A 4787 - June 26, 1998
P&S 4349
TO: ALL PARTICIPANTS
ATTENTION: MANAGER MUTUAL FUNDS OPERATIONS, MANAGER DATA PROCESSING, MANAGER CASHIERS, MANAGER P&S DEPARTMENT
SUBJECT: MODIFICATIONS TO FUND/SERV FOR SYSTEMATIC WITHDRAWAL PLAN FREQUENCY INDICATOR
National Securities Clearing Corporation's (NSCC) Fund/SERV system is the industry standard for the automated and centralized processing of mutual fund orders, account registration and centralized net settlement.
Effective September 30, 1998, an enhancement to the Fund/SERV order entry process will be implemented and available for use by participants. The ICI Enhancements sub-committee of the ICI Broker/Dealer Advisory Committee requested that the system provide a Systematic Withdrawal Plan (SWP) Frequency Indicator for liquidations designated as a SWP. This is an optional field that will provide firms with the opportunity to distinguish the SWP frequency. This, in turn, will help the funds when determining CDSC requirements and will facilitate fund confirmations.
I. System Enhancements:
The new optional SWP Frequency Indicator will have the following values:
| 0 = Weekly |
| 1 = Monthly |
| 2 = Bi-monthly |
| 3 = Quarterly |
| 4 = Semiannual |
| 5 = Annual |
| 6 = Other |
This field should only be used in conjunction with Liquidation Indicator of 8 (Systematic Withdrawal). NSCC will reject the transaction if there is a value in the SWP frequency indicator field and the Liquidation Indicator is not an 8.
II. Revised Record Layouts
Please see Appendix A for modifications to the Order (Record Type 001), Correction (Record Type 003), As-Of Order (Record Type 004), Confirmation (Record Type 005), Reconfirmation (Record Type 006), Fund Originated Order (Record Type 007), Fund Originated As-Of Order (Record Type 009) and the Correction Confirmation (Record Type 025) formats.
All existing Mutual Fund Services record layouts can be found on NSCC’s Year 2000 file formats web page at www.y2000.org/nscc. The revised record layouts for the Fund/SERV enhancement as outlined in this notice will be available on this web page on July 17, 1998.
Beginning September 1, 1998, Fund/SERV users can begin testing these enhancements in NSCC’s Participant Test Region. Refer to Important Notice A4770 for information on this test region.
Any questions pertaining to this Important Notice can be directed to NSCC’s Mutual Fund Hotline at (212) 412-8893, your account manager, or the undersigned at (212) 412-8843.
Barbara SimonAppendix A
Enhancement to Fund/SERV: ORDER (Record Type 001), Correction (Record Type 003), As-Of Order (Record Type 004), Confirmation (Record Type 005), Reconfirmation (Record Type 006), Fund Originated Order (Record Type 007), Fund Originated As-Of Order (Record Type 009) and Correction Confirmation (Record Type 025) record formats.
Six-digit Fixed Record Format: Record 4
| Field Name | Start | End | Len | Opt/Req | Type | Description |
| SWP Frequency Indicator | 71 | 71 | 1 | Optional | A/N | Used with Liquidation Indicator =
"8". Not allowed with other indicators. 0 = Weekly 1 = Monthly 2 = Bi-monthly 3 = Quarterly 4 = Semiannual 5 = Annual 6 = Other |
Six-digit Variable Record Format:
| Field Name | Start | End | Len | Opt/Req | Type | Description |
| SWP Frequency Indicator | 294 | 294 | 1 | Optional | A/N | Used with Liquidation Indicator =
"8". Not allowed with other indicators. 0 = Weekly 1 = Monthly 2 = Bi-monthly 3 = Quarterly 4 = Semiannual 5 = Annual 6 = Other |
Eight-digit Y2K Fixed Record Format: Record 4
| Field Name | Start | End | Len | Opt/Req | Type | Description |
| SWP Frequency Indicator | 73 | 73 | 1 | Optional | A/N | Used with Liquidation Indicator =
"8". Not allowed with other indicators. 0 = Weekly 1 = Monthly 2 = Bi-monthly 3 = Quarterly 4 = Semiannual 5 = Annual 6 = Other |
Eight-digit Y2K Variable Record Format:
| Field Name | Start | End | Len | Opt/Req | Type | Description |
| SWP Frequency Indicator | 356 | 356 | 1 | Optional | A/N | Used with Liquidation Indicator =
"8". Not allowed with other indicators. 0 = Weekly 1 = Monthly 2 = Bi-monthly 3 = Quarterly 4 = Semiannual 5 = Annual 6 = Other |