Thomson Reuters' Beta to Connect Dealers to DTCC's Alternative Investments Custody, Clearing
Market data vendor Thomson Reuters has announced the debut of its Beta Systems Alternative Investment Products (AIP) solution for end-to-end brokerage processing of certain alternative investments. The platform will be implemented in partnership with the Depository Trust & Clearing Corp. (DTCC), which in March filed a Securities and Exchange Commission (SEC) rule amendment allowing it to provide comprehensive custody and processing of alternative investments through its subsidiary clearing arm, the National Securities Clearing Corporation (NSCC).
Making the DTCC's AIP processing available to all broker-dealers using Beta, the new connection is expected to streamline what was previously an intensive and manual process. It will provide firms quicker access to account position data, tax lot information, and integrated statements with interfaces providing usability for both brokers' back-offices and financial advisors.
"The project was initiated two years ago [well before the rule amendment], when we were approached by a large broker seeing burgeoning client demand for alternative investments access—previously reserved only for the highest net-worth clients, and institutions,” says Eric Jones, global head of Beta product management at Thomson Reuters.
That demand, he says, stems from increasing priority among investors to diversify their portfolios away from products whose changes in value closely correlate with broader equities markets fluctuation. Two years on, that demand has grown only stronger.
The project, according to Jones, initially functioned as an integrative and collaborative effort between five different players: Thomson Reuters and DTCC, the large broker, and two different alternative investment product providers. The group, with the broker serving as a pilot, wanted to test the DTCC's new process—based on a previous mutual funds model—for anomalies using real data, well before the March SEC rule amendment.
“The ultimate objectives are greater efficiency, risk mitigation, and lower operational costs for clients,” Jones says.
The platform, which will presently allow broker-dealers to manage submitted orders for non-traded real estate investment trusts (REITs), business development companies (BDCs), dividends, commissions and settlement processes, will also provide services covering managed futures, funds of funds, and other alternative securities in the near future.
DTCC also sees tremendous potential in the move. "It represents a critical first step in helping investors achieve their alternative investments goals with greater transparency and reduced costs," says Ann Bergin, managing director and general manager of the DTCC’s wealth management services.
Thomson Reuters’ Jones adds that the trend toward collaborations achieving automation within the wealth management space is certain to continue. Managed accounts, he says, represent an additional area already being scrutinized by the vendor.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
Getting aggressive: Overbond uses AI to assess dealer axes
The fixed-income analytics specialist has developed a new tool to help buy-side firms decide if they’re getting a good price from their dealers.
TS Imagine integrates LTX’s pre-trade analytics tool
Users of the fixed-income EMS will now have access to LTX’s Liquidity Cloud tool, which provides a pre-trade score for the likelihood of trading success.
European exchanges turn to dark trading in battle for flow
The EU’s two biggest exchanges are launching dark pools this year. The apparent change in their stances on dark trading reflects a profound shift in equities markets.
After contentious Opra upgrades, vendors brace for a faster future
Upgrades to the datafeed widely used to gauge the current market price for options contracts went into effect in February after three separate delays, which market participants say were caused by persistent bandwidth issues at some important recipients.
The IMD Wrap: No more turf wars, or why CDOs should heed the Voice of the CTO
Max reviews how our recent Voice of the CTO series has implications for those beyond a firm’s technology function, and how communication and collaboration between tech, data, and leadership will deliver better results.
Dark horse: Deutsche Börse building dark pool
New functionality allowing exchange members to execute sweep trades comes hot on the heels of European rival Euronext launching its own dark pool.
Waters Wrap: The tough climb for startups
Anthony speaks with two seasoned technologists to better understand why startups have such a tough time getting banks and asset managers to sign on the dotted line.
European firms prime for lopsided settlement in North America and at home
With T+1 imminent in North America and increasingly likely to traverse the Atlantic, operations and trading professionals in Europe are fighting on two fronts.
Most read
- Women in Technology & Data Awards 2024: All the winners and why they won
- Witad Awards 2024: Above and beyond award (vendor)—Susan Bennett, Tradeweb
- Dark horse: Deutsche Börse building dark pool