Improved DTCC Commission Program Includes Transactions Between Brokers

November 2, 2005 (—The Depository Trust & Clearing Corporation (DTCC) is expanding its Commission Settlement service for mutual funds to include settlement of broker-to-broker transactions.

The added service, provided by DTCC’s National Securities Clearing Corporation (NSCC) subsidiary, will increase efficiencies, the company said, allowing a broker/dealer who acts as a retirement plan provider or recordkeeper for multiple fund families to process commissions across all mutual fund investment choices for initiating brokers.

This is an improvement from the current system in which fund companies pay commissions to multiple brokers by check or other non-automated methods, DTCC says. This can lead to lost payments, costly processing and reconciliation, and confusion about compensation. Under the Commission Settlement program, payments will be sent electronically and will provide initiating brokers with a breakdown of information that will help them more accurately track payments

The new functionality of the program, which was originally introduced in 1992, will be tested in November and the enhancement is expected to launch in December.

For more information on DTCC, a provider of clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities and over-the-counter derivatives, visit .