The new service is designed to meet the industry's demand for corporate actions standardisation and Straight Through Processing. Clients such as custodian banks, depository agents and brokers can subscribe to the service at a fee. They can benefit from significant time and cost savings as well as eliminating the risk of manually converting the data into their own internal systems.
The service available will be launched in two phases, beginning with dividends and bonus payment announcement in phase one. In the next phase, more corporate actions information such as rights issue will be included.
Mr Daniel Tan, EVP and Head of Operations of SGX, said, "Corporate Action information is an integral part of data information for market intermediaries and investors. The new service is part of our continual efforts to meet market participants' demand for standardised information dissemination through a secure and reliable network, and to facilitate their investments decisions."
The initiative of structured corporate actions data is led by the Securities Market Practice Group (SMPG) and is chaired by DBS Bank. Sandeep Mehta, Senior Vice-President of DBS Investor Services Operations and Chairman of SMPG, said, "The key benefit here is that depository agents and custodians will receive structured corporate action data which will minimise the risk of misinterpretation and cut turnaround time for information dissemination to investors."
