DTCC is running a pilot scheme to further automate the corporate actions process. The pilot includes two phases and aims to streamline interactions across the agent and issuer community by standardising and automating the sourcing of corporate actions announcements. This should eliminate manual processes, provide cost savings, reduce processing lead time and mitigate risks.
The company is working with S&P Global Market Intelligence and other large firms in the financial services industry on the pilot.“As the global financial industry becomes increasingly more complex, we see opportunity for increased automation and modernisation within the corporate actions space,” says Ann Marie Bria, DTCC managing director, general manager for asset services. “This pilot is a direct response to client and industry feedback to bring long-needed automation and standardisation to the critical event notification process, increasing efficiency and accuracy.”
Phase 1 of the pilot, which was completed in December 2023, tested new inbound automated messaging for issuers and agents. As part of this successful test, DTCC provided messaging capabilities modelled on the ISO 20022 standard that enabled an agent to submit an automated announcement to DTCC. DTCC was then able to automate the processing of that announcement through its system and generate an ISO 20022 corporate actions announcement to its client in a test environment.
DTCC plans to launch Phase 2 of the pilot with a scheduled test release in Q3 2024. In this phase, firms will test a modernised corporate actions GUI portal. The portal will provide an easy-to-use interface for redemption event types that agents and issuers can use to transmit accurate and complete announcement event information.
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