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The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, announced that it has processed over 100 million transactions through its Alternative Investment Products (AIP) platform since its launch, marking a key milestone in the growing adoption of the service.
The AIP suite of services links global market participants — including broker/dealers, fund managers, fund administrators and custodians — providing a standard end-to-end process for alternative investments such as hedge funds, funds of funds, private equity, non-traded real estate investment trusts (REITs), managed futures and limited partnerships. AIP supports electronic processing, standardizes the way the alternative investment industry communicates and provides scalability. Launched in 2008 with the collaboration of industry leaders and modeled after the significant success of DTCC’s Mutual Fund Services, AIP is poised to similarly transform the business of alternative investment products.
“The significant growth of this service is a testament to DTCC’s ability to increase scalability and efficiency in the alternative investment space,” said Ann Bergin, Managing Director and General Manager, Wealth Management Services. “We’re excited about the momentum we’ve seen this year with AIP and expect continued adoption as more clients realize the benefits of partnering with DTCC.” Currently, there are over 2,000 alternative investment vehicles on the platform, with 400 legal entities utilizing AIP for centralized processing.
Today, more and more investors are choosing to incorporate alternatives into their portfolios as a way to achieve diversification. At the same time, the risks and time associated with paper-based alternative investment processing and fragmented settlement can complicate the trade life cycle. As the only automated central processing organization for alternative investments, AIP is uniquely positioned to help investors meet this growing demand.
DTCC’s Wealth Management Services recently rolled out an enhancement to the AIP platform that fully automates internal account transfers - helping their clients mitigate risk in their daily operations and allowing them to focus more on growing their businesses. Additional enhancements are also slated for the second half of 2015 to improve AIP’s web platform and further develop commission processing with money settlement capabilities.
AIP is offered through the National Securities Clearing Corporation (NSCC), a subsidiary of DTCC, and is open to participants in the alternative investment space who meet NSCC eligibility requirements, including current members of NSCC, SEC-registered advisors and investment companies, CFTC registered commodity pool operators, trading advisors, broker/dealers, banks and trusts.
A list of current clients utilizing the AIP suite of services can be found on DTCC.com.
