The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

DTCC Releases New ISO Messages to Help Automate Corporate Actions Processing

Share article

The Depository Trust & Clearing Corporation (DTCC) today announced the release for public comment of the first drafts of its new corporate actions messages to support the processing of the entire lifecycle of a corporate action including entitlements, elections and payments. In 2009, DTCC processed more than US$3 trillion in corporate actions, and the release of these draft messages is a key element in DTCC’s plan to automate and streamline corporate actions processing.

DTCC, working closely with Swift, a global provider of secure financial messaging services and the ISO 20022 (International Organisation for Standards) Registration Authority, has defined how it will implement new extensible corporate actions messages using the new ISO 20022 standard. ISO 20022 provides the financial services industry with a common platform for the development of messages in a standardised syntax and defines a number of key elements used in messaging. Additional data fields can be included by using what are called ‘extensions.’ DTCC has defined what additional information will be included in these extensions and how they will be formatted for corporate actions messaging.

The new set of documentation follows the release earlier this year of the first draft of extensible corporate action announcement messages and completes the planned suite of DTCC corporate action messages in the ISO 20022 format.

“We now have all our corporate actions messages drafted and will continue to work with the industry toward creating a more standardised model,” said Patrick Kirby, DTCC managing director, Asset Services. “These messages will automate and streamline the processing of corporate action messages, bringing major new efficiencies to the industry as a whole.

“All our corporate action ISO messages for announcements will be in place in 2011, and DTCC customers, including our Global Corporate Action Validation users, can begin using them,” he said. “These corporate action announcement messages will provide DTCC’s clients with intra-day enhanced data as early as next year.”

The ISO 20022 messages are part of DTCC’s corporate actions reengineering initiative that will be phased in during the next several years. The initiative will replace the 60 legacy DTCC systems that currently support corporate actions and will create a single new platform that allows users to manage their entire corporate action lifecycle from announcements through instructions to payments.

In addition to the draft messages for the entire lifecycle of a corporate action, DTCC also released for comment today new corporate action event templates, as well as corporate action event scenarios. The event templates list the data elements by event type supported by DTCC for the US market. Corporate action scenarios identify all event mapping scenarios, which are especially useful where there is no simple one-to-one mapping between legacy files and ISO 20022.

The Depository Trust Company (DTC), a DTCC subsidiary, holds in custody an estimated 90 percent of all US securities, valued at US$33.9 trillion, and helps DTCC customers process millions of corporate actions a year, ranging from routine dividend, principal and interest payments to corporate mergers involving billions of dollars.

“We’re urging our corporate action customers to review these new documents carefully in the next several months and provide us with their input,” said Kirby. “We want to ensure that the industry helps shape the final documents and the new standards.”

Related content

WEBINAR

Recorded Webinar: Last minute preparations for SFTR: What still needs to be done and are we ready?

The regulation clock is ticking. Financial firms, especially those subject to Phase I of implementation, are well aware of the impending April 2020 deadline for the Securities Financing Transactions Regulation. The question is, are they ready? Tactical, i.e painful, approaches to compliance won’t be good enough. A strategic plan of attack is necessary to combat...

BLOG

COVID-19 Sees CUSIP Requests Surge as Corporate Borrowers Seek Liquidity

Request volume for CUSIP’s corporate debt identifiers was up 6% last month, marking a spike of interest as corporate borrowers seek access to liquidity during the challenging climate of COVID-19. The CUSIP Issuance Trends Report for March 2020, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets...

EVENT

RegTech Summit Virtual

The RegTech Summit Virtual which took place in June 2020 was a huge success with over 1,100 delegates registered. We are currently working on our plans for 2021 and we hope to be back with an in-person event. Whatever the future holds you can guarantee our 2021 event will be back with an exceptional guest speaker line up of Regtech practitioners, regulators, start-ups and solution providers to collaborate and discuss innovative and effective approaches for building a better regulatory environment. Can't wait until 2021? make sure you sign up to our RegTech Summit Virtual, November 2020. More info...

GUIDE

Entity Data Management Handbook – Sixth Edition

High-profile and punitive penalties handed out to large financial institutions for non-compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations have catapulted entity data management up the business agenda. So, too, have industry and government reports on the staggering sums of money laundered on a global basis. Less apparent, but equally important, are...