DTCC Connection

Jan 15, 2014 • DTCC Connection

DTCC Corporate Actions Transformation Client Workshop Educates Clients and Promotes Industry Dialogue

By Jessica York
(l to r) Paul Addamo, Area Lead, Application Development & Maintenance, DTCC, Barbara Edwards, Director, DTCC Learning, Robert Epstein, VP, Product Management, DTCC.

Over 80 clients representing more than 45 firms attended The Depository Trust & Clearing Corporation’s (DTCC) Corporate Actions Transformation Client Workshop held in Jersey City. The forum served as a platform for DTCC to help corporate actions clients and vendors gain a better understanding of the new functionality and the timeline leading up to the June migrations of ISO 20022 and the new client corporate actions web browser.

Clients offered DTCC valuable feedback as the Corporate Actions Transformation initiative enters the third of its five phases. “Client collaboration and feedback will play an essential role as the June migration date approaches,” said Rob Epstein, DTCC Vice President, Asset Services. “DTCC is here to support clients through these migrations.”

The Corporate Actions Transformation Initiative began in 2010 and is projected to conclude in 2016. Phases one and two, effecting announcements, resulted in the implementation of a new data model and updated internal systems to support ISO 20022 messaging. Phases three, four and five will impact the processing of distribution events, redemption events and reorganization events respectively. Phase three will conclude in 2014 with the mandated conversion to a new Corporate Actions (CA) Web for distribution event types followed by the introduction of phases four and five.

The initiative introduces a major shift in the way The Depository Trust Company (DTC), a user-owned subsidiary of DTCC that is responsible for holding deposited securities owned by participants, communicates corporate actions information to its clients. The transformation initiative will help clients improve their straight-through-processing rates and will also provide them with tools to better manage risk. It also enables DTC to drive market practice and standardization for corporate actions processing.

Attendees Highly Engaged in Discussions

Dan Thieke, DTCC Managing Director and General Manager Settlement & Asset Services delivered the keynote speech for the event. Thieke provided a brief history of DTCC before launching into a progress report on DTCC’s Corporate Actions Transformation initiative and a preview of milestones to come.

DTCC speakers provided an overview of the benefits and connectivity of the CA Web, information on the ISO 20022 lifecycle and message connectivity, and key updates on upcoming phases of the transformation initiative. The Corporate Actions Learning Center and its full suite of training tools were also covered. Hands-on CA Web demonstrations were offered to the audience of enthusiastic participants. “Clients were engaged and very interested,” said Epstein.

DTCC clients PNC Bank, Brown Brothers Harriman and the Industrial and Commercial Bank of China addressed the merits of the Corporate Actions Transformation initiative during a panel discussion moderated by Steve Sloan, DTCC Director, Product Management. When asked about the benefits of the transformation, Caleb Lanfear, Brown Brothers Harriman Assistant Vice President included increased speed to market and risk mitigation as key achievements. Lanfear also praised the “major increase in the amount of structured data” that BBH is able to take in as a result of the transition to ISO 20022 messaging.

Vendors, including the International Securities Association for Institutional Trade Communication (ISITC), SunGard, the Society for Worldwide Interbank Financial Telecommunication (SWIFT), and Volante Technologies also updated attendees on the ways their organizations are helping users adapt to the initiative’s various phases during presentations interspersed throughout the program.

A vendor gallery comprised of displays by Information Mosaic, ISITC, the Securities Industry and Financial Markets Association (SIFMA), SunGard, SWIFT, TCS Financial Solutions / Tata Consultancy Services, Volante Technologies, and XBRL was open to attendees during the event. Campbell Pryde, XBRL President and CEO described the workshop as “an invaluable event to catch up with what is happening with ISO20022 in the U.S.”

To watch a story on the Workshop visit: Click here to watch the video.

For more information:
DTCC’s Robert Epstein Discusses the Corporate Actions Transformation Initiative, its Rebrand, Upcoming Benchmarks

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