Solutions that can help the market get there
The survey indicates that there is no silver bullet for corporate actions automation and no single off-the-shelf solution that can satisfy everyone’s immediate needs.
Market participants are also sceptical that any platform will be able to deliver the required level of resilience, in terms of straight-through processing (STP) in a timeframe that justifies the transition.
However, ASX’s Real Time Corporate Actions service, built in consultation with the industry, is a golden copy data source of corporate action event information. Issuers complete a standardised form, and our STP service quickly distributes data to the market in a format that is structured, compliant and machine readable.
An extension of our End of Day (EOD) batch file service, Real Time Corporate Actions offers faster, more comprehensive data, delivered in an easy-to-process, industry-standard, ISO 20022–compliant format.
The service encompasses all corporate action events covered by ASX and additional data items not available via EOD. Importantly, this data contains key identifiers applied by ASX, such as the event types and the official corporate action event id, also used in CHESS for post trade services. CHESS replacement will be consuming the same ISO 20022 event notifications to ensure consistent and standardised data and to support enhanced event services for market participants.
The provider and subscribers will invariably need to engage in a period of collaboration, of 18–24 months, to fully harness the service’s power. However, through open, transparent engagement, they can address key issues together and shape a solution that delivers significant improvements in STP speed and accuracy when compared with current processes. An early adopter of the solution has quoted an 80% increase in STP rates from using ASX's Real Time Corporate Actions service.
Corporate Actions in Australia: The Case for Transformation, produced by The Value Exchange and sponsored by ASX, gathers insights from over 60 financial market participants to provide a comprehensive view of the Australian Corporate Actions landscape. If you haven’t yet read the report, take the opportunity to review the key highlights and explore the data behind the insights. Access the report here.
You can learn more about ASX’s Real Time Corporate Actions or get in touch with us to find out more.