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Networking for Standardized Data Reporting

Bank Depository User Group October 16, 2007

Networking for Standardized Data Reporting

Bank Depository User Group October 16, 2007

National Securities Clearing Corporation is a subsidiary of

The Depository Trust & Clearing Corporation

Wealth Management Services5939-2

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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

NSCC FirmFund

Data RequestInitiated

NetworkingProcessing andTransmission

Summary/DetailData File Created

NetworkingProcessing andTransmission

Summary/DetailData Received

1 2

345

AcknowledgmentReceived

Fund RequestAcknowledged

3a5a

NetworkingProcessing andTransmission

4a

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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 9:00 a.m., 12:00 p.m. and 3:00 p.m.

•Extract 10:00 a.m., 1:00 p.m. and 4:00 p.m.

•Saturday

•Input 9:00 a.m., 12:00 p.m. and 2:00 p.m.

•Extract 10:00 a.m., 1:00 p.m. and 3:00 p.m.

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•Your Relationship Manager

•Mutual Fund Marketing 212-855-8877

•http://funds.dtcc.com• Important Notices

•Manuals

•User Guides

•Record Layouts

Resources

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Questions?

Mutual Fund Services