J.P. Morgan is launching a new ISO 20022-compliant income announcement messaging system on the Depositary Trust and Clearing Corporations (DTCC) SMART network, making the bank the first to do so among a pilot group of three other companies.
In June, BBH implemented the real-time system for corporate restructuring actions. J.P. Morgan is expecting to implement all corporate action types by August.
This is a significant event for JPMorgan Chase and for our clients, says Mark Trivedi, product head for Global Custody Americas at J.P. Morgan. ISO 20022 brings major new efficiencies to corporate actions processing, helping to reduce risk, foster transparency and streamline the delivery of corporate actions information.
The system, which has been developed by SWIFT and the DTCC, began testing through a pilot program involving BNY Mellon, Brown Brothers Harriman, J.P. Morgan and National Financial Services in April last year, according to the DTCCs Web site.
More clients are expected to announce ISO 20022 implementations this year, the DTCC says, and the company also plans a third quarter launch of a pilot for distribution events covering the entire corporate actions lifecycle including entitlements, settlements and election processing for events eligible for the DTCCs Elective Dividend Service.
This represents a milestone for both DTCC and J.P. Morgan Chase, says Daniel Thieke, managing director of DTCC Asset Services. J.P. Morgan Chase has been involved with DTCCs ISO 20022 program from the start. As a leading global custodian, J.P. Morgan Chase understands the benefits that DTCCs reengineering initiative brings to corporate actions announcements processing including moving the industry closer to straight-through processing and further reducing risk.
(OS)