Although mutual funds have been an investment option for decades, the lack of standardization across mutual fund companies continues to plague the systems expected to support them. Legacy platforms were designed to support the standardized trading and settlement of equities through a single depository, the Depository Trust Company (DTC).
Requiring these platforms, designed to handle one set of rules, to manage rules across 600 mutual fund companies created a considerable operational challenge. Our mutual fund trading and reconciliation platform, Mutual Fund Desk (MFD), has been designed from the ground up, specifically for this function. Our comprehensive coverage supports transaction timing rules used across 600 fund companies, representing 30,000 mutual funds.
MFD normalizes the key components of mutual fund processing, trading, settlement, reconciliation and income. MFD is also ahead of the curve from a revenue disclosure and distribution perspective. New industry regulations mandate the accurate tracking and distribution of mutual fund revenues. Many institutions today are not equipped to comply with these regulations, even when using a sub-custodian. MFD allows for instant compliance with industry regulations.