DTCC, SWIFT and XBRL US Join to Improve Corporate Actions Processing
The Depository Trust & Clearing Corporation (DTCC), SWIFT and XBRL US have partnered to fundamentally change corporate actions announcement processing, bringing greater accuracy and reduced risks and costs, by improving transparency and communication between issuers and investors. The collaboration will promote straight-through processing (STP) by electronically capturing data directly from issuers or offerors at the point that a corporate action is announced and in a standardised format.
“Together, we’re dedicated to fostering increased automation and transparency for US corporate actions announcements and to promoting best practices for global messaging standards,” said Donald Donahue, chairman and CEO, DTCC. “Through this joint initiative we have an opportunity, at last, to bring clarity to the often manual, labour intensive and unnecessarily risky business of interpreting information related to corporate action announcements. This is especially critical today when the market is seeking greater transparency of issuer information. DTCC places a high priority on our work with SWIFT and XBRL US to bring greater certainty and improve the communications chain on corporate actions announcements.”
The plan developed by DTCC, SWIFT and XBRL US looks to build on the existing ISO standards that have already brought important efficiencies in the corporate actions process by integrating the benefits of XBRL electronic data tagging technology, already used by public issuers in the US, to streamline the processing of corporate action announcements. It includes the following steps: