The Depository Trust & Clearing Corporation (DTCC) announced today the introduction of a new low-cost Web browser service that offers real-time, unlimited access to all global, validated corporate action information in its database.
Developed by DTCC's Global Corporate Actions (GCA) business unit, the GCA Browser provides a direct connection to the GCA Validation Service data base, a centralized source of the highest quality "scrubbed" corporate action announcement information on global securities.
The GCA service team validates data on over two million securities in over 160 countries through an intricate process of mapping, normalizing and consolidating announcement information, generally referred to in the industry as "scrubbing." The team of 68 experts located in service centers in New York, London and Shanghai then enrich the data through follow-up research, relying on over 200 sources to deliver the "golden" copy of the data.
"This powerful online tool provides a low-cost entry point to the kind of data once only available to those who subscribed to multiple and expensive data sources," said Brett Lancaster, DTCC vice president, GCA. "The GCA Browser gives corporate action professionals, researchers, and front and back-office teams easy access to our precisely aggregated and deeply validated corporate actions data."
The browser is available as a separate and stand-alone service offering to new clients or existing clients of the GCA Validation Service. Clients can select as a subscription option whether they wish to view corporate actions against global securities or against US/Canadian securities.
A corporate action takes place when changes are made to the capital structure or financial position of a corporate entity, changes that may affect securities issued by the company. The information can include rights offerings, elective dividends, tender offers, bankruptcies, mergers, redemptions and many other corporate events. Each action may involve hundreds of financial institutions, leading to thousands of communications and/or payments.
Financial institutions face the substantial risk and cost of managing the massive amount of raw information associated with corporate actions. Since investors rely on the data to settle accounts and to make investment decisions, one event can have enormous ramifications to an investor who makes a wrong decision based on flawed or untimely data. Industry sources have estimated that up to 10% of the annual cost of processing corporate actions comes from funds reserved for losses attributed to bad data.
Since 2003, the GCA Validation Service has been reducing the risks associated with global corporate actions by streamlining, automating and centralizing the global corporate action announcement process, bringing efficiencies to a labor intensive, complex and costly back office operation.
GCA Browser Features
The GCA Browser offers a number of capabilities that streamline access to corporate action information.
- Real time unlimited access to all GCA data in full detail through a secure Web-based inquiry tool
- No need to provide a Security of Interest (SOI) portfolio file
- Expandable search capability to include "all exchanges" even for a market- specific security
- Create and save common searches for re-use
- Create personalized "watch lists" of securities
- View attached documents or Web links (e.g. prospectus or press release) as well as a comprehensive audit trail of when and how the corporate action event was created/updated throughout its life cycle
- Help Desk support request available directly from the application