The Association of Global Custodians has published a white paper titled “Statement on the Need for Universal, Standardized Messaging in Corporate Actions.”
The white paper summarizes the costs and handling problems encountered by financial institutions and investors when non-uniform or paper-based methods are used to communicate transactional details regarding corporate re-organizations or other corporate events involving substantial — and often time-critical — distributions and exchanges of securities and cash.
The paper also identifies action steps that issuers of securities, securities processors, intermediaries and other entities could take to unify messaging protocols and automate communications globally at every stage of the communications stream.
The white paper is available on the association’s website (www.theagc.com). The paper is also being made available through SWIFT (www.swift.com), the industry-owned co-operative that supplies secure, standardized messaging services and interface software to financial institutions and market infrastructure entities world-wide.
“The AGC is very pleased to present this paper to the industry and to begin to play a leadership role in improving industry-wide understanding of the problems and range of solutions and in facilitating progressive change,” says Keri Smith, chair of the AGC and head of worldwide network management for RBC Dexia Investor Services. “Association members are also very pleased to have the support of SWIFT in announcing the paper and organizing initial discussion forums. We expect to gauge progress periodically and provide updates when practical.”