DTCC: Global Corporate Action (GCA) Validation Service

Overview

As part of its ongoing effort to innovate and expand its role in corporate actions, DTCC developed a plan to automate and standardize the processing of corporate action announcements to lower risk and drive down costs.

Business Challenge

Corporate actions—such as tender offers, conversions, stock splits and mergers—are one of the last significant areas of risk associated with largely manual and non-standardized processing in the securities industry. According to a 2004 study, the risk from just one mishandled complex corporate action could run into tens of millions of euros for individual securities firms—and multi-billion euros for the global securities industry.

How We Helped

DTCC teamed with Accenture to build a new service—the Global Corporate Action (GCA) Validation Service, launched in 2003. Accenture provided program management support and helped implement the service's underlying technology solution. Accenture continues to work with DTCC supporting the service and enhancing its operation.

High Performance Delivered

Today, thanks to DTCC's vision and 30 years of corporate action processing experience, as well as Accenture's broad implementation skills, the GCA Validation Service not only provides better data quality and economies of scale to customers but also eliminates redundant operations and technology.

The service is provided by Global Asset Solutions LLC, a wholly owned subsidiary of DTCC. Third-party observers have also taken notice of the high-performance delivery value of the GCA Validation Service. Waters named DTCC the industry's "Best Corporate Actions Provider" for 2004.

Depository Trust and Clearing Corp.: Global Corporate Action Validation Service