Broadridge to connect to DTCC process for corporate action instructions in ISO 2022

Risk reduction and cost savings to accrue from increased automation.

By Richard Schwartz

Broadridge has become the first FinTech provider to connect to DTCC’s new automated process for submitting instructions for voluntary corporate actions in ISO 20022 format, an industry standard message type designed to simplify global business communication. 

The newly enhanced service automates the manual process of submitting corporate action instructions, reducing risk associated with human error and providing significant cost savings for clients.  

The program will provide common members of both DTCC and Broadridge’s Global Asset Servicing Solution the ability to manage and execute corporate action instructions around time-sensitive events in a more streamlined and efficient manner, increasing straight-through-processing rates and minimising the risks associated with manual instructions. Broadridge currently services more than 60 DTCC corporate actions clients.  

“This new offering for Broadridge’s Global Asset Servicing Solutions clients is another industry first, enabling participants to increase straight-through-processing rates for voluntary corporate action instructions from financial advisors to agents,” said Michael Wood, head of asset servicing, Broadridge. “Broadridge looks forward to collaborating further with DTCC and to expanding our product offerings for clients.” 

After completion of testing, Broadridge expects to go live with DTCC’s automated program in early 2022. 

In a separate collaboration, Broadridge is working with DTCC to evaluate ways to achieve data standardisation for equity corporate actions events, so that a “golden copy” record sourced from issuers can be disseminated to all market participants.