The National Securities Clearing Corp., a self-regulatory organization, wants to offer insurers and other financial services companies a new processing platform.
The NSCC, New York, a subsidiary of the Depository Trust & Clearing Corp., New York, runs much of the infrastructure that supports the modern investment markets.
The NSCC now has filed a notice with the U.S. Securities and Exchange Commission reporting that it is seeking the rule changes necessary for it to establish an “alternative investment products service.”
The AIP service “would be a processing service for alternative investment products, such as hedge funds, funds of hedge funds, commodities pools, managed futures and real estate investment trusts,” NSCC officials write in the notice.
State-regulated U.S. insurance companies and non-U.S. insurers subject to similar regulatory regimes in their home countries would be eligible to participate in the AIP service system as manufacturers or distributors, the NSCC says.
Broker-dealers, banks, trust companies, investment companies, investment advisors, commodity pool operators and advisors, and other types of entities also could use the service, the NSCC says.
Fees for the service have not been established, but organizers hope it would allow for same-day settlement of funds over fedwire as well as a streamlined, standardized document transmission service, the NSCC says.
Public comments on the proposed service are due April 7.