Future of Corporate Actions Presentation to ACSDA July 2024
This presentation covers the future landscape of corporate actions, including settlement trends, event types, notification trends, and challenges in the corporate actions space for 2023-2024. It delves into the complexities and intricacies of corporate actions such as dividends, interest payments, redemption, and more. The content highlights the evolving nature of corporate actions and the initiatives shaping the industry like APIs, DLT, AI/ML, and digital assets.
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Presentation Transcript
Future of Corporate Actions Presentation to ACSDA July 2024 Confidentiality: Restricted
Page 2 Settlement vs CA Traffic in NAM Settlement Vs CA Traffic in Central & LATAM March 25 Future of Corporate Actions Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 S&R Traffic Sent CA Traffic Sent S&R Traffic North America CA Traffic North America S&R: MT54X and CA: MT56X messages with settlement region as Central & LATAM S&R1/1/2024: MT54X and CA: MT56X messages with settlement region as Central & LATAM Types of CA Events for ISINs issued in NAM Types of CA Events for ISINs issued in Central & LATAM Annual General Meeting, 29% Interest Payment, 6% Partial Redemption Without Reduction of Nominal Value, 10% Cash Dividend, 36% Extraordinary or Special General Meeting, 17% 68 Different Event Types 69 Different Event Types Dividend Option, 3% Interest Payment, 38% Source: Watch Powered by SWIFT BI Cash Dividend, 32% Data range: 2022 - YTD Data range: 2022 - YTD
Page 3 CA Traffic Trends for ISINs issued in Central & LATAM CA Traffic Trends for ISINs issued in NAM 100% 100% 90% 90% 18.84% 80% 20.78% 21.60% 80% 19.90% 22.58% 70% 20.80% 70% CA - Status CA - Status 60% 60% 50% 50% CA - Notification free format CA - Notification free format 40% 40% CA - Notification CA - Notification 30% 30% March 25 Future of Corporate Actions CA - instruction CA - instruction 20% 20% CA - Confirmation CA - Confirmation 10% 10% 0% 0% CA Traffic: MT56X messages with settlement region as Central & LATAM CA Traffic: MT56X messages with settlement region as NAM CA Notification Trends for ISINs issued in Central & LATAM CA Notification Trends for ISINs issued in NAM 100% 90% 100% 90% 80% 80% 70% 70% Voluntary CA event 60% Voluntary CA event 60% 81.56% 83.88% 85.19% 50% 50% Mandatory w/ options CA event 40% Mandatory w/ options CA event 40% 30% 30% Mandatory CA event (excluding Dividends) 20% Source: Watch Powered by SWIFT BI 20% Mandatory CA event (excluding Dividends) 10% 10% 0% 0% CA Notification: MT564 messages with ISIN region as Central & LATAM CA Notification: MT564 messages with ISIN region as NAM
Corporate Actions Challenges Landscape 2023 -2024 APIs DLT Tech AMI- SeCo SRD3 AI/ML ISO 20022 ECMS Harmonisation initiatives SCoRE SIFMA CA WG T+1 Taxes Digital assets Things to come New entrants 4 Future of Corporate Actions
Join at Slido.com #SwiftCA Frictionless corporate actions : plans for 2024 March 25 1) Monitoring trade settlement and concurrent Corporate Actions to prioritize risk management and exceptions resolutions We want to reduce manual processing in corporate actions by providing traceability, enhancing data sourcing and its quality and helping to create a shared version of the events. 2) Explore AI deployment in Corporate Actions to streamline processes, improve decision- making, and predictive capabilities 3) ISO 20022 adoption to ensuring a smooth transition where required 4) Market practice validation to help drive global market practice adherence 5) Support issuer data sourcing capabilities to ensure clarity on source of information 6) Support APIs for Corporate Actions development aligned with ISO standard to facilitate seamless integration and uniform data exchange
Swift is a global member-owned cooperative and the world s leading provider of secure financial messaging services. We provide our community with a platform for messaging, standards for communicating and we offer products and services to facilitate access and integration; identification, analysis and regulatory compliance. Our messaging platform, products and services connect more than 11,000 banking and securities organisations, market infrastructures and corporate customers in more than 200 countries and territories. Whilst Swift does not hold funds or manage accounts on behalf of customers, we enable our global community of users to communicate securely, exchanging standardised financial messages in a reliable way, thereby facilitating global and local financial flows, and supporting trade and commerce all around the world. www.swift.com Optional content Contact details email@swift.com +12 34 56 78 90 Our Local office address Street Town Country Instead of the address, Swift social media links or useful links regarding your content can be added.
