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Backgrounder on DTCC's Global Corporate Action (GCA) Validation Service

Overview
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 is open to all financial institutions - broker/dealers, banks, investment managers, hedge funds and any firm that tracks corporate action information and its impact on securities positions.

Benefits

• Reduces operational losses resulting from processing errors associated with conflicting or confusing corporate action data.
• Optimizes front-office trading by providing critical and timely information to individuals making trading decisions.
• Simplifies operations globally by eliminating manual, labor-intensive and redundant processing, providing the operational flexibility to handle volume fluctuations.
• Streamlines data sources by providing a single source for all corporate action announcement information.
• Provides easy access to information across broad, global organizations, allowing all individuals access to critical corporate action information via a web browser.

Features

• Coverage: With service centers in New York, London and Shanghai, the GCA Validation Service offers round-the-clock coverage and continuous corporate action announcement information from all global markets.
• Quality: A cross-border team of 60 highly skilled professionals with access to sophisticated tools, state-of-the art technology and the best data sources.
• Timeliness: Real-time access to corporate action announcement information sourced from data providers around the world - tracked and measured daily by stringent service level agreements with customers.
• Experience: Leverages DTCC's proven track record and 30+ years of experience in the corporate actions business, as well as local market expertise throughout Europe and Asia.
• Cost-Effective: Competitive pricing reflects DTCC's status as an industry-owned organization that operates at cost.
• Customer Service: Immediate customer support available 24 hours a day, every business day.

How Does the Service Work?
The service validates data through an intricate process of mapping, normalizing and consolidating announcement information - generally referred to in the industry as scrubbing. Skilled professionals then enrich the data through follow-up research, relying on a wide array of sources.

Customers can submit a "securities of interest" file and have the GCA Validation Service monitor and report on these specific securities throughout the day. Clear, comprehensive text about the corporate action, including information about restrictions that may apply, enable customers to pass the announcement record straight through to their investor clients or front-office trading desk.

Volume
The GCA Validation Service created 900,000 announcement records in 2004, its first full year of operation - close to 30% of these announcements involved securities outside the U.S.

And in 2004, DTCC's depository subsidiary processed a record $2.3 trillion worth of corporate actions, such as reorganizations, redemptions, dividends and interest payments.