DTCC has shared a new pilot program aimed at ushering in a new era of automation in the corporate actions (CA) process. This initiative promises to tackle longstanding challenges surrounding the sourcing of corporate action announcements and introduce unprecedented efficiencies and capabilities.
Also, the two-phase pilot, initiated by DTCC, seeks to streamline interactions within the Agent and Issuer community by standardizing and automating the sourcing of corporate action announcements. The overarching goals include eliminating manual processes, providing cost savings, reducing processing lead time, and mitigating risks associated with corporate actions.
DTCC Corporate Actions Automation
The initial phase, concluded in December 2023, focused on testing new inbound automated messaging for Issuers and Agents. During this phase, DTCC successfully implemented messaging capabilities based on the ISO 20022 standard. This allowed an Agent to submit an automated announcement to DTCC, which was then processed seamlessly through the system. The result was the generation of an ISO 20022 corporate actions announcement in a controlled test environment. This innovation effectively eliminates current manual processes, catering to Agents dealing with large event volumes or those transmitting events with substantial numbers of assets or notifications.
Phase 2 Set for Q3 2024
Moreover, building on the success of Phase 1, DTCC is going to launch Phase 2 of the pilot, with a scheduled test release in the third quarter of 2024. This phase will introduce a modernized Corporate Actions GUI portal, offering an intuitive interface for Redemption event types, including Partial/Full Calls and Maturities. Agents and Issuers will utilize this portal to transmit accurate and complete announcement event information. The overarching goal is to empower industry players to transmit standardized event information through a modernized interface, enhancing accuracy, removing manual validation processes, and eradicating delays in the industry.
Also, Ann Marie Bria, DTCC’s Managing Director and General Manager of Asset Services, expressed enthusiasm about the pilot’s potential impact, stating, “As the global financial industry becomes increasingly more complex, we see tremendous opportunity for increased automation and modernization within the corporate actions space. We are pleased to deliver this pilot, in direct response to client and industry feedback, to bring long-needed automation and standardization to the critical event notification process – increasing efficiency and accuracy.”
This initiative underscores DTCC’s commitment to driving innovation in the financial industry, addressing evolving challenges, and ultimately enhancing the efficiency and accuracy of critical processes. The financial community eagerly anticipates the continued success of DTCC’s pilot program and the transformative impact it could have on corporate action automation.
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