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James Femia, DTCC Managing Director and Gunnar Niels, Economist, Oxera Consulting Ltd. | August 1, 2004


In the securities industry, the processing of corporate action events probably ranks last in terms of efficiency, automation, and standardization. Close to one million corporate actions take place every year worldwide.They happen each time a change is made to the capital structure or financial position of an issuer that affects any of the securities it has issued. Dividend payments, rights issues, tender offers, conversions, takeovers, mergers, and early redemptions are just a few examples.

A single event may involve hundreds of different market par- ticipants (including custodians, fund managers, broker/deal- ers, and depositories), ultimately cascading down to tens of thousands of investors. Each of these participants faces high risk because corporate action processing is complicated, deadline-driven, not standardized, and to a large extent still manual.

Download the Congressional Testimony: Corporate Action Processing: Complexity and Risk