With the recent completion of the third phase of The Depository Trust & Clearing Corporation’s (DTCC) multi-year Corporate Actions Transformation initiative, clients are now experiencing the full impact of efforts to modernize the way corporate actions are processed.
Earlier phases of the project focused on establishing the technology foundation for supporting ISO 20022 messaging and, in 2014, launching a new browser-based user interface, called Corporate Actions Web (CA Web). The completion of Phase 3, which focuses on the lifecycle of distribution events, such as principal and interest, cash and stock dividends, and others, resulted in migrating more than 6,500 clients to the new CA Web. Equally significant, for the first time, clients can submit instructions to DTCC electronically, via ISO 20022 messaging.
“The retirement of ten PTS/PBS functions in favor of CA Web is a big step toward modernizing our corporate actions product with today’s technology,” said Ann Marie Bria, Vice President, DTCC Asset Services. “CA Web consolidates onto one platform the functionality that was previously spread across several disparate systems. This one-stop offering significantly improves the user experience and enhances efficiencies for our clients.”
Migration to CA Web: Increased Efficiencies, Reduced Risk
CA Web features event search and export to Excel, intuitive navigation and an extensive library of embedded multimedia help files. Further, the CA Web dashboard details important, time-sensitive corporate action data and makes it all easily accessible. These key features are helping clients increase efficiencies and better manage their risk exposure when processing corporate actions transactions.
Client input was a key driver behind CA Web’s ease-of-use. Throughout the design and testing process, DTCC collected extensive feedback, making iterative revisions and modifications based on those recommendations.
“The level of collaboration and partnership has resulted in positive and enthusiastic reviews from clients,” said Bria. “We appreciate the client feedback we received at every step because it helped us create a more robust service and better user experience.”
DTCC Processes Its First Electronically Submitted Instruction for Distributions
In early April, DTCC received and processed its first ISO 20022 electronic instructions for distribution events. DTCC processes approximately 500,000 of these instructions annually; previously, clients had to enter these manually into DTCC’s systems. On peak days, that could mean thousands of manual submissions for clients.
“Firms recognize that automating this manual process offers them significant returns in efficiency and risk reduction,” said Bria. “We have a healthy pipeline of clients testing instructions and expect more to sign on in the coming months.”
Redemptions Lifecycle Phase is in Full Swing
With the cornerstones of Corporate Actions Transformation – ISO 20022 and CA Web – fully operational, the development team is already at work on Phase 4, focusing on redemption event processing. DTCC anticipates that ISO 20022 messages for lifecycle processing of redemption events will be available for testing in Q3 2015, with new browser features and further enhancements expected to be introduced in 2016.
The final phase of the initiative will focus on the lifecycle of reorganization events, such as tenders and exchange offers, and will include updates to the CA Web and ISO 20022 messaging for that event group.
For more information: DTCC Corporate Actions Processing