Networking for Standardized Data Reporting

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Wealth Management Services
Networking for Standardized Data Reporting Bank
Depository User Group October 16, 2007
National Securities Clearing Corporation is a
subsidiary ofThe Depository Trust Clearing
Corporation
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Background

• SEC Redemption Fee Rule 22c-2
• Board of Director's Meeting
• Written agreements
• Frequent trading monitoring
• Redemption fee monitoring
• Restrictions

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Background

• Investment Company Institute (ICI)
• Standardized Data Reporting Working Group
• Communications Taskforce
• Guidelines Taskforce
• Technical Design Taskforce

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Communications Taskforce

• Provides ICI members with information on Rule
  22c-2 initiatives
• Meetings
• Conference calls
• Memos
• Agreements Package

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Communications Taskforce

• Worked with a number of other industry groups to
  communicate with their constituencies
• American Bankers Association (ABA)
• American Society of Pension Professionals and
  Actuaries (ASPPA)
• Securities Industry Association (SIA)
• Society of Professional Administrators and
  Recordkeepers (SPARK)

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Guidelines Taskforce

• Provides guidelines for Standardized Data
  Reporting (SDR) via NSCC
• Definitions
• Best Practices
• Examples

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Technical Design Taskforce

• Designed SDR functionality
• Processing Flow
• Critical Data Elements
• Data Definitions
• Common Terms
• Record Layouts

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Common Terms and Definitions

• Omnibus an account held at the fund
  representing assets for multiple investors
• Plan Account a qualified retirement account
  containing multiple plan participants
• Super Omnibus an account held at the fund
  containing assets of more than one omnibus account

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Common Terms and Definitions

• Intermediary the company or institution from
  which the fund is requesting data
• Underlying Intermediary a related entity that
  transacts with the funds through services
  provided by an intermediary

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Common Terms and Definitions

• Category 1 Transactions
• Commonly considered to be participant-directed
  transactions
• Commonly considered to be transactions where the
  investor or rep may have sufficient control to
  perform market timing

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Common Terms and Definitions

• Category 2 Transactions
• Commonly considered to be non-participant
  directed transactions
• Commonly considered to be transactions where the
  investor or rep does not have sufficient control
  to perform market timing

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SDR Data Flow
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SDR Data Request

• Required Key Data
• Firm Participant Number
• Fund Participant Number
• Security Issue ID
• Account Identifiers
• SDR Control Number

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SDR Data Request

• Required Key Data
• SDR Request Type
• Fund Account Level
• Plan Level
• Investor Omnibus Account
• Fund/SERV Control Number
• Rep Level
• Stop Recurring

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SDR Data Request

• Search Parameters used to customize the request
  and assist the intermediary in giving the best
  possible response
• Date Range
• Social Security Number/Tax Identification Number
• Transaction Type (Buy/Sell)
• Threshold Amount

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SDR Acknowledgement

• Acknowledgement
• Response will be provided, or
• Request will be forwarded to underlying firm

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SDR Reject

• Intermediary Reject
• NSCC Reject
• Reject codes are available for both scenarios

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SDR Summary Response

• Super Omnibus
• Identifies underlying accounts
• Provides summary trading information
• Helps funds identify accounts to monitor
• May prompt separate detail request for additional
  information on accounts

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SDR Summary Response

• Required Key Data
• Plan ID/Investor Omnibus Account Number
• Dollar value of buys and sells

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SDR Summary Response

• Optional Key Data
• Number of Category 1 buys and sells
• Number of shares in Plan/Investor Omnibus Account
• End-of-day dollar balance
• Social Code

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SDR Detail Response

• Plan/Omnibus Account Level
• Provides trading detail for all individuals
  within an account
• Investor/Shareholder Account Level
• Provides trading detail for a specific individual

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SDR Detail Response

• Required Key Data
• Social Security Number/Tax Identification Number
• Transaction Type
• Transaction Category
• Trade Date
• Dollar/Share/Price

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SDR Detail Response

• Optional Key Data
• Transaction Source
• Transaction Code
• STR Fee Amount
• CDSC Amount

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Systems Interface

• Mainframe
• Fund Request
• Firm Response
• NSCC Rejects and Reminders
• Distributed (XML Messaging)
• Fund Request Input Only

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Systems Interface

• New Datatrak SYSIDs
• Production
• Fund Input 26398
• Firm Input 26327
• PSE
• Fund Input 46398
• Firm Input 46327

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Systems Interface

• New Autoroute Numbers
• Production
• Fund Request (and NSCC Reminders) 02100298
• Firm Response 02100327
• PSE
• Fund Request (and NSCC Reminders) 02980298
• Firm Response 02980327

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Hours of Operation

• Monday Friday
• Multibatch (all times are eastern)
• Input 900 a.m., 1200 p.m. and 300 p.m.
• Extract 1000 a.m., 100 p.m. and 400 p.m.
• Saturday
• Input 900 a.m., 1200 p.m. and 200 p.m.
• Extract 1000 a.m., 100 p.m. and 300 p.m.

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Resources

• Your Relationship Manager
• Mutual Fund Marketing 212-855-8877
• http//funds.dtcc.com
• Important Notices
• Manuals
• User Guides
• Record Layouts

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Mutual Fund Services
Questions?