In other news, EquiLend taps Digital Asset, TNS embraces a data center in Docklands & BetaNXT acquires Mediant.
Broadridge Solution Eases SEC Compliance
Broadridge Financial Solutions reports that it has developed a “technology-enabled template and end-to-end process solution for fund companies and fund administrators” that “simplifies the steps involved in creating and providing the SEC’s new Tailored Shareholder Reports.”
The digital template “is good for fund investors and compliant with the rules,” says Michael Tae, president of mutual fund and retirement solutions at Broadridge, in a prepared statement.
“Our end-to-end solution for funds and fund administrators offers iXBRL tagging, SEC-compliant layered web hosting, and comprehensive SEC filings, along with a personalized communication experience for fund investors that efficiently combines and delivers Tailored Reports just for the funds and share classes they hold within their accounts,” Tae says. “Our solution will drive added savings on paper and postage for companies and new savings … by encouraging more investors to receive all of their fund information electronically.”
The new template has a report composition component and is intended to automate a multi-step process for SEC rule compliance, according to Broadridge.
“The rule requires mutual funds and ETFs to provide concise, user-friendly reports to investors beginning July 24, 2024 for each share class of every fund. For fund companies, with large numbers of funds and share classes, this involves creating thousands of individual reports,” officials say.
“Broadridge is working with fund companies and fund administrators to employ digitization, automation and operational process improvements that produce better investor communications,” according to the provider. “Within each fund firm many groups are involved in the process, from the treasurer’s office, to operations, legal, marketing … making automation essential.”
The SEC identified the topics and sequence for these reports “but a sample format was not provided. To help industry executives, Broadridge created a template that allows for digital inputs and is concise, engaging and visually clear while meeting the SEC requirements,” officials say.
Here is a link to Broadridge’s template sample: https://bit.ly/3KR6I9D
EquiLend Taps Digital Asset for ‘1Source’ Initiative
Securities lending platform provider EquiLend has tapped Digital Asset to provide the distributed ledger technology (DLT) that will support the EquiLend “1Source” effort, officials say.
“Unveiled in July 2022 as part of EquiLend’s Digital Transformation Working Group, which consists of many of the world’s largest banks and broker-dealers, 1Source aims to resolve the central pain points and risks impacting the securities finance industry,” according to EquiLend’s announcement. “By working with Digital Asset, EquiLend will … provide market participants with a ‘single source of truth’ for securities finance transactions.”
Now, the counterparties of a securities lending transaction “record contract details separately in their respective systems, which often leads to ‘breaks’ downstream in the trade lifecycle,” according to EquiLend. By using Digital Asset’s Daml smart contract language and Canton privacy-enabled blockchain, “the 1Source initiative ensures trade details stay in sync throughout the entire lifecycle for both parties.”
The use of DLT is intended to end the need for “costly and inefficient reconciliation processes,” EquiLend adds.
“Using Daml and Canton will … create a single ledger for trading activity for all market participants, leading to more efficient and profitable trades,” says Kelly Mathieson, chief business development officer at Digital Asset, in a statement.
“EquiLend underwent a 1Source proof of concept (POC) with financial market leaders, which concluded in December 2022. The initiative is currently in the build phase, following which 1Source will go live for market participants, as well as other vendors and market infrastructures interested in connecting, in 2024,” according to EquiLend officials.
TNS Moves Clients’ Systems to Docklands Data Center
Transaction Network Services (TNS) is migrating the trading platforms and market data systems of its clients “from the existing Primary Data Center located in the City of London to the new London Stock Exchange Group (LSEG) Data Center near the Docklands, London,” according to TNS officials.
The migration to the Docklands site is for capitalizing on the “significant infrastructure capacity in the new data center,” which will help TNS offer access to its portfolio of Layer 1 accessible markets, according to TNS.
“TNS is leveraging its Layer 1 switching solution to deliver ultra-low latency mutualized market access and network connectivity. The new LSEG Data Center is fully integrated onto TNS’ leading global network,” TNS explains.
“We are providing a full suite of low latency services, including order routing and market data access. In addition to procuring, installing and management of trading infrastructure, we are helping our clients save crucial nanoseconds in the race to execute trades,” says Jeff Mezger, vice president of product management for TNS’ Financial Markets business, in a statement.
“TNS brings together over 2,800 financial community endpoints to address the needs of financial market participants worldwide,” officials say. TNS offers access to more than 60 exchanges across the world.
BetaNXT Acquires Mediant Communications
The private equity firms backing wealth management software vendor BetaNXT have acquired investor communications technology vendor Mediant Communications in an effort to improve BetaNXT’s suite of solutions, officials say.
Those private equity firms are Clearlake Capital Group, L.P. and Motive Partners and they are hoping that the acquisition will help BetaNXT expand into “investor communications through Mediant’s digital-forward communications capabilities, industry experience and reliability,” officials add.
“We are now able to offer an additional functionality that will benefit our clients and allow their operations to be more connected,” says Stephen C. Daffron, chairman and CEO of BetaNXT.
BetaNEXT will combine its Beta and Maxit wealth management solutions with Mediant and offer them via a single, integrated platform, officials say.
BetaNXT has “an operating history of over 40 years,” and “supports more than 50 million retail accounts, has more than $6 trillion of assets on the platform, and processes more than 35 million securities-related transactions daily,” officials say.
Mediant’s investor communications technology will become part of a broader suite of software solutions that “includes real-time data capabilities, cost basis and tax reporting solutions, and front, middle and back-office applications. The integration will result in a more complete, holistic solution for wealth management firms, allowing for additional cost savings and a more streamlined communications process that will benefit investors,” officials say.
“We are focused on providing critical data connections for our clients, with visibility into the source and destination of all data that flows through our wealth solutions,” says Tim Rutka, president of beta by BetaNXT, in a statement. “Incorporating Mediant’s capabilities will provide tremendous value to our mutual client networks.”
BetaNXT was advised by Sidley Austin LLP. Mediant was advised by Ardea Partners LP and Morgan, Lewis & Bocklus LLP.
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