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SWIFT and STP Consulting Solutions Jointly Provide Corporate Actions Business Assessment Services
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SWIFT and STP Consulting Solutions Jointly Provide Corporate Actions Business Assessment Services

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Presentation provides a high level overview of SWIFT and STP Consulting Solutions joint offering to provide business assessments for firms\' corporate actions process.

Presentation provides a high level overview of SWIFT and STP Consulting Solutions joint offering to provide business assessments for firms\' corporate actions process.

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SWIFT and STP Consulting Solutions Jointly Provide Corporate Actions Business Assessment Services SWIFT and STP Consulting Solutions Jointly Provide Corporate Actions Business Assessment Services Presentation Transcript

  • Corporate ActionsBusiness Assessment
  • Why Focus on Corporate Actions For many years managing corporate actions has been one that has evolved into disparate processes where problems are tackled in a piecemeal fashion With many external parties involved, requiring many manual operating procedures to be deployed, corporate actions continue as an area of high risk and cost to all parties However, over the past few years concrete progress has been made to address these concerns through the development of global standards, market practice and agreement as to how corporate actions should be processed in the future “Automation of corporate actions delivers premier customer service, attracts more business and manages risk in a very, very complex process.” David Kane, Head of Securities, JPMorgan Chase SWIFT Consulting Services 2
  • Why Now A convergence of initiatives that recognize the importance of collaboration has set the scene to improve corporate action processing with:  Interest from Regulators (for example in EU – Giovannini)  Cooperation between industry organizations (e.g. the Joint Corporate Action Working Group in Europe)  New initiatives raising awareness of the current disjointed process (e.g. the ‘Issuer to Investor: Corporate Actions’ initiative in the U.S.)  Consolidation around ISO Standards and its supporting Market Practice Now, with greater clarity on how to standardize corporate action processing and major organizations committing to ISO 15022 and/or 20022 (e.g. DTCC, Euroclear, Clearstream & JASDEC), financial services firms need to ensure they are ready to be part of and take advantage of processing improvements. SWIFT Consulting Services 3 View slide
  • 2015 DTCC ISO 20022 Mandatory MigrationThe Depository Trust Company (DTCC) is adopting ISO 20022Corporate Action Messages and a mandatory migration to ISO20022 Corporate Action messages is required for all participants.  By the end of 2015, all DTCC Corporate Action messages will be in ISO 20022 format  The ISO 20022 format is XML based and the standard for Corporate Actions messages will move from MT to MX  Regardless if over proprietary line/connection or via SWIFT Network, all Corporate Action messages will be in ISO 20022 XML format SWIFT Consulting Services 4 View slide
  • Why Leverage SWIFT and STPCS SWIFT has teamed up with STP Consulting Solutions, a team of industry experts with experience in implementing corporate action solutions across a wide range of financial institutions. SWIFT Consulting Services  For over ten years, SWIFT has assisted many large and mid-sized firms deal with operational and processing challenges related to corporate actions.  The team brings expertise in standardized messaging and industry best practices through close involvement with ISITC and Securities Market Practice Groups. STP Consulting Solutions  By partnering with clients, STP Consulting Solutions LLC provides investment firms with expertise in evaluating and implementing corporate actions solutions.  The focus is on providing corporate actions technology and consulting solutions to solve clients pain points while reducing risk and cost through technology innovation, evaluation, and implementation for corporate actions and the back office. We are offering a Corporate Actions Business Assessment to help financial institutions understand where their greatest challenges lie andConsulting Services SWIFT to help them formulate a strategy to address those challenges. 5
  • Assessment Benefits and Value We will come onsite and meet with your IT and Operational Specialists and prepare an “As-Is” and a “To-Be” business assessment. The assessment will highlight the strengths, weaknesses, opportunities and threats in your corporate actions processing, and will suggest a roadmap for tactical and long-term improvements. The assessment will also help you:  Gain greater clarity and understanding of your current state challenges and pain points  Help you to determine the scope and solution paths in moving your corporate actions initiatives forward  Guide where to invest to get the most value out of your investment  Provide the groundwork to communicate to senior management a scope, solution path, and timeline SWIFT Consulting Services 6
