The DTCC, a post-trade services and systems utility provider, reports the launch of its alternative investment products (AIP) service, a new capability within its wealth management services (WMS) business to streamline the processing of internal account transfers for alternative investments.
With the AIP service, “market participants can now fully automate account transfers for non-traded real estate investment trusts (REITs) and business development corporations (BDCs),” DTCC says in a statement. “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.”
Noting that current 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,” DTCC says that 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 latest AIP features enable the DTCC “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,” Ann Bergin, DTCC ‘s managing director, WMS, says in the statement.
WMS and its AIP service are offerings of DTCC’s National Securities Clearing Corp. subsidiary. “Today, there are 382 clients – representing fund administrators, funds, broker/dealers and custodians – benefitting from the AIP service,” according to the DTCC, which also notes that 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.”
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