Look for some savings on processing fees if you use Fund/SERV. The National Securities Clearing Corporation (NSCC) has filed with the Securities and Exchange Commission to reduce its charges for mutual fund processing.
The new fee schedule is effective from January 1 and is retroactive so it will be reflected in the February billing for clients.
The NSCC is cutting its Fund/SERV transaction fees by a nickel to $0.25 from $0.30. It claims that this reduction will save members $3.6 million.
David M. Kelly, ceo of the NSCC, explained that the reductions are a result of "high trading volumes" in 1998.
"Management felt it was timely and appropriate to recommend to the Board certain fee reductions in those areas which have directly contributed to our revenue growth," Kelly said.
Since the NSCC is a not-for-profit organization, it only keeps revenues required to support its operations and development efforts. The remainder of its revenues are returned to those using its services in the form of fee reductions or discounts.
In the past the NSCC has typically reduced fees every two years, although recent increases in trading volume have led to fee reductions for each of the last two years.
The NSCC is also reducing fees for certain equity clearing and settlement services. The fee for equity trade recording was cut to $0.006 from $0.008 and the fee for equity trade comparison was cut to $0.010 from $0.018. Flip trade fees are being dropped to $0.025 from $0.05. 
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