SunGard Launches Corporate Actions Repository

SunGard has launched a new utility model for corporate actions data, which allows SunGard to host a solution that may have previously been operated within a firm's back office.
By Jake Safane(2147484770)
SunGard has launched a new utility model for corporate actions data, which allows SunGard to host a solution that may have previously been operated within a firm’s back office.

The utility, SunGard’s Corporate Actions BPaaS (business process as a service) offers a global, central repository of cleansed corporate actions data from multiple sources for use within corporate actions processing applications, including, but not limited to, SunGard’s XSP.

“A core part of the XSP application and more of the differentiator from the industry has always been our data management component—the part of the application that actually makes sense of the data for the customer,” says Brendan Farrell, executive vice president and general manager, XSP, SunGard. “We’re going to be using that part of our technology that we already have and putting SunGard people in front of that process who will then bring the data into XSP in SunGard, to then create effectively a golden copy of that data and then drive that data downstream into, in many cases, XSP customers, other SunGard solutions that they might use…or third-party non-SunGard applications.”

The offering providers firms with access to the standardized data that comes from SunGard partnering with a number of major providers “to allow us to take in the best data sets in the industry and then use that as a primer of which we will then build the golden copy for our customers,” says Farrell. “We’re not going to start from scratch and go out and source the data from the exchanges across the world…there are people who do it very well and who’ve done it for a long time and we rely on them everyday, as does most of the industry, so we’ll be using those data vendors to prime this process.”

Yet offering accurate data in and of itself is not really the business case for the solution.

“Our customers see this as a complete zero value add,” explains Farrell. “There is no benefit to them doing this because everybody does this, everybody expects to get it right, you won’t sell more business by saying you’re processing the data correctly—you will get sued if you process the data incorrectly—and one of the things that our customers are really struggling with, and it’s become one of the themes at Sibos in regards to their conversations around business process outsourcing (BPO), is what I’m now calling knowledge attrition. Most of theses organizations have now pushed out as far as they can their operational centers to the lowest cost point.

“What happens though when they do that is they run the risk that if they lose one or two key people in those areas that understands some of the nuances around things like corporate actions, then they have a brand new risk on their hands, which is how do I get somebody up to speed and trained that actually understands these very complex events in a global marketplace that’s changing daily. Based on this knowledge attrition, we’re seeing not only is there a benefit from a cost savings perspective for customers who let someone like SunGard do what it’s doing anyhow, but there’s also the idea that we have the knowledge around building these complex applications and processing of corporate actions, so why don’t we put our people to work to do that process for the customers.”