Corporate Actions Automation: Making Progress on an Old Problem
Report Summary
Corporate Actions Automation: Making Progress on an Old Problem
Front-office interest in corporate actions processing is at an all-time high as a renewed emphasis on risk permeates the industry.
Boston, December 15, 2010 – A new report from Aite Group explores the current, global trend of financial institutions automating corporate actions processing by investing in improved technology and processes. It also profiles and compares the vendors of solutions commercially available to the market.
Processing corporate actions can be hugely complex for financial institutions, with more than 60 types of corporate actions with which to deal. Missteps hurt the industry in the form of operational inefficiencies and loss of capital, and even more is then spent trying to rectify mistakes and find manual solutions. Where many firms once devoted capital to settle for losses caused by corporate actions processing mistakes, a growing trend is to instead invest this money into improved technology and processes to avoid the mistakes altogether. Aite Group estimates that approximately US$70 million will be spent on corporate actions processing solutions in 2010, growing to approximately US$93 million in 2015.
Front-office interest in corporate actions processing is at an all-time high as a renewed emphasis on risk permeates the industry. Users are pushing toward more evolved workflow and monitoring capabilities to better automate the more difficult aspects of corporate actions processing: entitlement, elections, and settlement. Progress is being made in these areas, but large gaps remain.
“Growth in the corporate actions processing marketplace will be driven by a continued focus on risk management and trading optimization,” says Fritz McCormick, senior analyst with Aite Group and author of this report. “Addressing issues with corporate actions processing has been an ongoing effort for the past decade. Third-party solutions are evolving to address a larger portion of this problem, and helping the industry make progress.”
The report profiles and compares corporate actions processing solutions available from Information Mosaic, Polaris Software Labs, SmartStream Technologies, Tata Consultancy Services (TCS), Vermeg, and Xcitek Solutions Plus (XSP).
This 34-page Impact Report contains six figures and 10 tables. Clients of Aite Group's Institutional Securities & Investments service or Wealth Management service can download the report.