DTCC completes first phase of corporate actions pilot
06 March 2024 US
Image: AdobeStock/mageFlow
DTCC has reached the mid-point of a pilot project designed to enhance STP rates and to deliver further automation to corporate actions processing.
The first phase of the pilot, which was completed in December 2023, tested new inbound automated message for processing corporate actions, with DTCC offering ISO 20022 standard message capability which enables an agent to submit an automated CA announcement to DTCC.
Phase 2 of the pilot is scheduled to begin in Q3 2024. Participating firms will test a modernised corporate actions graphic user interface, providing an interface for redemption events such as partial and full calls.
According to DTCC, the aim in Phase 2 is to enable agents and issuers to transmit standardised event information via a modernised portal, improving processing accuracy, eliminating delays and removing manual validation processes.
DTCC managing director and general manager for asset services Ann Marie Bria says: “As the global financial industry becomes increasingly more complex, we see tremendous opportunity for increased automation and modernisation within the corporate actions space.
“[We] deliver this pilot, in direct response to client and industry feedback, to bring long-needed automation and standardisation to the critical event notification process – increasing efficiency and accuracy,”
Bidhu Rusia, director of corporate actions at S&P Global Market Intelligence, adds: “After the successful completion of phase 1 with DTCC, we welcome their continued collaboration with the industry to proactively initiate phase 2 of the pilot.
“Ultimately, our goal is to revamp the end-to-end corporate actions event structure to more efficiently capture source data and provide a more reliable, sustainable, and secure foundation for the future processing landscape.”
The first phase of the pilot, which was completed in December 2023, tested new inbound automated message for processing corporate actions, with DTCC offering ISO 20022 standard message capability which enables an agent to submit an automated CA announcement to DTCC.
Phase 2 of the pilot is scheduled to begin in Q3 2024. Participating firms will test a modernised corporate actions graphic user interface, providing an interface for redemption events such as partial and full calls.
According to DTCC, the aim in Phase 2 is to enable agents and issuers to transmit standardised event information via a modernised portal, improving processing accuracy, eliminating delays and removing manual validation processes.
DTCC managing director and general manager for asset services Ann Marie Bria says: “As the global financial industry becomes increasingly more complex, we see tremendous opportunity for increased automation and modernisation within the corporate actions space.
“[We] deliver this pilot, in direct response to client and industry feedback, to bring long-needed automation and standardisation to the critical event notification process – increasing efficiency and accuracy,”
Bidhu Rusia, director of corporate actions at S&P Global Market Intelligence, adds: “After the successful completion of phase 1 with DTCC, we welcome their continued collaboration with the industry to proactively initiate phase 2 of the pilot.
“Ultimately, our goal is to revamp the end-to-end corporate actions event structure to more efficiently capture source data and provide a more reliable, sustainable, and secure foundation for the future processing landscape.”
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