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DTCC and Broadridge Team Up to Automate Voluntary Corporate Action Instructions

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DTCC subsidiary The Depository Trust Company (DTC) has enhanced its Reorganizations service to offer an automated process for submitting instructions for voluntary corporate actions in ISO 20022 format. The service is designed to replace manual submission processes and is expected to reduce risk associated with human error and provide cost savings for clients.

Broadridge Financial Solutions is the first fintech provider to connect to the service, which will allow members of both DTCC and Broadridge Global Asset Servicing Solutions to manage and execute corporate action instructions around time-sensitive events in a more streamlined and efficient way, increasing straight-through-processing rates and minimising the risks of manual instructions.

Broadridge services more than 60 DTCC corporate actions clients and will provide end-to-end integration with ISO 20022 messages for corporate actions lifecycle entitlements.

After a testing period is completed, Broadridge expects to go live with DTCC’s automated solution early this year. The company will continue to help DTCC with testing to support mutual clients’ needs, and identify process enhancements and the best path to implementation.

“This new offering for Broadridge’s Global Asset Servicing Solutions increases straight-through-processing rates for voluntary corporate action instructions from financial advisors to agents,” says Michael Wood, head of asset servicing at Broadridge.

In a separate joint effort, Broadridge and DTCC are evaluating ways to achieve data standardisation for equity corporate actions events. The aim is to achieve a golden copy record of corporate actions announcements sourced from issuers, which can be disseminated to all market participants.

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