Corporate actions processing is complex, involving 80 corporate event types including mergers, spin-offs, stock buybacks, name changes and bankruptcies, as well as income events such as dividends, interest payments and called bonds. A single corporate action event can dictate mandatory or voluntary action with multiple options, requiring operations staff and securities processing systems to deal with position changes, settlement and distribution. At the same time, financial institutions continue to seek ways to mitigate costs, control risk and improve efficiencies in an increasingly challenging and volatile economic environment. SunGardâs Phase3 integrated with the XSP platform provides an automated straight-through process for corporate actions that helps customers reduce the cost of hardware, support and maintenance as well as helping simplify their processing environments.
Brendan P. Farrell, Jr., chief executive officer at XSP, said, âThe seamless integration of the XSP v5 platform with Phase3 will help SunGard customers to automate their corporate actions processing and mitigate risk in this area, while also helping them to more effectively achieve day-to-day operational goals.â
Gerry Murphy, president of SunGardâs brokerage and clearance business, said, âBy integrating the XSP solution with SunGardâs Phase3 in a hosted environment, we can offer customers greater flexibility and efficiency as well as reduced cost and fewer errors. This will help customers control the operational risks associated with processing corporate actions, and help them streamline the reconciliation of events and changes in positions and settlement. This solution is suited to large retail broker-dealers, as well as financial institutions that wish to use multiple sources of vendor data and require global corporate actions processing.â
The XSP v5 platform helps automate the processing of global corporate actions. XSP has re-engineered its platform using Microsoft technologies. The XSP v5 platform is built around a service-oriented architecture (SOA), utilizing Microsoft .NET components and Web Services for global enterprise-wide processing. Accredited with the SWIFTReady label, the XSP v5 platform is SWIFT 15022 compliant.