Standards and data quality improvement vital for corporate actions STP, CityIQ/SWIFT survey finds
Majority of respondents call for validation of adherence to market practice.
Published on 22 October 2008
Broader implementation of standards and improvements in data quality are essential if the industry is to achieve STP in corporate actions processing, finds a new survey carried out by consultancy CityIQ in association with SWIFT.
SWIFT, Securities Market Practice Group (SMPG) and ISO are identified as being the most likely bodies to positively impact corporate actions data quality.
The survey revisits a study
CityIQ and SWIFT carried out in 2003, providing detailed insight into the progress of corporate actions STP during the past five years. The findings show that the reasons for automating corporate actions processing in 2008 remain similar to those cited in 2003 – volume growth, avoiding losses and containing operating costs. However, the relative importance of volume growth and avoiding losses has increased significantly since the last survey, reflecting higher levels of activity and complexity in the corporate actions environment.
The importance of adhering to market practice to ensure high levels of corporate actions STP comes out very strongly from the survey results. Asked to rate the validity of the statement, “Market practice guidelines are critical for achieving STP”, the vast majority of respondents said they strongly agreed or agreed. Similarly, most respondents said they strongly agreed or agreed with the statement, “Conforming to market practice could help if the industry would take market practice seriously”.
The majority of respondents also call for validation of adherence to market practice in corporate actions messages to better support STP. SWIFT’s
Simulation Testing and Qualification Service (STaQS) for Corporate Actions enables customers to self-test their messages for adherence to market practice.
On Wednesday 29 October, CityIQ will present the survey findings at a seminar at the Sun Microsystems Customer Briefing Centre in London, entitled “Improving Data Quality for Corporate Actions STP”. There will also be an interactive panel discussion, with representatives from organisations including CityIQ, CheckFree, HSBC, and SWIFT exploring possible solutions to the problems of data quality in the corporate actions space.
To reserve a place at this free event, which runs from 15.30-18.00, email
events@cityiq.com.
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