The Depository Trust & Clearing Corporation (DTCC) and SWIFT, the financial messaging provider for more than 10,000 financial institutions and corporations in 210 countries, today announced BNY Mellon is the latest financial institution to go live on DTCC's new corporate actions messaging solution over the SWIFT network.
The solution, which the DTCC launched late last year for corporate actions announcements, is part of a broader initiative by DTCC to reengineer its corporate actions platform and adopt the global ISO 20022 standard as part of the core service offering to its participants.
BNY Mellon was an active member of the solution's pilot program, providing essential feedback that helped create global standards throughout both the testing and validation process. Based on the successful pilot, BNY Mellon is implementing mandatory corporate event announcements and will transition the remaining event types during future phases. The move from using proprietary files to implementing ISO 20022 real-time standard messaging eradicates the need for manual tasks, reducing risk and increasing accuracy of corporate action information.
"By going live with corporate actions and the ISO 20022 messaging standard, we are enhancing our client experience, reducing risk, and enabling greater straight through processing," said Calvin Holmquist, executive vice president and head of Global Securities Operations at BNY Mellon.
"We continually focus on providing global custody clients with a uniform experience across all markets," said Stephanie Keppenne, BNY Mellon managing director and head of Core Custody Product Management. "The new messages will allow for more transparency and standardization, reducing time to market and giving clients more time to make informed investment decisions."
"BNY Mellon's adoption of our corporate actions messaging solution represents a milestone for corporate actions in the U.S.," said Susan Cosgrove, DTCC Managing Director and General Manager, Settlement and Asset Services. "With the industry moving toward one global messaging standard, multiple financial institutions will be able to take advantage of their current infrastructure to process corporate actions using the DTCC or SWIFT network. This will increase automation and transparency, reduce risk and bod boost efficiency and return on investment."
"Partnering with DTCC on their corporate actions messaging solution is another example of how we are working with the industry to answer shared industry challenges through a common set of standards," Chris Church, Chief Executive Americas and Global Head of Securities, SWIFT said. "By eliminating manual tasks in corporate actions, BNY Mellon is making strides toward reducing their operational risk and improving automation in corporate action announcement processing."
The announcement is the latest achievement by the Issuer to Investor: Corporate Actions initiative, which was launched in May 2009 to improve the processing of corporate actions data in the U.S. BNY Mellon was one of the first financial institutions to join the ISO 20022 corporate actions messaging pilot program in 2010 and continues to work with DTCC to pilot XBRL for American Depositary Receipt (ADR) corporate actions announcements. The XBRL taxonomy, aligned with ISO 20022, reduces the cost and risk of errors inherent with manual processing by enabling standardized, computer-readable announcements. BNY Mellon is one of three depositary banks among other parties involved in the XBRL pilot with DTCC.