About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Talk of the town

Subscribe to our newsletter

I never thought I’d be saying this, given the glacial pace of change in this particular sector of the market, but it seems that corporate actions has been the talk of the town recently. Not only has the DTCC been forging ahead with its plans for XBRL and ISO, reported in last month’s issue, but Swift has also been busy promoting its self-testing service for corporate actions messaging, STaQS, as well as contemplating its possible future involvement in the tax processing and class actions areas.

Swift corporate actions experts Max Mansur and Linda Bookheim took time out to discuss the initiatives that they have been involved in over the last 12 months and their plans for the near future – see this month’s lead story for more details. Following our lead story last month about the DTCC’s plans to spearhead a campaign for semantic interoperability between ISO and XBRL the US market, I also decided to ask around and find out what the general industry perceptions were of this idea.

For the most part, people seemed to be keen on the idea of forging compatibility between the two standards. For example, Amy Harkins from BNY Mellon said that introducing the XBRL protocol into the DTCC infrastructure would likely allow issuers and agents greater scope and capability in transmitting data consistently. Moreover, when this is coupled with the ISO format, it will likely provide the end user with cleaner, less ambiguous data as it will be in the appropriate format required by the standards of both messaging protocols, she explained. Edwin De Pauw from Euroclear likened the process of incorporating ISO standards into XBRL to an exercise that Euroclear went through around three years ago.

The aim of the Euroclear project was to standardise automated corporate actions flows across its markets but in some markets, like the UK, ISO messaging was not rich enough to accommodate the proposed pan-European standard and so it had to be modified in a similar process to the DTCC’s proposals. However, when asked to reflect on whether XBRL will gain traction in Europe as a result, De Pauw felt that market participants would probably stick with ISO. “I am not expecting XBRL to become a standard in Europe for corporate actions. But obviously, with so many US financial firms operating in Europe, we could see the coexistence of the two standards and this is why interoperability between the two is so important,” he said.

Regardless of the progress being made on the standardisation front, it has not been a good start to the year for many of the corporate actions processing vendors. For example, Broadridge’s Securities Processing Solutions reported a decrease of 4.3% in third quarter net revenues on the previous fiscal year in May, and Corero’s financial services division had an even worse time of it, with division revenues down overall for the first half of this year by 28.1% on last year’s figures for the same period.

It seems that despite all the sound and fury going on in the background, spending on vendor solutions for the corporate actions space has tailed off as the industry faces up to the ongoing economic crisis. It will certainly be interesting to talk to these vendors at Sibos in to see how they aim to overcome these barriers and potentially reposition themselves in the market. To that end, Sibos will also give Reference Data Review the opportunity to finally track down a representative from the back office division of Thomson Reuters, who so far this year has managed to elude us. Given that countless phone calls and emails have not worked, perhaps a bout of doorstepping is in order?

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: How to harness the power and potential of ownership data

The importance of ownership data has escalated over the past few years as financial institutions have acknowledged its potential. Key use cases include integrated risk assessment, which uses ownership data to help financial institutions gain a clear understanding of supplier and customer networks, and identify and mitigate risk. Equally significant is the use of ownership...

BLOG

GLEIF continues LEI push with mapping of S&P Global Company ID to the identifier

The Global Legal Entity Identifier Foundation (GLEIF) continues to promote use of the LEI through a collaboration with S&P Global Market Intelligence that certifies the mapping of the S&P Global Company ID to the LEI. GLEIF says links like this increase the value of the LEI by extending its connectivity to the world’s entity identifier...

EVENT

RegTech Summit APAC

Now in its 2nd year, the RegTech Summit APAC will bring together the regtech ecosystem to explore how capital markets in the APAC region can leverage technology to drive innovation, cut costs and support regulatory change. With more opportunities than ever before for RegTech to add value, now is the time to invest for the future. Join us to hear from leading RegTech practitioners and innovators who will share insights into how they are tackling the challenges of adopting and implementing regtech and how to advance your RegTech strategy.

GUIDE

Entity Data Management & the LEI

Just over a year since the Financial Stability Board handed over leadership and direction of the interim Global Legal Entity Identifier System – or GLEIS – to the Regulatory Oversight Committee (ROC) of the LEI the entity identifier is being used for reporting under European Market Infrastructure Regulation. This report discusses recent developments in the...