DTCC has begun testing ISO 20022 inbound instruction messages, with the aim of providing greater accuracy and efficiency to corporate actions processing for its clients.
This first automated instruction message was received from Interactive Brokers through DTCC's Depository Trust Company (DTC) subsidiary.
DTC is the first financial market infrastructure to adopt the ISO 20022 format for corporate actions processing.
"DTCC is working collaboratively with clients to test electronic instructions for distribution event types," said Rob Epstein, DTCC vice president of asset services. "In response to client feedback, DTCC developed the automated messaging process to help mitigate risks and reduce costs in corporate actions processing."
In 2014, DTCC will also be introducing instruction statement reporting via ISO 20022. The instruction statement reporting message, known as the 'CAST' message, will allow firms to automate the tracking process for outstanding election balances.
Standardised messaging with a new browser-based user interface is part of DTCC's overall corporate actions transformation initiative. The goal of the initiative is to transform corporate actions processing for the financial services industry and will be implemented in phases over the next three years.
