Source: Depository Trust & Clearing Corporation
The Depository Trust & Clearing Corporation (DTCC) today announced that JPMorgan, SEI, Redi2 and Evare have signed on to DTCC's Managed Accounts Service, a centralized communications network that automates the exchange of account information needed to open and maintain managed accounts.
These firms join a growing number of major financial organizations that are actively working in DTCC's client test environment, including Citigroup Smith Barney, Citigroup's Global Transaction Services, Vestmark Software, Market Street Advisors and Octavian, among others. DTCC's Managed Accounts Service is scheduled to launch later this year.
"We are delighted to welcome these four new firms to our Managed Accounts Service," said Ann Bergin, managing director and general manager of DTCC's Wealth Management Services. "Managed accounts assets are projected to grow to $1.5 trillion from about $870 billion by 2010, and we've worked closely with the industry to streamline operations that will support that growth. We believe our centralized platform provides our clients tremendous efficiencies and much-needed scale, while reducing their costs and risks."
Currently the account data that flows between investment managers, sponsoring broker/dealers and service providers is inefficiently exchanged by phone, fax and paper. DTCC's Managed Accounts Service will automate that communication, allowing a seamless flow of information to multiple trading parties through one connection to a central platform.
"JPMorgan is pleased to support this important initiative," said Scot G. Knight, program director and vice president, JPMorgan's Managed Account Solution group. "By building an interface to DTCC's automated platform, we are accelerating access to groundbreaking industry advances for our clients, making it even easier for them to get in and grow in this exciting market."
JPMorgan provides an integrated suite of services to investment managers, sponsors and overlay managers who outsource their operational and administrative separately managed account infrastructure. The firm offers complete coverage including account workflow, reconciliation, trade support, billing and performance reporting.
DTCC has forged partnerships with some of the managed account industry's leading service providers to streamline customer access to its new Managed Accounts Service. As these providers establish secure links with DTCC, their investment manager and program sponsor clients have seamless access into the Managed Accounts Service.
"With the Managed Accounts Service, we'll be able to take advantage of a centralized communications network using industry standards that will greatly streamline the process of opening and maintaining managed accounts," said Bryan Dori, vice president of SEI. "We expect this to bring efficiencies that will add significant value for our clients."
Seth Johnson, chief executive officer of Redi2 Technologies, commented, "This standards-based platform will give our clients access to a vast network of managed accounts participants. Our clients also benefit from the straight-through processing for fee reconciliation in this rapidly growing segment of the global financial industry."
"As a transformation hub for the securities industry, centralized connectivity is a model we have long supported," noted Frederick Stanley, president and chief executive officer of Evare. "DTCC's effort is fostering industry growth through standardization and a common industry infrastructure. We are very happy to be able to be a part of this initiative to facilitate improved industry communications."