The Depository Trust & Clearing Corporation (DTCC) is developing technology to support the recommendations of the NASD and Industry Task Force on Breakpoints. The work is being performed on the Fund/SERV and Mutual Fund Profile Service and is expected to be completed by early 2004.

"The [MFPS] service in its present form does include breakpoint schedules from funds, but not the rules surrounding eligibility," said Ann Bergin, DTCC managing director for Distribution Services. "Once the terminology is standardized, we will make changes to the service to reflect the eligibility requirements in our system," Bergin added.

The modifications to Fund/SERV will enable broker-dealers and fund transfer agents to transmit and receive information so that the transaction can be processed with the appropriate breakpoint information

She said that DTCC started preliminary work several months ago in anticipation of the Task Force's recommendations, and that DTCC was working with the Task Force, as well as fund companies, firms, the Investment Company Institute and the SIA, as it enhances its systems.

"Any enhancements to existing services or, in fact, the development of new services, are brought to market by working closely with our various users. We expect that the same coordination with the industry regarding breakpoint issues will result in clear consensus on how our services can be delivered quickly and with minimum impact on our customers," said Bergin.

Bergin also said that both she and Barbara Simon, vice president, Mutual Fund Services, are members of two of the new working groups formed by the Task Force.  

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