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Features in Corporate Actions Processing Systems
for Operations
Specialized software handling dividends, stock splits, mergers, rights issues, and other corporate events affecting securities holdings.
We ask vendors to mark their product against our feature list. It is not available for all products and in some cases we have derived data from publicly available sources. The list of features follows. Vendors can add a further 10 key features of their own.
Automation & Workflow
Features supporting straight through processing (STP), task management, and exception handling.
- Assignment Rules
- Work items can be routed to specific roles, users, or teams automatically.
- Audit Logging of Manual Overrides
- Detailed, time-stamped records kept for all manual interventions.
- Bulk Processing Support
- Enables batch processing of multiple corporate actions events.
- Configurable Alerting
- Ability to set thresholds, notifications, or escalation rules for key workflow stages.
- End-to-End Automation
- Corporate actions processed without manual intervention under normal conditions.
- Exception Management
- Automated identification and assignment of exceptions or breaks requiring manual review.
- Service-Level Tracking
- Monitor processing against defined SLAs (e.g., response or completion times).
- Straight Through Processing Rate
- Percentage of actions processed without manual touch.
- User Dashboards
- Role-based dashboards tracking pending, completed, or exception tasks.
- Workflow Customization
- Ability to customize workflow stages and task sequencing.
Client Notification and Elections
Features supporting client communications and management of voluntary corporate action elections.
- Client Notification Engine
- Automates notification to clients regarding upcoming events (e.g., proxy, rights issues, tender offers).
- Configurable Templates
- Customizable notifications, election instructions, and event summaries.
- Digital Client Elections
- Online interface for clients to submit voluntary action instructions.
- Document Storage
- Stores and archives submitted instructions, supporting documents, or consents.
- Election Deadline Management
- Automatically calculates and enforces client response dates and reminders.
- Instruction Aggregation
- Aggregates client responses and generates summary instructions for market submission.
- Instruction Validation
- Real-time checking for valid elections based on position and eligibility.
- Late Instruction Handling
- Defines protocols and warnings for late or amended client responses.
- Multichannel Notification
- Supports email, web portal, SMS, push, and secure messaging.
- Response Tracking Dashboard
- Live monitoring of response rate, missing instructions, and pending follow-up.
Controls & Compliance
Functionalities ensuring operational and regulatory compliance, risk reduction, and process controls.
- Access Control & Segregation of Duties
- Granular role-based access management and audit for all user actions.
- Compliance Rules Engine
- Allows rules to define exceptions, embargoed securities, or other regulatory constraints.
- Configurable Maker-Checker
- Custom rules for checker review and approval for designated workflows.
- Data Retention Policies
- Configurable rules for archival and deletion per regulatory requirements.
- Error Handling & Exception Reporting
- Customizable handling and escalation for compliance or business rule violations.
- Four-Eyes Authorization
- Dual authorization required for sensitive operations (e.g., major booking amendments).
- Incident Logging
- Tracks and escalates processing exceptions, breaks, or compliance issues.
- Pre-processing Validation
- Checks completeness and compliance of events before processing.
- Regulatory Reporting
- Automation of required regulatory submissions (e.g., to FCA, SEC).
- SOX/ITGC Audit Features
- System features facilitating Sarbanes-Oxley audits: logging, review, attestation.
Corporate Actions Coverage
The range of corporate actions supported and depth of data captured by the system.
- Custom Event Handling
- Ability to create and process custom or non-standard corporate actions.
- DRIP (Dividend Reinvestment Plan) Support
- Processes client choices for automatic dividend reinvestment.
- Fractional Share Management
- Handles creation, allocation, and payout of fractional shares resulting from corporate actions.
- Historical Event Processing
- Ability to process and adjust past corporate actions or apply restatements retroactively.
- Linked Event Processing
- Ability to identify, group, and process linked or sequential events (e.g., dividend and split on same security).
- Multi-ISIN/Identifier Recognition
- Supports processing securities with multiple identifiers (ISIN, CUSIP, SEDOL, etc.).
- Multi-currency Support
- Handles events and transactions in multiple currencies with FX conversion.
- Multi-market Support
- Ability to process corporate actions across multiple geographical markets and exchanges.
- Supported Event Types
- Number of distinct corporate action event types (e.g., dividends, stock splits, mergers) the system can process.
- Tax Withholding Calculation
- Supports automated calculation of withholding taxes for various event types.
Data Integration
Capabilities supporting ingestion and distribution of corporate action data across external sources and internal systems.
- API Availability
- RESTful or SOAP APIs for data integration and system interoperability.
- Audit Trail for Data Changes
- Comprehensive logging of all inbound/outbound data changes and corrections.
- Custom Mapping Tools
- User-configurable mapping and transformation between data sources/targets.
- Data Validation Rules
- Automated validation and enrichment of incoming data for accuracy and completeness.
- Duplicate Event Detection
- Identifies and flags duplicate or conflicting corporate action notifications.
- Inbound Format Support
- Range of supported data formats (e.g., ISO 15022, ISO 20022, Excel, XML, CSV, SWIFT).
- Inbound Integration (Data Vendors)
- Connectors for ingesting data from major vendors (e.g., DTCC, Bloomberg, SIX, Euroclear).
- Master Data Integration
- Reconciliation and synchronization with internal security, client, and position master data.
