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Where the (Corporate) Action Is

The DTCC initiative with SWIFT and XBRL US to move issuers to electron-ically tag corporate actions documents using XBRL will inevitably impact the future of the GCA VS business, according to Chris Childs, DTCC managing director, Asset Services.

The initiative’s goal is to have U.S. corporations adopt XBRL to tag corporate actions information so that it can flow directly into ISO 20022 messages. This will allow issuers and offerors to publish computer-readable corporate action announcements that can be distributed to financial intermediaries and issued immediately to investors in a straight-through process.

“Clearly, if we were able to get XBRL generally adopted, it would be a huge win for the industry,” said Childs. “It would also impact a validation service like GCA. However, I think that adoption of XBRL will take some time in the U.S. and around the globe, so I expect GCA VS to have a market for many years to come. And in the meantime, GCA VS offers the industry a robust solution for this challenging, risk-prone area of the business.”