New research estimates that incomplete or incorrect corporate actions information poses a front-office trading risk of between EUR1.6 billion and EUR8 billion annually, while firms individually may face back-office processing risks amounting to tens of millions of euros from mishandling a single, complex corporate action event. The research was conducted by U.K. analysts Oxera, and was sponsored by DTCC. The report found two primary areas of risk facing all market participants. First, errors in the downstream flow of information. This is due to the lack of a standard way for issuers to announce events, the lack of a single securities identification system, the fact that different sources of information are often inconsistent, and that processing details and terminology are often highly specific to a particular market or instrument. Second, errors in the upstream flow of instructions. Here, the report said, “the sheer number of different financial intermediaries (custodians, fund managers, broker/dealers, and depositories) involved in any one event requires a complex chain of communications (with many instructions delivered via phone, fax, telex or unformatted e-mail, and processed manually).”
A-Team Insight Blogs
Corporate Actions Represent Major Risk to Global Marketplace
Recorded Webinar: Entity identification and client lifecycle management – How financial institutions can drive $4 billion in cost savings
A new model in Legal Entity Identifier (LEI) issuance has created significant opportunities for financial institutions to capitalise on their KYC and AML due diligence. By becoming Validation Agents and obtaining LEIs on behalf of their clients, financial institutions can enhance their client onboarding experience, streamline their internal operations, and open the door to new,...
A big day in the City last Friday as the London Stock Exchange Group (LSEG) completed its all-share acquisition of Refinitiv first mooted back in July 2019. The acquisition is expected to create a leading, UK-headquartered, global financial market infrastructure provider with a strong data and analytics business, significant capital market capabilities across multiple asset...
The Data Management Summit Virtual will bring together the global data management community to share lessons learned, best practice guidance and latest innovations to emerge from the recent crisis. Join us online to hear from leading data practitioners and innovators from the UK, US and Europe who will share insights into how they are pushing the boundaries with data to deliver value with flexible but resilient data driven strategies.
Need to know all the essentials about the regulations impacting trading infrastructure? Welcome to the first edition of our A-Team Trading Regulations Handbook which provides all the essentials about regulations impacting trading operations, data and technology. A-Team’s Trading Regulations Handbook is a great way to see at-a-glance: All the regulations that are impacting trading technology...