By Terry Flanagan

DTCC Adopts Corporate Actions Standard

The Depository Trust & Clearing Corporation (DTCC) announced that it received its first inbound electronic message using ISO 20022, the global industry standard for financial messaging. This first automated instruction message was received from Interactive Brokers through DTCC’s Depository Trust Company (DTC) subsidiary.

DTC is the first financial market infrastructure to adopt the ISO 20022 format for corporate actions processing.

“DTCC is working collaboratively with clients to test electronic instructions for distribution event types,” said Rob Epstein, DTCC vice president, Asset Services. “In response to client feedback, DTCC developed the automated messaging process to help mitigate risks and reduce costs in corporate actions processing.”

Automating the instruction process by using ISO 20022 messaging will bring greater efficiency to corporate actions processing as it eliminates the manual touch points and the opportunity for error. In 2014, DTCC will also be introducing instruction statement reporting via ISO 20022. The instruction statement reporting message, known as the ‘CAST’ message, will allow firms to automate the tracking process for outstanding election balances.

Standardized messaging with a new browser-based user interface is part of DTCC’s overall Corporate Actions Transformation Initiative. The goal of the initiative is to transform corporate actions processing for the financial services industry and will be implemented in phases over the next three years.

Using the ISO 20022 messaging format helps firms reduce risks, enhance efficiencies and drive down costs related to corporate actions processing.

Separately, Italy’s central securities depository (CSD), Monte Titoli, has selected Swift’s MyStandards as its platform for standards-related communication to its customers.

The web-based collaborative standards management platform will enable Monte Titoli to streamline its management of and communication about user guidelines and message specifications – both ISO 15022 and ISO 20022 – supporting smooth adoption of its services for T2S and underpinning growth of its business with international customers.

Monte Titoli selected MyStandards following a standards gap analysis project performed by SWIFT consultants, which focused on the Italian depository’s use of ISO 15022 and ISO 20022 messaging. Monte Titoli will use MyStandards internally, for future gap analysis and schema definition, and as a single standards publication platform going forward.

“Monte Titoli continues to progress towards the implementation of T2S and the selection of SWIFT’s MyStandards will enable us to further streamline and improve the quality of our communications about standards with our existing and future clients,” said Paolo Cittadini, CEO of Monte Titoli.

Related articles

  1. Fitch Learning found 82% of women play down their personal and professional achievements.

  2. Acceleration of a systematic approach and performance-driven execution has been a big theme.

  3. FX Global Code has increased focus on FX execution quality.

  4. Daily Email Feature

    Trading in a World of VUCA

    By Clare Witts, Director, Market Structure, Asia Pacific, and Tom Augarde, Director, AES Coverage, Asia Pacifi...

  5. Some material changes have come out of ESMA’s review of algorithmic trading.