CMC Interactive Selects SunGard For SEC Rule 22c-2 Compliance

SunGard says that New York based CMC Interactive, LLC (CMC) has selected the SunGard Transaction Network (STN) to help it ensure mandatory compliance with the proposed SEC 22c 2 regulation. This rule places the compliance requirement on mutual fund companies

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SunGard says that New York-based CMC Interactive, LLC (CMC) has selected the SunGard Transaction Network (STN) to help it ensure mandatory compliance with the proposed SEC 22c-2 regulation. This rule places the compliance requirement on mutual fund companies but provides the right of the fund company to restrict or terminate trading privileges for any intermediary that is not compliant. CMC is in line to meet the industry’s regulatory compliance deadline.

SunGard’s STN 22c-2 Services, when coordinated with CMC’s Relius Administration retirement record keeping solution, will seamlessly route requested data directly to mutual fund companies or through the NSCC, the industry’s clearing house, in order to help manage Rule 22c-2 compliance and administration. STN 22c-2 Services is an ASP-based solution. The ASP delivery method provides the ability for CMC to warehouse daily trade data and provide fund companies with shareholder data at the transaction level through a single connection to STN.

“Automation is critical,” says Michael Calandra, a principal of CMC Interactive, LLC. “SunGard is helping make it possible for us to be in compliance with this regulation without placing additional burdens on our daily processing requirements. This will help us redirect our staff focus on adding value to every client interaction rather than keeping pace with fund company requests for trade detail. SunGard’s STN 22c-2 Services will help us improve our business operations while helping protect shareholder money. And being ready to meet the compliance deadline gives us a competitive advantage.”

“Our customers depend on STN to create solutions that help them stay ahead of changing industry regulations without burdening their capacity to provide quality service to their clients,” says Kevin Rafferty, president, SunGard Transaction Network. “STN 22c-2 Services integrates with existing SunGard and third-party solutions so that our customers’ normal processing is not disrupted and they can comply with SEC Rule 22c-2 without making significant changes to their existing infrastructure.”

According to the SEC, approximately 6,800 intermediary firms hold mutual funds. Of those, 470 firms will not be subject to the 22c-2 regulation because they do not have omnibus registrations. The remaining 6,330 intermediaries are subject to requests for transaction details. Building upon its network connectivity model, SunGard’s STN 22c-2 Services links the entire data path, from financial intermediaries to the NSCC to fund companies and transfer agents, to help both fund companies and financial intermediaries handle the intricacies of 22c-2 compliance. Services include data warehousing, date request monitoring, an analytics engine, reporting and administration.

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