Dominique Tanner at SIX Financial Information explores complex corporate actions in another edition of the FTF Exchange podcast series.
Complex corporate actions events with important voluntary aspects and ever-tighter deadlines are getting, well, more complex, says Dominique Tanner, head of content management for SIX Financial Information, who took part in another edition of the FTF Exchange podcast series.
A key reason is that public companies want to make themselves more attractive to investors, Tanner adds.
So, it’s probably time for securities-trading firms to seriously consider taking on the task of automating complex corporate actions to facilitate greater efficiencies and cost savings, Tanner says. It will also ease some of the related burdens of Ops staffs.
“I think the industry has made progress in the last decade, and many market participants have largely automated the simple, mandatory corporate actions like interest payments, redemptions, simple cash dividends, etc.,” Tanner tells FTF News.
“Simple corporate actions still account for some 80-plus percent of the overall corporate action volume. So, I think a lot of progress has been made. But now, the challenge is to go even further and automate the more complex corporate actions and finding ways to achieve even higher rates of automation, higher rates of STP,” Tanner says.
The podcast, featuring host Eugene Grygo, chief content officer for FTF News and Financial Technologies Forum (FTF), also covers:
- The major impacts of the global pandemic upon the corporate actions processing;
- Some of the typical structures of complex corporate actions;
- Examples of typical workflows for complex processing
- The effectiveness of standards efforts such as ISO 20022 in mitigating risk;
- The prospects of automating information and instruction flows that are part of the processing chain;
- Whether corporate actions processing is getting too complicated;
- An optimal ratio of manual to automated systems as firm move to full automation;
- And how can firms better manage the new of complex corporate actions.
Please enjoy this podcast! We invite you to continue the conversation in an upcoming webinar “Can Complex Corporate Actions be Automated?” on June 9, 2021.
To register or learn more about this upcoming webinar, click here.