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:
- The three organisations will work together to build a corporate actions taxonomy, or classification, aligned with ISO 20022 repository elements. This new taxonomy will support a seamless transition from issuer-generated documentation to data, using XBRL technology. This will enable issuers to tag, or electronically capture and identify, key data such as the terms of a reorganisation when preparing documents for a corporate action.
- The data ‘tags’ and elements will be aligned with ISO 20022, permitting XBRL-tagged data to be readily converted into ISO 20022 messages.
- SWIFT will roll out the new ISO 20022 corporate actions messages on a global basis, which builds on the efficiencies gained through ISO 15022 adoption.
- DTCC will make all corporate action announcements it publishes available in the ISO 20022 format beginning in 2010. All existing legacy publication files will ultimately be decommissioned, expected to occur by 2015.
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