In the world of corporate actions, automation has long been a common goal, but increasing complexity of events and lack of standardization has made it challenging to succeed. When judges reviewed the initiatives in the corporate actions space this year, there was one project that impressed by helping a client on the journey to achieving straight-through processing (STP) of corporate actions.
AIM Software won the award for Best Corporate Actions Data Initiative (Vendor) for helping a European asset management firm—with more than $400 billion of assets under management—improve corporate actions automation and reach a high STP rate.
The project started with four event types—interest, income, partial redemption and redemption at maturity—before gradually adding more types of notification. The events are first captured by the AIM Software corporate actions platform, GAIN Corporate Actions DM, from custodians, Swift, SIX Financial Information Valordata Feed, as well as from the static data system via Avaloq messages. The data is then cleansed and normalized to create a golden copy of events—AIM Software has named this its ‘data firewall’ because the idea is that data is shipshape before it can affect downstream processes, such as entitlement calculations and client notifications.
As part of the project at the asset management firm, phases one and two covered 85 percent of the entire volume of events in the system, and GAIN Corporate Actions DM was able to derive the correct asset flow template in more than 95 percent of cases, which helped the client achieve an STP rate of 80 percent for the 100,000 messages received annually.
Judges said AIM Software showed it was making “continued enhancements” in corporate actions, and the deployment “seems like a valuable tool for corporate actions teams”.
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