According to a news release, The Depository Trust & Clearing Corporation’s (DTCC) product will automate the flow of data to establish and service SMA accounts – now a largely manual process – and increase efficiency while reducing errors and operational risks.
DTCC said the service will also help eliminate the multiple connections that now exist between parties, decrease the cost and time it now takes to open and service SMA accounts, and provide opportunities for users to expand trading relationships.
Initially, the new service will transmit:
- Account opening data. This will include name, address, investment strategy and sponsor programs of the investor, as well as verification of funding amounts and authorization to trade.
- Account maintenance data. This will include notifications regarding funding amounts for deposits and withdrawals, as well as account terminations.
In the near future, DTCC plans to expand the functionality of the service to include additional account maintenance specifications.
The new product will be an offering of DTCC subsidiary National Securities Clearing Corporation.