Waterfall processing is the latest enhancement to the Shareholder Accounting System. The Shareholder Accounting System allows dividends to accrue on a daily basis for all accounts with positions in Money Market Funds for the period of time between monthly dividend postings. The waterfall processing capability allows clients to offer end investors a diversified sweep money fund product. Clients have the ability to define up to five additional money market sweep funds for purchase at the fund level.
Given that more clients are now offering investors money market bank products, waterfall processing offers investors the ability to hold multiple money market funds without exceeding the FDIC limits, thereby limiting risk exposure. Clients have the opportunity to define a maximum share amount per fund to be purchased. Once this amount is reached the system will automatically purchase into secondary funds.
"We strived to view the accounting system from the perspective of our clients and by doing so we realized the value waterfall processing would bring to our clients' customers," said Charles Marchesani, General Manager, Brokerage Processing Services. "We will continue to deliver product enhancements to increase efficiency for our clients and help them achieve their business goals."