New York, NY – May 20, 2015 – The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, has launched a new capability within its Wealth Management Services (WMS) business to streamline the processing of internal account transfers for alternative investments.
With DTCC’s Alternative Investment Products (AIP) service, market participants can now fully automate account transfers for non-traded real estate investment trusts (REITs) and business development corporations (BDCs). This allows broker/dealers to systematically manage the complex activities required to re-register accounts and internally transfer investors’ shares between closing and opening accounts, as needed.
Currently, account transfer transactions are largely manual operational processes – incurring paper trails, multiple registrations and numerous inter-departmental hand-offs – often taking broker/dealers several weeks to complete. The AIP enhancement eliminates manual processing by providing a standardized, automated solution that processes transactions, straight-through, in a single day. Broker/dealers can transmit data over a secure and reliable network, reducing risk and increasing efficiency and scalability for continued business growth.
The new solution addresses a long standing challenge identified by members of DTCC’s AIP Roundtable, a group of alternative investment industry decision makers. DTCC’s WMS team collaborates with its AIP Roundtable members regularly to create and enhance services for the benefit of the alternative investment markets.
“With AIP’s newest feature, we’re able to simplify the account transfer process for broker/dealers and their clients, and help alternative investment companies gain efficiencies that support the market’s growth,” said Ann Bergin, Managing Director, WMS at DTCC. “Our collaboration with the AIP Roundtable members helps ensure that we are meeting the needs of our current and prospective clients.”
WMS and its AIP service are offerings of DTCC’s National Securities Clearing Corporation (NSCC) subsidiary. Today, there are 382 clients – representing fund administrators, funds, broker/dealers and custodians – benefitting from the AIP service.
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With over 40 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry. From operating facilities, data centers and offices in 16 countries, DTCC, through its subsidiaries, automates, centralizes, and standardizes the post-trade processing of financial transactions, mitigating risk, increasing transparency and driving efficiency for thousands of broker/dealers, custodian banks and asset managers worldwide. User owned and industry governed, the firm simplifies the complexities of clearing, settlement, asset servicing, data management and information services across asset classes, bringing increased security and soundness to the financial markets. In 2014, DTCC’s subsidiaries processed securities transactions valued at approximately US$1.6 quadrillion. Its depository provides custody and asset servicing for securities issues from over 130 countries and territories valued at US$64 trillion. DTCC’s global trade repository maintains approximately 40 million open OTC positions and processes roughly 280 million messages a week.
To learn more, please visit www.dtcc.com or follow us on Twitter @The_DTCC.
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