2. Corporate Actions Reengineering
Asset Servicing
1/2/2019
Corporate Actions Reengineering
Lori Ann Trezza
A service offering of [name of subsidiary], a subsidiary of The Depository Trust & Clearing Corporation
[Classification]

3. Corporate Actions Reengineering
Asset Servicing
1/2/2019
Corporate Actions Reengineering
Lori Ann Trezza
A service offering of [name of subsidiary], a subsidiary of The Depository Trust & Clearing Corporation
[Classification]

4. Why is DTCC Reengineering?
Help participants manage risk, reduce cost and achieve greater levels of STP globally
Better align DTCC data with industry standards
Ensure DTCC systems can support future growth and direction (e.g., global events, multi-currency, etc…)
[Classification]

5. Why is DTCC Reengineering?
Improve maintainability of application – existing application is 60 participant functions implemented at various times since 1978 with components developed in outdated languages (e.g., Assembler)
[Classification]

6. Why is this important to you?
All corporate action related CCF files that you or your service provider may take from DTCC will be replaced with either ISO or XML messages
User interface for new system will only be browser based GUI technology and will replace all of the existing corporate action related PTS and PBS functions
[Classification]

7. Why is this important to you?
“Screen scraping” or macros from PTS screens will no longer be supported
You will be able to automate your election processing (including tax elections) and have “standing instructions”, which will improve your STP and decrease your costs
You will be able to receive corporate actions on global securities (optional service)
[Classification]

8. What are the Key Announcement Changes?
New Event Structure
Common Structure – a new event structure that will be based on industry standards
Unique Event Id – each event will have a unique id that will be used for the entire event lifecycle (e.g., submitting elections)
Single Announcement – DTCC currently provides separate announcements for options on elective events and tax rates on a dividend, but participants will now be able to see a single complete view of each event
[Classification]

9. What are the Key Announcement Changes?
New Event Naming
Event Types – meaningful event type names that conform to industry standards (e.g., Cash Dividend, Tender Offer) will now be used - numeric Function Codes are being eliminated
Sub-Event Types – will provide greater detail to facilitate STP (e.g., Tender Offer will have sub-event type of “Dutch Auction”, “Mini”, etc…)
Additional Event Level Attributes
event group, event mandatory/voluntary indicator, DTC mandatory/voluntary
[Classification]

10. What are the Key Announcement Changes?
Options
Indicators to identify issuer vs DTC options
Payouts
Expanded rates
Stock rates declared as ratios or percentages
Cash rates will be declared per base quantity
Expanded Data
[Classification]

11. What are the Key Announcement Changes?
Comments
Introduction of Terms, Restrictions Text, Option Text, Condition Text, Payout Restriction Text, and External Comments
Event and Field Level Status
Issuer Cancellations
Related Events
[Classification]

12. What are the Key Processing Changes?
Option Specific Cutoff Times
Automated Instructions via ISO15022 and XML Messages
Instruction Approval Process
Standing Instructions
Stock Loan Income Tracking Tax Elections
[Classification]

13. What are the Key Processing Changes?
Allocations at Gross Rate
Adjustment for Tax and Fees
Intra-day Income Tracking Adjustments
Post Payable Rate Changes : Reverse and Reallocate
[Classification]

14. Other Key Changes Intra-day Messaging
ISO and XML Messages – the current CCF files (e.g., REORG, REDEM, CMORT,etc…) will be replaced by new XML and ISO message formats
Additional Delivery Option – participants will be able to retrieve data via MQ messaging in addition to current NDM and FTP options
Frequency – participants will be able to receive corporate action messages and submit automated elections throughout the day, instead of just end-of-day
[Classification]

15. Other Key Changes Customer Dashboard Global Event Support
Global Coverage – customers can receive corporate actions on global securities, scrubbed by operations located around the world (NY, London, and Shanghai)
[Classification]

16. Current Status
Announcement Create and Maintain functionality in development
External Customer Interviews are in progress
Finalizing Requirements for Announcement Inquiries and Dashboard
[Classification]

17. What information is currently available?
Business/Operations Documentation
Data Reference Guide for Event Types
Corporate Action Event Scenarios
Technical Support Documentation
Technical Specifications Guide
Data Reference Guide for Fields
Transition Plan
File Field Mapping from Legacy to ISO/XML
ISO Message Specifications
XML Message Specifications
** All documentation is available on the DTCC website
[Classification]

18. What Customers Should Be Doing?
Review Business Documentation
Engage IT personnel to review technical documents
Identify impact of elimination of “screen scraping”
Key decisions
ISO vs. XML
Intra Day vs. End of Day
Will you be an early adopter
[Classification]

19. What’s Coming
Based on customer feedback and additional analysis, DTCC will be releasing updated versions of documentation in 2008
Business Documentation – updated business documentation (e.g., Corporate Action Event Scenarios) was released in July
Technical Documentation – updated technical documentation (e.g., ISO and XML Message Layout) will be released at the end of Q3 (aligned with the annual SWIFT release)
[Classification]

20. What’s Coming Updated Transition Plan and Dates – Q4 2009
First version of new screen designs will be reviewed
Third party firm was engaged to perform user research and creation of screen designs that will ensure a great user experience
Initial interviews with external users have already been conducted and many more are scheduled
First version of prototype will be reviewed in Q1 2009
[Classification]

21. Additional questions can be sent to:
[Classification]