  • Assessment Phases Phase 1 Phase 2 Phase 3 Pre-workshop On-site Workshop Assessment delivery Strategy & business/IT driversLevel of granularity Questionnaire: Understand Current High level roadmap State Follow-up Planning SWIFT and STPCS Recommendations analysis of client current state Validate Key Findings Detailed expertise Review current state and pain points Assess strengths, Customize workshop Review corporate weaknesses, gaps, and actions features prioritize needs matrix 2-3 Days 15-20 Days SWIFT Consulting Services 7
  • What should you expect? A detailed description of your current, “As-Is”, state:  Business processes maps (when appropriate)  Capabilities matrix, prioritization, and assessment ratings  Assessment documentation  Systems architecture with communication interfaces (when appropriate) A high level road map for future processes and operations:  Recommendations and solution options taking into account internal/external forces and agreed strategic directions  High-level time-line in perspective with industry initiatives, including ISO 20022  Quick Wins providing immediate benefits “Benefits of the Business Assessment include documentation of “As-Is” environment and practices, a comprehensive set of “To-Be” recommendations, potential opportunities and an increased overall and specific knowledge of SWIFT.” Jim Ricci, Cash Management Product Manager, RBS Citizens Bank (Source: Presentation at SWIFT SOFA Conference, 2008) SWIFT Consulting Services 8
  • Current State Assessment ResponseAnnouncements Notifications Instructions Status Entitlements CaptureReceive theannouncmt A. Instruct Reconcile Receive Receive the Receive the Send from data Scrub and custodian / Send status and apply Notify clients instructions status from entitlement entitlementsproviders, load agent to Clients payment or from clients custodian / from to clientscustodian / stock agent custodian /agent B. Instruct agent Brokers LOW HIGH LOW LOW LOW MEDIUM MEDIUM LOW HIGH MEDIUMPartial Auto Manual Auto Partial Auto Partial Auto Partial Auto Auto Partial Auto Manual Auto RISK: HIGH, MEDIUM and LOW ratings. The risk is the Automated potential exposure (based on the value of the Corporate action) if there is a failure due to a lack Partially automated of automation and integration leading to errors or delays Manual Prioritize improvements in the manual processing “&” highest risk areas SWIFT Consulting Services 9
  • Current State AssessmentFrom the workshop and subsequent discussions a tailored assessment of the clients corporateaction abilities will be developed to highlight the areas of opportunity. Announce Outgoing Position Entitle- Response Payments/ Ref Data Workflow, ments & Notification and Trade ments & Allocations Dashboard Vendor Integration Instruction , and Feeds Reporting FAX HIGH LOW HIGH Phone LOW HIGH MEDIUM E-Mail MEDIUM LOW HIGH LOW ISO MEDIUM MEDIUM LOW MEDIUM HIGH LOW messages Proprietary Link or LOW HIGH MEDIUM MEDIUM MEDIUM Integration User HIGH MEDIUM HIGH MEDIUM MEDIUM MEDIUM LOW HIGH Interface Automated RISK: HIGH, MEDIUM and LOW ratings. The risk is the potential exposure (based on the value of the Partially automated Corporate action) if there is a failure due to a lack Manual of automation and integration leading to errors or delays SWIFT Consulting Services 10
  • Current State Assessment From the workshop and subsequent discussions a tailored assessment of the clients corporate action abilities will be developed to highlight the areas of opportunity.Areas of process Announcem Outgoing Position and Entitle- Response & Payments/Al Ref Data Workflow, ents & Notification Trade ments Instruction locations Dashboard,improvement cut Vendor Integration andacross lifecycle Feeds Reportingstages andtechnologyenablementthrough ISO FAX HIGH LOW HIGHmessaging and afeature rich Phone LOW HIGH MEDIUMapplication. E-Mail MEDIUM LOW HIGH LOW ISO MEDIUM MEDIUM LOW MEDIUM HIGH LOW messages Proprietary Link or LOW HIGH MEDIUM MEDIUM MEDIUM Integration User HIGH MEDIUM HIGH MEDIUM MEDIUM MEDIUM LOW HIGH Interface Automated RISK: HIGH, MEDIUM and LOW ratings. The risk is the potential exposure (based on the value of the Partially automated Corporate action) if there is a failure due to a lack Manual of automation and integration leading to errors or delays SWIFT Consulting Services 11
  • Recommendations Effort/Benefit Overview Targeted integration initiatives to improve process Announcements and High Vendor Data Short term, Workflow, Reference Benefit Dashboard, and process Data improvement Response & Reporting opportunityLong term, strategic Instructionopportunity for risk Operationalreduction and Proceduresautomation and Position and Controls Trade Outgoing Integration Notification Medium Benefit Payments & Lower investment Entitlements Allocations return Low Benefit High Effort Medium Effort Low Effort SWIFT Consulting Services 12
  • Summary In recent years concrete progress has been made addressing concerns related to the processing corporate actions with a strong push toward automation Major organizations are committing to ISO messaging standards with a focus on the 2015 DTCC ISO 20022 mandatory migration SWIFT and STP Consulting Solutions have teamed together to address these needs by combining their business and technical expertise in corporate actions by providing a corporate actions assessment You can expect a detailed “As-Is” overview, a high level roadmap of recommendations, possible quick-wins in improvements, and a focused review of your position as it relates to the future of corporate actions processing SWIFT Consulting Services 13