NU Online News Service, Oct. 27, 2003, 12:57 p.m. EST – The Depository Trust & Clearing Corp., New York, says it is developing a centralized service that will automate communications between the investment managers that handle separately managed accounts and the broker-dealers that sell SMAs.
The service will start by transmitting account opening data, such as the names, addresses and sponsor programs of the investors.
The service also will transmit verification of funding amounts and authorizations to trade, along with account maintenance data. The maintenance data will include notifications regarding funding amounts for deposits, notifications regarding funding amounts for withdrawals and notifications regarding account terminations.
DTCC reports that it already is testing a prototype service with several broker-dealers and investment managers.