keeping them relevant to the demands of the industry.” DTCC, in collaboration with other industry partners, developed its model management exchange service to address the growing trend of UMA/model portfolios. As of the second quarter 2011, UMAs comprised some $138.8 billion of the $2.4 trillion in assets under management associated with the managed solutions market, according to the MMI and Dover Financial Research. This represents a growth rate of 72% over the same period last year, making UMAs the fastest growing managed solutions segment.


DTCC estimates that approximately 1,500 investment models are currently being distributed across the UMA segment of the industry. By 2017, the number of investment models is expected to grow to 14,000 due to the roll out of industry data standards and the implementation of a DTCC communications infrastructure. These developments will make it easier for investment managers to communicate model specifications to UMA platform providers. DTCC’s model management exchange solution is a service offering of DTCC Solutions LLC, a subsidiary of DTCC, and is part of a suite of Wealth Management Services developed for the managed accounts industry. @


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