By creating a robust data stream within Networking for fund companies to request and obtain shareholder identity and trading information, the DTCC says that it can leverage its existing Networking technology to help fund companies better monitor trading frequency by investors whose transactions are housed in omnibus accounts (a pool of individual accounts combined into one account, usually in the name of an intermediary), and ensure that a fund’s market-timing policies are being enforced.
The enhancements complete the work started last September when the DTCC went live with an initial set of enhancements to Networking and Fund/SERV that automated the processing of short-term redemption fees, charges to investors who rapidly roll in and out of funds before a predetermined holding period has elapsed.
