DTCC Launches Third Phase of Corporate Actions Overhaul
The Depository Trust & Clearing Corp. (DTCC) has moved into the third phase of its corporate actions messaging overhaul with a new corporate actions pilot program intended to test ISO 20022 messages that incorporate all stages of distribution events from entitlements and payments to instructions.During the first two phases of the overhaul, DTCC officials upgraded the user interface platform to support more data types, and worked with financial messaging services provider SWIFT to develop a suite of corporate action messages in the ISO 20022 format. The first pilot program testing ISO 20022 corporate action announcements launched in April 2011 with implementation of the messages underway by November 2011.
This latest pilot is part of the DTCC’s reengineering effort to replace DTCC’s proprietary files with ISO 20022 standard messages, officials say. BNY Mellon, Brown Brothers Harriman, JPMorgan Chase, and National Financial Services have been participating in the DTCC’s corporate actions overhaul.
During the first three months of the pilot, the DTCC will send out sample ISO 20022 messages to the pilot participants, officials say. The participating firms will then be able to validate their development and the message formats. During the first quarter of 2013, the DTCC will move the effort into production and will send the ISO messages systemically, alerting the test pilot firms to information about distributions entitlements and payments and enabling them to do more testing.
Also next year, the DTCC will also test inbound ISO 20022 messages for election processing for Elective Dividend Services (EDS) events, officials say. The EDS support allows DTCC clients to view and send election instructions to DTCC for processing.
The corporate actions processing overhaul will also include the mandatory migration in 2013 of all DTCC participants to the new browser-based user interface for distribution events. The new browser interface, which will replace DTCC’s Participant Terminal System (PTS) and Participant Browser Service (PBS), will offer a single unified corporate actions platform that will incorporate all event types, officials say. The DTCC will also offer customers training sessions and webinars on the new interface.
“This represents the first time DTCC is able to take inbound customer ISO 20022 messages in distribution events, further reducing risk and cost in corporate action processing and moving us closer to straight-through processing,” says Daniel Thieke, DTCC managing director, Asset Services, in a prepared statement. The DTCC has been conducting webinars and testing the new browser-based user interface for the past year, he says.
Agincourt Embraces Indata’s iPM
The Richmond, Va.-based investment manager Agincourt Capital Management has selected Indata’s iPM—Intelligent Portfolio Management platform for its investment accounting needs, according to Indata officials.
The firm developed three criteria in its search for a new system, says B. Scott Marshall CFA, director, portfolio manager for Agincourt, which has more than $4 billion in assets under management. First, the system must take advantage of the best existing technology and, secondly, the system must be “open and dynamic,” says Marshall in a prepared statement. The third criterion is that the “system must fit our process from the trading desk to the back office.”
Indata provides software and services for buy-side firms including trade order management (OMS), compliance, portfolio accounting and front-to-back office support.
iPM’s database architecture provides access to data and the tools to work with the data, officials say. For reporting, iPM utilizes MS SQL Server Reporting Services (SSRS) as its native report writer which offers complete control of report customization and output.
FinAnalytica Offers Risk Controls via Managed Services
FinAnalytica, a provider of multi-asset class, performance analytics for investment managers, has launched nCognity Managed Services, which adds full data management, portfolio analytics, reporting and consulting to the hosted Cognity ASP risk management and portfolio construction platform.
nCognity will offer buy-side clients such as hedge funds, pension funds, endowments and other institutional investors access to tailored risk solutions and a suite of outsourced services, including selected data management and analytical tasks to full day-to-day turnkey risk operations.
Bond Trading Platform Has Post-Trade Support
The new iTBconnect platform from iTB Holdings that helps institutional investors connect to electronic fixed income trading venues also offers post-trade processes for straight through processing (STP) that enables clients to automate post trade booking and reporting, officials say. The iTBconnect software also can take security position downloads and maintain portfolio risk and real-time profit/losses for clients.
SunGard Platform Combines Front- & Middle-Office Functions
SunGard’s recently launched Asset Arena 360 combines front and middle office processes onto a single platform that targets boutique asset managers that need to control their operation al costs, raise assets and better manage due diligence and compliance, say officials.
SunGard’s Asset Arena 360 supports portfolio analysis and simulation; compliance monitoring; risk management; trade execution and performance attribution; client reporting and back-office reconciliation. Asset Arena 360 is available as either a software-as-a-service (Saas) or as installed system.
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