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Mitigatingriskinthecorporateactionslifecycle 150106110717 Conversion Gate01 PDF
Mitigatingriskinthecorporateactionslifecycle 150106110717 Conversion Gate01 PDF
Kerry White
Managing Director
Brant Rock Advisory Services
Agenda
• The Corporate Actions Lifecycle and Issues We Face
• Factors Impeding Corporate Actions Automation Projects*
• Potential Consequences Of Not Addressing Issues
• Regulatory Impacts
• Conclusions
*Source: “Corporate Actions 2012: A Global Survey of the Corporate Actions Marketplace,“ Swift and CityIQ, 2012
The Corporate Actions Lifecycle
Event Issues At Hand
Posting
Management
• Greater Volume
• Lack Of Automation
*Source: “Corporate Actions 2012: A Global Survey of the Corporate Actions Marketplace,“ Swift and CityIQ, 2012
Potential Consequences Of Not Addressing Issues
• Missed Investment Opportunities
• Losses Due To Incorrect Instructions And Valuations
• Increased Costs And Reduced Profits
• Sub-optimal Investment Decisions Based On Incorrect Data
• Reduced Investment Performance
Regulatory Impacts
• Regulatory change is a global phenomenon
• Firms will be significantly impacted by a rapidly changing environment with multiple
changes to operational processes
• There is no shortage of initiatives:
• LEI
• MIFID2
• EMIR
• AIFMD
• CSD
• T2S
Conclusion
• Adoption Of Common Messaging Standards And Automation Will Streamline Corporate
Actions Processing
• Outcome Will Be Improved Quality And Timeliness Of Data
• There Are Still Challenges To Overcome
• Success Requires Greater Collaboration Among Industry Players
• Genuine Engagement With The Securities Issuer Community Would Also Help
• Increased Profits And Improved Investment Performance Should Accrue
Brant Rock
Advisory Services