International depository Clearstream has teamed with Bondholder Communications (BondCom) to enable issuers to reduce paper-based processes and send investors corporate actions electronically.
The companies are launching an 'issuer services agency', which was formed by Bondcom and enables issuers of debt securities to use Web-based methods for communicating complex corporate actions events such as tender and exchange offers, consent solicitations and restructurings.
Clearstream says the service could reduce debt issuer costs by as much as EUR110,000 poer initiative through savings on paper processing and delivery.
Clearstream will provide operational and technical support for the service and will perform automated reconciliation of customer instructions and their positions.
Matthias Ganz, chief operating officer, Clearstream says: "We believe the service will substantially reduce the workload and risk faced by banks and brokerage houses."
The new services will complement Swift messaging formats, he says.