TRUSTlynx has implemented trading automation features of the National Securities Clearing Corporation and Defined Contribution Clearance & Settlement (DCC&S), which allows participating programs to take advantage of a close-of-market trading deadline (4 p.m. ET) for participants in plans they administer.
The TRUSTlynx service of First Trust Corporation provides custody and electronic trading of daily valued retirement plan assets to TPAs.
TPAs also can now exchange between fund families with same-day settlement for DCC&S-eligible funds on the platform.
The cross-fund service applies even if the exchanged funds are not DCC&S-eligible. However, those funds will settle within the trade date plus one business day (“T+1”).
To insure compatibility with varying recordkeeping systems, TRUSTlynx is also offering TPAs the option to trade via DCC&S with audited pricing files. TRUSTlynx will send these files to the TPAs, who settle trades on their own recordkeeping systems.
That process extends the cutoff for TPAs to send participant trades to TRUSTlynx to 8 p.m. ET for trades received from participants by 4 p.m.
Denver-based First Trust Corporation administers nearly 159,000 retirement and custodial accounts valued at $16.2 billion. First Trust is a wholly owned subsidiary of Fiserv.