market data day 23/03/2011 - session 3 - challenges in corporate actions processing
DESCRIPTION
TRANSCRIPT
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CHALLENGES INCORPORATE ACTIONS PROCESSINGКлючевые задачи обработки корпоративных событий
MARKET DATA DAY
MARC SOMMERMOSCOW, 23 MARCH 2011
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AGENDA
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CORPORATE ACTIONS – AN OVERVIEW
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CORPORATE ACTIONS PROCESSING STEPS
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PAINPOINTS• Continued lack of unified standards / messaging /
formats
• More complex security and complex event types
• Non-standard announcements
• Events from emerging markets
• Complicated entitlements communications and processing
• Dealing with voluntary and elective actions
• Increased volume of reported corporate actions
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THE RISKS
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DATA QUALITY
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TWO SOLUTIONS:STANDARDISATION AND AUTOMATION
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STANDARDISATION
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DATA STANDARDS
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WHAT IS ISO 15022?• The International Organization for Standardization (ISO) is a
worldwide federation of national standards bodies
• ISO 15022 sets the principles and standards of corporate actions that enables the securities industry to design messages on the basis of ISO 15022 syntax and message design rules, a dictionary of data fields, and a catalogue of messages
• SWIFT is the ISO 15022 Registration Authority
• ISO 15022 MT 564 Corporate Action Notification and MT 568 Corporate Action Narrative messages are available
• Moving to 20022 XML
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WHAT ARE WE TALKING ABOUT? CASH DIVIDEND GOLDMAN SACHS EXAMPLE{1:F01REUTGB210XXX0000000000}{2:O5641448110321REUTGB210XXX00010000031103211448N}{4::16R:GENL:20C::CORP//0300000001090570:20C::SEME//0300000002663108:23G:NEWM:22F::CAEP//DISN:22F::CAEV//DVCA:22F::CAMV//MAND:98C::PREP//20110321144853:25D::PROC//COMP:16S:GENL:16R:USECU:35B:ISIN US38141G1040/GB/2407966GOLDMAN SACHS GROUP ORDUSD 0,01:16R:FIA:94B::PLIS//EXCH/XNYS:16S:FIA:16R:ACCTINFO
:97A::SAFE//NONREF:16S:ACCTINFO:16S:USECU:16R:CADETL:98A::ANOU//20110118:98A::XDTE//20110228:98A::RDTE//20110302:22F::DIVI//INTE:16S:CADETL:16R:CAOPTN:13A::CAON//001:22F::CAOP//CASH:17B::DFLT//Y:92F::GRSS//USD0,35:16R:CASHMOVE:22H::CRDB//CRED:98A::PAYD//20110330:16S:CASHMOVE:16S:CAOPTN-}
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MAJOR BENEFITS
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AUTOMATION
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REQUIREMENTS
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CORPORATE ACTIONS AUTOMATION DRIVERS
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CORPORATE ACTIONS AUTOMATION
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KEY PLAYERS IN CORPORATE ACTIONS AUTOMATION / PROCESSING
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THE FUTURE
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ISO 20022 – UNIVERSAL FINANCIAL INDUSTRY MESSAGE SCHEME
Source: ISO
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ADVANTAGES ISO 20022 BRINGS OVER ISO 15022• Builds on the ISO 15022 data dictionary concept and
registration infrastructure, but strengthens the monitoring by the industry
• Uses a more robust, syntax independent development methodology based on UML modelling of business processes and transactions
• Uses XML as the syntax for the actual physical messages
• Has a wider scope than ISO 15022, which is only for securities messages
• Is in line with directions taken by other industries (UN/CEFACT)
Source: ISO
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QUOTE
This limits the ability to truly automate corporate actions and is
the reason I’m aproponent of ISO 20022
A pro-ISO 20022 European head of operations, when commenting on the free text aspect of ISO 15022
Source: A-Team Group
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QUESTIONS?
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HOW WE CAN HELP
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CORPORATE ACTIONS TEAMS
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COVERAGE – DEPTH, BREADTH, COMPLETENESS AND TIMELINESS