DTCC Reengineering Underwriting And Corporate Actions Systems With TCS

The Depository Trust & Clearing Corporation (DTCC) announced today a new strategic initiative with Tata Consultancy Services Limited (TCS) to collaborate in the reengineering of DTCC's core systems for securities underwriting and corporate actions processing for the U.S. financial services

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The Depository Trust & Clearing Corporation (DTCC) announced today a new strategic initiative with Tata Consultancy Services Limited (TCS) to collaborate in the reengineering of DTCC’s core systems for securities underwriting and corporate actions processing for the U.S. financial services industry.

The initiative will create a single new platform, replacing more than 60 separate underwriting and corporate actions legacy systems that have evolved over the past three decades. The integrated platform will streamline processing, generate further efficiencies, reduce costs and provide greater flexibility – dramatically transforming how these systems manage and process information.

“This is a major overhaul of our core underwriting and corporate action processing systems,” said William Aimetti, DTCC’s chief information officer. “The new platform will be capable of handling increasingly sophisticated types of securities – both U.S. and global – supporting an array of new asset servicing requirements and complex corporate actions, processing increasing volumes and allowing us to support international messaging standards.”

“We welcome this partnering arrangement with TCS,” continued Aimetti. “DTCC will license TCS’ NCS Corporate Actions solution and will collaborate with TCS to tailor and create additional capabilities for the financial sector.”

“Our goal is to build a robust, integrated platform that embeds straight-through processing (STP) procedures for U.S. and global securities from origination through maturity, known as ‘cradle to grave,'” said Janet Wynn, DTCC managing director and head of the company’s Asset Services business. “The new platform will allow comprehensive corporate action information to be captured during the underwriting process, so that the information can later be used to support automated corporate action announcements, helping to eliminate the need for manual input and processing.”

DTCC indicated that the new platform would be a multi-year effort, with features introduced in major phases as they are ready for industry testing. Preliminary testing of the underwriting component is planned in late 2006, with launch in 2007. The corporate action component is planned for launch in 2009, with testing in the prior year. The new platform will offer multi-currency processing, ISO 15022 messaging formats and international identification numbers, such as ISIN. The new system will also give customers the ability to check the status of a security or a corporate action involving a security at any time via the Internet.

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