Join us for the latest DTCC Insights podcast, where the state of corporate actions is front and center.
Tim Lind, Managing Director, DTCC Data Services hosted Dan Doney, Managing Director, CTO, DTCC Digital Assets and Barnaby Nelson, CEO, Value Exchange to get unique insights from across the financial services landscape and share why it takes an entire industry to move corporate actions forward.
Key Takeaways:
- A Stagnant State: Despite technological advancements, the corporate actions industry has remained largely unchanged, leading to significant inefficiencies and costs. A major issue is the lack of accountability and communication between issuers, investors and portfolio managers.
- The Cost of Inefficiency: The current system's inefficiencies are estimated to cost the industry billions of dollars annually. The total cost of corporate action processing in the U.S. is estimated to be $58 billion per year.
- Digital Developments: Blockchain technology and smart contracts have the potential to improve the efficiency and transparency of corporate actions. However, the complexity of implementing these technologies and the need for alignment across various systems are highlighted.
- A Standard Approach: The industry needs to collaborate, with one possible solution deriving from a bridge between traditional finance and digital finance. Either way, standardized messaging protocols are a must, but several challenges exist.
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