Investment Operations

DTCC Launches Bid to Standardize Mutual Fund Communications

DTCC's Ann Bergin

Service centralizes the exchange of time-critical data within the mutual fund industry

The Depository Trust & Clearing Corporation said today that its MF Info Xchange service, the first offering of its kind to standardize communications for the mutual fund industry, has been enhanced with new efficiencies and capabilities, including integrating the offering with other DTCC mutual fund services.

According to the depository, the service centralizes the delivery and receipt of time-critical notifications and alerts, information that has typically been exchanged manually via fax, email or phone. MF Info Xchange has successfully delivered hundreds of notifications to more than 76,000 email recipients, according to DTCC documents. Its TCC’s Wealth Management Services has signed 134 clients to the service.

Analysts note that one key enhancement is the seamless integration with the DTCC Mutual Fund Profile Security Database, which further minimizes the risks associated with manual data entry and ensures consistency between these services by utilizing a single data source.

Other enhancements include the ability of funds to share their projected monthly, quarterly or annual dates for “Dividend/Capital Gains” and “Interval/Tender Fund” activity. Intermediaries can view all consolidated schedules in one place. In addition, a further refined audit trail for distributed notifications further increases transparency and reduces risk.

“We are actively using the MF Info Xchange service. The standardization of the communications has given our organization a significant lift in managing the notifications and all of the data,” said John Corbisiero, Head of Traditional Investment Products Operations at Morgan Stanley. “We have found it to be much more efficient on a daily basis since we no longer need to interpret the data. The calendar with all of the events in one place has also proven to be an added benefit,” Corbisiero added.

Ann Bergin, DTCC Managing Director and General Manager, Wealth Management Services, noted that Wealth Management Services had a tradition of delivering products that enhance their clients’ efficiency and risk management. “MF Info Xchange was developed with the input of an industry working group including DTCC clients and the Investment Company Institute (ICI),” said Bergin. “The response has been overwhelmingly positive and is a testament to the strong collaborative relationship we have had with the ICI committees. We will continue to develop additional functionality to further support evolving industry needs,” she added.