- Outbound Integration
- Interfaces for outbound messaging to downstream systems (e.g., settlement, finance, reporting).
- Real-Time Data Feed Support
- Near real-time corporate actions event updates and notifications.
Entitlements & Position Management
Calculation and allocation of event proceeds, shares, and entitlements to client accounts.
- Audit Reports
- Creates detailed logs and audit reports of all entitlement calculations.
- Bulk Adjustment Capabilities
- Easily process corrections or adjustments affecting multiple clients/accounts.
- Cash and Stock Proceeds Processing
- Automated calculation of both cash and securities outcomes for all clients.
- Eligibility Verification
- Checks if clients/accounts are eligible for specific events or options.
- Fractional Share Rounding Rules
- Configurable parameters for managing fractions (e.g., cash-in-lieu, carryforward).
- Multi-Level Pro-Rata Allocation
- Distributes proceeds based on specified rules (e.g., priority, rounding, pro-rata at multiple entity levels).
- Multiple Account Types
- Handles entitlements for different account types (retail, institutional, omnibus, nominee).
- Position Snapshotting
- Automatic capture of client holdings at record date/time for entitlement calculation.
- Residual and Adjustment Handling
- Ability to track, adjust, and process residual balances from corporate actions.
- Restatement Support
- Recomputes entitlements if official event details are restated post-processing.
Performance, Usability & Support
Operational, user interface, and vendor interaction criteria.
- Accessibility Compliance
- Meets accessibility standards (e.g., WCAG 2.1, Section 508).
- Average Event Processing Time
- Typical time taken for an event from ingestion to completion.
- Concurrent User Support
- Maximum number of active users supported simultaneously.
- Configurable User Profiles
- Users can set preferences and personalize dashboard views.
- Continuous System Monitoring
- Automated health checks and capacity alerts.
- Help Desk & Vendor Support
- 24/7 help desk and direct vendor escalation channels.
- Intuitive User Interface
- Ergonomic, easy-to-navigate, modern graphical user interface.
- Localization & Language Support
- Multi-language user interface and notifications.
- Release & Upgrade Management
- Clear release scheduling, user notification of enhancements/fixes, and rollback capabilities.
- User Documentation & Training
- Comprehensive user manuals, release notes, and system training provided.
Reporting & Analytics
Reporting, business intelligence, data export, and real-time analytics features.
- Ad Hoc Query Tools
- Advanced tools for users to build and run ad hoc data queries.
- Audit Trail Exports
- Exports of historical activity logs and changes for regulatory review.
- Automated Scheduled Reporting
- Configurable scheduled generation and distribution of key reports.
- Custom Report Builder
- User-driven custom report definition with parameterized queries.
- Data Visualization
- Inbuilt charts, graphs, or visualizations of key trends and volume statistics.
- Exception Reporting
- Reports on all process failures, breaks, or reconciliation mismatches.
- Export to Excel/CSV/PDF
- Support export of data and reports in common formats.
- Real-Time Metrics Dashboard
- Live dashboards presenting current event processing and workflow status.
- Role-Based Report Access
- Access to reports and dashboards based on user permissions.
- Standard Report Library
- Pre-built suite of reports (pending events, posted entitlements, breaks, etc.).
Security & Infrastructure
Technical, infrastructure, and cyber security characteristics of the product.
- Change Management Logging
- Tracks all configuration, patching, and upgrade activity with audit logs.
- Data Masking & Redaction
- Sensitive data masked in user interfaces and exports where appropriate.
- Disaster Recovery Capabilities
- Supporting failover, backup, and recovery in case of technical outages.
- Encryption In Transit & At Rest
- Data is encrypted both when stored and in transit between systems/users.
- Hosting Model (Cloud/On-Premise/Hybrid)
- System available for deployment in various infrastructure models.
- Multi-Factor Authentication (MFA)
- Supports strong user authentication mechanisms.
- Penetration Testing Certification
- Subject to regular external security testing and certification.
- Scalability
- Ability to scale for peak loads or volume growth.
- Single Sign-On (SSO)
- Integrates with enterprise identity and authentication providers.
- Uptime Guarantee
- Service-level agreement on system uptime.
Settlement and Posting
Capabilities related to creation, reconciliation, and posting of cash/securities resulting from corporate actions.
- Audit Trail for Settlement Changes
- Detailed logging of all settlement amendments or reversals.
- Auto Reconciliation
- Automated reconciliation of bookings with custodians, CSDs, or sub-ledgers.
- Automated Settlement Instructions
- Auto-generation of settlement entries for both cash and stock movements.
- Manual Overrides
- Users can manually adjust bookings or settlements with tracked authorization.
- Multi-Stage Settlement Workflow
- Configurable steps from preliminary to final settlement.
- Partial/Failed Settlement Handling
- Supports handling, reprocessing, and investigation of failed or partial settlements.
- Real-Time Posting
- Immediate posting of entitlements and movements to client and firm accounts.
- SWIFT/ISO Settlement Messaging
- Creates, sends, and consumes standardized settlement messages (e.g., MT564, ISO 20022).
- Settlement Confirmation Notifications
- Sends confirmations to clients or counterparties upon completion.
- Settlement Status Tracking
- Monitors status of cash/securities movement and highlights unsettled items.