1b. Corporate actions:
what is the problem?
2.
Diversity of events and the need to interpret them is another major risk trigger
Not all events are created (or represented) equal.
The fact that a single dividend event can be classified differently across multiple global markets and across multiple custodians is a major driver of cost and risk for investors today - as they seek to forge consistency across their portfolio holdings.
...and time is money
These challenges are especially acute for elective (and often highly complex) events, such as spin-offs and rights issues.
Today, elective events are responsible for 50% of all manual processing in corporate actions - creating a significant cost and risk burden for investors across the industry.
Owing to the highly qualitative and manual nature of these events, the cost of errors for these events will increase the average cost of an elective event in the US by 25% in the next three years.
In this context, the need for event lifecycle automation and system investment is clearly pressing.
