Depository Trust & Clearing Corporation
 

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Products & Services

Wealth Management Services

Wealth Management Services

Defined Contribution Clearance & Settlement

a service offering of National Securities Clearing Corporation (NSCC)
Defined Contribution Clearance & Settlement (DCC&S) is a service package that facilitates the automated processing and reporting of defined contribution and other types of retirement plans that may include mutual funds, collective and stable value funds, guaranteed investment contracts, and other investments.

Overview

Defined Contribution Clearance & Settlement (DCC&S) is a service package that facilitates the automated processing and reporting of defined contribution and other types of retirement plans that may include mutual funds, collective and stable value funds, guaranteed investment contracts, and other investments.

The service is used by mutual fund and insurance companies, third-party administrators (TPAs), plan trustees and plan administrators, broker/dealers and other intermediary firms. DCC&S incorporates the functionality of Fund/SERV®, Networking, and Mutual Fund Profile Service to reduce the time, costs, and risks associated with processing  these transactions.

Fund/SERV centralizes order entry, confirmation, registration and money settlement.  Networking facilitates the exchange and reconciliation of customer account-level information among all parties to a retirement investment transaction. And Mutual Fund Profile Service captures daily prices in the form of net asset values (NAVs) and rates for daily accrual funds.

DCC&S is accessible via CPU-to-CPU links, or through DTCC WebDirect, a Web interface that allows participants direct access over the Internet to services provided by DTCC's subsidiaries.

Who Can Use the Service

Any interested financial organization that meets NSCC qualifications can use this service. There are several different membership categories and requirements for DCC&S.

Benefits

  • Automates and standardizes order flow procedures, making processing more efficient, reducing operating costs, supporting volume growth and expanding product offerings.
  • Eliminates the need for multiple links, faxes and phone connections.
  • Simplifies the settlement process by calculating a single money settlement figure for each settling participant every day.
  • Expands business opportunities for  plan administrators, TPAs, mutual fund families and trustees.

How the Service Works

Dual-Party Processing

  • Firms that act as both recordkeeper and trustee can participate in this service in the traditional Fund/SERV process. Under this scenario, there is no outside TPA.

Tri-Party Processing

  • TPAs update the individual plan participant accounts on their record keeping system and calculate orders for each mutual fund. TPAs then send NSCC the orders via Fund/SERV.
  • Following format and file edits, Fund/SERV transmits orders to fund companies. Trustees also receive a copy of these orders. Funds return confirmed and rejected orders through Fund/SERV.
  • All confirmed transactions are set up for settlement at NSCC. On the morning of T+1, NSCC provides trustees and funds with a net settlement figure. On T+1, NSCC makes a single net settlement debit or credit via Fed funds to each trustee and fund, and provides a summary of all purchases and redemptions.
  • Funds submit account position data to NSCC via Networking. NSCC then sends the designated trustee and TPA the position information for accounts they support.

For More Information

Please contact Wealth Management Services Marketing at (212) 855-8877.


This description is for informational purposes only. This Service is governed by applicable Rules, Procedures, and Service Guides for each DTCC subsidiary, which contain the full terms, conditions, and limitations applicable to this Service.

Technical Documentation

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Who to Call

Customer Service
1.888.382.2721

Membership
1.212.855.8877

Press Contacts
1.212.855.5472

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