JP Morgan Securities Chooses DTCC'S GCA Validation Service
JP Morgan Securities, Inc. has chosen DTCC’s Global Corporate Action (GCA) Validation Service to drive auto-mation and straight-through processing for its corporate action announcements.
The GCA Validation Service provides a centralized source of “scrubbed” information about corporate actions, including tender offers, conversions, stock splits, and nearly 100 other types of events for equities and fixed-income instruments traded in Europe, Asia-Pacific and the Americas. The service delivers comprehensive and timely information, helping to reduce operational losses, optimize front-office trading and streamline operations for financial institutions worldwide. It is provided through Global Asset Solutions LLC, a DTCC subsidiary.
“DTCC’s 30-plus years of experience processing corporate actions, combined with the GCA Validation service centers in Europe, Asia and North America, were important factors in our decision to go with this service,” said Joseph M. Liguori, vice president, Investment Bank, JP Morgan Securities, Inc. “The GCA Validation Service will enable us to simplify our operations globally, giving us a single source for all corporate action announcements, eliminating manual, redundant processing.”
JP Morgan Securities, Inc. joins a number of other major global financial institutions using the GCA Validation Service, including Credit Suisse First Boston.
“We’re seeing growing interest in the GCA Validation Service as many leading broker/dealers, banks, investment managers and hedge funds are planning to begin using the service over the next several months,” said James Femia, DTCC managing director and head of the Global Corporate Action business. “Given the increasing volume of corporate actions in the marketplace, the service fills a real need for a single source of information.”
In 2004, DTCC’s depository subsidiary processed a record $2.3 trillion worth of corporate actions for its customers.
Corporate actions are one of the last significant areas of risk associated with largely manual and non-standardized processing in the securities industry. According to a 2004 study sponsored by DTCC and conducted by Oxera, an economics consultancy in Europe, the risk from just one complex corporate action event could run into tens of millions of euros for individual securities firms – and multi-billion euros for the global securities industry. @
[Editor’s Note: For more information on the GCA Validation Service, please contact Susan Spivey at (212) 855-4144 or sspivey@dtcc.com.]