Asset Servicing Innovation

How is the world of asset servicing dealing with this time of unprecedented market and regulatory change? Are we transforming or just surviving?

Many problems, one solution

But where to start? There is no single corporate action problem – as challenges vary by investment activity, event type, customer profile and asset class.

Yet some key points stand out. In Asia-Pacific, interacting with market infrastructures is simply too manual – creating risks and latency issues downstream. In North America, manual processes still outweigh system issues as a source of problems for practitioners – as paper-based market practices continue to make manual intervention unavoidable. Only in Europe are practitioners preoccupied more by system limitations than by manual processes.

In an age of such incredible innovation “it feels very 1980s” for us to still be struggling with such core issues. The path to progress is not entirely straight forward, but it begins with collaboration and standardisation – as corporate actions are an ecosystem challenge above all.

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The corporate action problem is big … and growing

Over 62% of practitioners around the world are paying out more than USD2million in corporate action errors. And the only thing that seems open to question is whether that number should be higher – especially if you include the opportunity cost of (non-)elections.

But whilst provisioning and contingency funds may have made this tenable in the past, the events of 2020 have undermined our fragile corporate action infrastructures even further. Record numbers of events have begun to behave differently (becoming more complex and subjected to rescheduling, etc.), creating a major drain on scarce, manual expertise. At a time when regulation is driving us towards improved timeliness and transparency, corporate actions have risen to #1 in the investment agenda in 2021.

Today the costs of corporate action errors risk spiralling – driven not only by a shift in corporate action behaviours but also by a strong focus on highly complex business activities (such as prime brokerage and structured products). Change is needed to support this landmark change. Now.

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The industry perspective

What does our research mean for the industry? Listen to expert views and insights from Mike Thrower (Broadridge) and Colin Parry (ISSA) as they explain what our research's Key Findings mean to them.

DLT in the Real World: Key Findings explained

Glen Fernandes

Euroclear

Urs Sauer

SIX

Colin Parry

ISSA

As we discuss the Key Findings of this industry-wide research

The APAC perspective

With the highest levels of corporate action errors of any region, what does corporate action automation mean in Asia-Pacific?

Listen to expert views and insights from Maria Leung (HKEX), Mike Thrower (Broadridge) and Gary O'Brien (BNP Paribas) as they explain why APAC is a unique challenge and opportunity

Full Key Findings

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Download the key statistical insights from our industry-wide research here

Download the key statistical insights from our industry-wide research here

Download the key statistical insights from our industry-wide research here

Download the key statistical insights from our industry-wide research here

Download the key statistical insights from our industry-wide research here

Download the key statistical insights from our industry-wide research here

Download the key statistical insights from our industry-wide research here

Download the key statistical insights from our industry-wide research here

Download the key statistical insights from our industry-wide research here