Thomson Reuters Launches First Solution for Broker-Controlled Alternative Investment Trading and Settlements
Provides brokers and advisors greater transparency, reduced risk and lower
operating costs
NEW YORK, May 8, 2012 - Thomson Reuters, the world's leading supplier of
intelligent information for businesses and professionals, today announced the
launch of the first end-to-end brokerage processing solution for alternative
investment products (AIPs). Through a collaborative agreement with the
Depository Trust & Clearing Corporation (DTCC), Thomson Reuters has designed the
first service bureau processing solution to allow broker-dealer firms to manage
the submission of orders for non-traded real estate investment trusts (REITs),
business development companies (BDCs), dividends, commissions and settlement
processes through DTCC's AIP system and Thomson Reuters BETA Systems AIP
platform (BETA).
Until now, managing trading and settlements for an alternative investment
product has been labor-intensive. By integrating with DTCC's AIP service,
Thomson Reuters' BETA Systems brokerage customers will benefit from a
standardized and streamlined process, thereby mitigating risk for the broker-
dealers and their advisors. Brokerage firms can benefit from more timely and
accurate access to account position data, tax lot information and integrated
statements.
"Technological advances coupled with a much needed knowledgeable personal touch
are at the core of enhanced client service," said Eric Jones, global head of
BETA product management at Thomson Reuters. "We are delighted to collaborate
with DTCC to develop standards that meet a growing market demand for alternative
investment products within the retail investing community."
Because DTCC's AIP platform is seamlessly integrated with BETA, any BETA service
bureau broker-dealer firm can use the system to drive efficiency. Back office
professionals can easily send and track customer information (i.e. registration
data) to the AIP sponsor, submit and track client orders, process advisor/firm
commissions and track the settlement process.
"We are pleased to work with Thomson Reuters to make their alternative
investments processing system available to brokers and advisors, said Ann
Bergin, DTCC managing director and general manager of Wealth Management
Services. Â "It represents a critical first step in helping investors achieve
their alternative investments goals with greater transparency and reduced
costs."
DTCC subsidiary NSCC filed a rule amendment on March 7 with the Securities and
Exchange Commission (SEC) pertaining to broker/dealers' custody and possession
requirements for uncertificated alternative investments. The filing, which took
effect immediately, marks a milestone because it allows DTCC's AIP service to
offer an industry-wide solution that allows securities that are processed on AIP
to be deemed in a good control location, further reducing cost and risk, which
benefits all parties to these transactions.
The AIP system currently handles non-traded REIT and BDC (Business Development
Companies) securities. Firms can manage other AIP security types, such as
managed futures, hedge funds and private equity funds, but they will continue to
be processed manually. Future enhancements include new features and
functionality to process other AIP securities.
About BETA(
)Thomson Reuters BETA Systems is a complete suite of products that enables
clients to manage the daily tasks of their brokerage business. It offers all the
tools needed to manage daily operations, plus forward-thinking features to keep
clients positioned for the future. Thomson Reuters BETA Systems was built on
years of industry knowledge, hands-on experience and was designed to integrate
seamlessly into clients' current operations. BETA Systems is a single data
source that drives all of Thomson Reuters Wealth Management products,
guaranteeing the integrity of client data.
About Thomson Reuters
Thomson Reuters is the world's leading source of intelligent information for
businesses and professionals. We combine industry expertise with innovative
technology to deliver critical information to leading decision makers in the
financial and risk, legal, tax and accounting, intellectual property and science
and media markets, powered by the world's most trusted news organization. With
headquarters in New York and major operations in London and Eagan, Minnesota,
Thomson Reuters employs approximately 60,000 people and operates in over 100
countries. Thomson Reuters shares are listed on the Toronto and New York Stock
Exchanges. Â For more information, go to http://thomsonreuters.com.
CONTACT
Lemuel Brewster
Thomson Reuters
+1 646-223-5147
Lemuel.brewster@thomsonreuters.com
Press Release PDF:
http://hugin.info/142273/R/1609591/511285.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Thomson Reuters Corporation via Thomson Reuters ONE
[HUG#1609591]