Corporate actions still widely processed manually, SIX survey finds
08 September 2021 UK
Image: IRStone
More than three-quarters (78 per cent) of global asset managers, wealth managers, custodians, clearing houses and investment banks still process part of their corporate actions manually, according to a new survey conducted by SIX, the Swiss Stock Exchange.
The survey, included in a whitepaper entitled Corporate Actions Processing, finds that just under half of all respondents (49.1 per cent) cite legacy technology as their greatest challenge standing in the way of them automating their corporate actions processing.
Despite the current lack of automation, 47 per cent of respondents say they were looking for the near real-time delivery of corporate actions.
There was a significant change, however, in the number of respondents looking for intraday delivery of corporate actions ? 30.9 per cent in 2021, up from 12.9 per cent in 2020.
“What these results show is that there is apparently new demand for corporate actions data delivered at various intervals during the day”, SIX affirms.
“The increase in number wanting nearer to real-time delivery of corporate actions is in conjunction with important business drivers for increased automation of corporate actions processing, with respondents highlighting reduced operating costs and regulatory compliance as the two most important factors” it adds.
The survey also finds that in terms of asset class focus, market participants are looking for additional detail around their corporate actions, specifically when it comes to equities and fixed income.
Commenting on the results, Annelotte De Nanassy, senior product manager, financial Information at SIX, says: “There has never been a more pressing need to process the corporate actions messages accurately and efficiently, but this can only be achieved through automation. Ultimately, firms need to integrate high-quality data and timeliness in the provision of that data to maximise the automation of front and back-office operations.”
SIX’s survey was conducted from March until May 2021 across Europe, North America and APAC for the second consecutive year.
The survey, included in a whitepaper entitled Corporate Actions Processing, finds that just under half of all respondents (49.1 per cent) cite legacy technology as their greatest challenge standing in the way of them automating their corporate actions processing.
Despite the current lack of automation, 47 per cent of respondents say they were looking for the near real-time delivery of corporate actions.
There was a significant change, however, in the number of respondents looking for intraday delivery of corporate actions ? 30.9 per cent in 2021, up from 12.9 per cent in 2020.
“What these results show is that there is apparently new demand for corporate actions data delivered at various intervals during the day”, SIX affirms.
“The increase in number wanting nearer to real-time delivery of corporate actions is in conjunction with important business drivers for increased automation of corporate actions processing, with respondents highlighting reduced operating costs and regulatory compliance as the two most important factors” it adds.
The survey also finds that in terms of asset class focus, market participants are looking for additional detail around their corporate actions, specifically when it comes to equities and fixed income.
Commenting on the results, Annelotte De Nanassy, senior product manager, financial Information at SIX, says: “There has never been a more pressing need to process the corporate actions messages accurately and efficiently, but this can only be achieved through automation. Ultimately, firms need to integrate high-quality data and timeliness in the provision of that data to maximise the automation of front and back-office operations.”
SIX’s survey was conducted from March until May 2021 across Europe, North America and APAC for the second consecutive year.
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