January 16, 2014

The Depository Trust & Clearing Corporation, http://www.dtcc.com/

DTCC’s Corporate Actions Transformation initiative introduces a major shift in the way The Depository Trust & Clearing Corporation (DTCC) communicates corporate actions information to its clients.

As the implementation of ISO 20022 for corporate actions messaging advances, TCS Financial Solutions, provides industry insights into the changes, benefits and challenges of DTCC’s Corporate Actions Transformation initiative.

“Why is the DTCC Corporate Actions transformation initiative important to the industry and your organization in particular?

TCS: TCS knows the initiative will bring harmonization of market practices at a global level and we welcome that. The industry will also see a significant reduction in risk along with faster automation of corporate actions processing. Additionally the engagement with the issuer community to make the necessary technological changes has been a key to the success of the initiative.

What do you want to tell clients regarding the changes taking place during the transformation and the movement towards ISO 20022 corporate actions messaging?

TCS: DTCC is improving workflow that in turn minimizes risk for everyone involved. The required data is provided from the source in the structured fields of the ISO 20022 messages. There will be less rekeying of the static data and that means there is a significant reduction for operational risk.

What types of benefits are being seen with the implementation of ISO 20022?

TCS: Standard messaging will go a long way to reducing misinterpretation, miscommunication and errors throughout the corporate actions processing chain. It will also increase the timeliness and accuracy of Corporate Actions information. Aligning DTCC’s transformation with global standards provides an opportunity to further mitigate risk and reduce errors with the potential for future operational efficiencies.

How has engaging with DTCC during the Corporate Actions transformation initiative helped to implement these important changes that are being made?

TCS: Dialogue with DTCC has been open and effective. We have found DTCC to be very helpful in answering questions our clients pose. DTCC’s timeliness and accuracy of their responses has been very good. We look forward to engaging in future discussions with the DTCC team.

What are some upcoming goals for your organization in regards to the initiative?

TCS: TCS BaNCS for Corporate Actions product strategy is to align with all Market changes enabling organizations to streamline processes, improve data quality, reduce risk and manage costs. This is achieved by automating the processes involved in the complete lifecycle of Corporate Actions processing starting from Announcement Capture and extending to the processing of Entitlements, Notifications, Response and Instructions, Reconciliation, Payments, Tax and Claims. The goal is to continue to drive automation, provide exceptions and mitigate risk through user-configured workflow.”

As published on http://www.dtcc.com/.  

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