DTCC today announced a pilot program to further automate the corporate action (CA) process, providing new efficiencies and capabilities that address decades of asset services challenges in procuring corporate action notices.
The two-phase pilot aims to streamline interactions across the Agent and Issuer community by standardizing and automating the procurement of corporate action notices, eliminating manual processes, delivering cost savings, reducing processing lead time and mitigating risk .
Phase 1 of the pilot program, which ended in December 2023, tested new inbound automated messages for publishers and agents. As part of this successful trial, DTCC provided ISO 20022 messaging capabilities that allowed an Agent to submit an automated announcement to DTCC.
DTCC was then able to automate the processing of this notice through their system and generate an ISO 20022 corporate action notice to their client in a test environment. The messaging solution removes the current manual processes and is aimed at Agents with high volumes of events or those who want to send events with a large number of items or event notifications.
DTCC plans to launch Phase 2 of the pilot with a planned trial launch in Q3 2024. In this phase, companies will test a modernized Corporate Actions GUI portal. The new portal will provide an easy-to-use interface for Redemption event types such as Partial/Full Calls and Expirations that Agents and Issuers can use to communicate accurate and complete announcement event information.
The goal is to provide Agents and Issuers with the ability to transmit standardized event information through a streamlined interface, increasing accuracy, eliminating manual validation processes and eliminating delays in the industry.
“As the global financial industry becomes increasingly complex, we see tremendous opportunities for increased automation and modernization in corporate operations. We are delighted to deliver this pilot, in direct response to customer and industry feedback, to bring long-needed automation and standardization to the critical incident notification process – increasing efficiency and accuracy,” said Ann Marie Bria, Managing Director, DTCC General Manager. Asset Services.