The transformation project introduces the new ISO 20022 messaging alongside a browser-based Graphical User Interface (GUI). Message subscriptions are available to allow clients to control the flow of data.
Messages are transported using one of the two networks, with the following protocols: • SMART (DTCC Proprietary Network)
o MQ (Real time single threaded messages)
o NDM (File based protocol which runs in 16 batches throughout the day) o FTP (File based protocol which runs in 16 batches throughout the day) • SWIFT
o InterAct Store and Forward (Real time single threaded messages)
o FileAct (File based protocol which runs in 16 batches throughout the day) SMART
Customers considering using the SMART network should contact their DTCC Relationship Manager to determine if they have a SMART circuit currently in place. If so, DTCC will perform bandwidth utilization studies on the current lines to determine if an upgrade to a larger circuit is necessary. There is no cost for transmitting messages via SMART, but customers do have to pay for the circuit
Getting Started With Corporate Actions ISO 20022 Announcements Messaging 32 itself. Pricing – which is a direct pass-through from the telephone company servicing the line – is fixed based on circuit size.
SWIFT
Customers considering the SWIFT network should contact their SWIFT Relationship Manager for provisioning and pricing details.
These communication methods allow DTCC clients to benefit from:
• Increased availability and timeliness for corporate actions data: Customers benefit from the enhanced processing engine that allows for CA messages to be updated and published throughout the day. Updates are applied to existing events at intervals, for dissemination. • Subscriptions: Subscription options exist for three main event groups: Distributions,
Reorganizations and Redemptions. Within each event group, clients are able to choose to receive messages intra-day or end of day using various message protocols, depending on the criticality of the event. Additional information can be found immediately below.
Subscription Options
DTCC provides a subscription model to allow clients to choose how they receive their messages. Subscriptions allow clients to choose:
• Event groups such as Distributions, Redemptions, Reorganizations, and several others • The timing and frequency of announcements;
• To receive events based on “final” or “non-final” (Incomplete) workflow statuses. The project introduces frequent intra-day announcements of corporate actions data.
Customers are able to set subscription options to select the receipt of data from DTCC in a variety of methods, including timing and content. For example, DTCC allows the customer to choose how frequently data is received based on their needs. In the event a customer chooses to receive data less frequently throughout the day, unread event messages will remain queued for each customer until the next time the customer extracts the data. In addition to the frequent availability of new messages, subscription options allow customers to configure the data in a variety of ways. The ability to customize the receipt of data allows all participants to optimize the service to suit their specific business needs.
Dividend Distribution, Redemption, Maturity (Cash) and Reorganization event group data is updated and available through the DTCC ISO 20022 messaging hub throughout each business day.
Historically, Participants have accessed CA event information using the DTCC Computer-to- Computer Facility (CCF) file transmissions once at the end of the business day (or in the case of certain situations, in hourly slices throughout the day). With the new messaging, clients can receive
Getting Started With Corporate Actions ISO 20022 Announcements Messaging 33 messages in real time, however, ISO 20022 allows events to be made available in an on-demand schedule that suits each customer. Customers who wish to continue with the current Proprietary Files will still have the option to do so beyond their sunset date, for a fee.
Participants are able to select, for each category of events, whether to receive notifications intra- day or at the end of the day.
The following table illustrates the subscription options available for the different types of corporate action announcement:
CA Type Real Time Option - MQ Timing Options* - File
Distribution All announcements available in
real time All announcements available intraday, at 1:30, 3:30, 6:00, 9:00, 11:00, 12:00, 13:00, 14:00, 15:00, 16:00, 17:00, 18:00, 19:00, 20:00, 21:00, 23:30 Redemption All announcements available in
real time All announcements available intraday, at 1:30, 3:30, 6:00, 9:00, 11:00, 12:00, 13:00, 14:00, 15:00, 16:00, 17:00, 18:00, 19:00, 20:00, 21:00, 23:30 Reorganization All announcements available in
real time All announcements available intraday, at 1:30, 3:30, 6:00, 9:00, 11:00, 12:00, 13:00, 14:00, 15:00, 16:00, 17:00, 18:00, 19:00, 20:00, 21:00, 23:30
*Timing Options – a client may take one, all or any combination of times listed
The following table illustrates the subscription options available for the different types of corporate action lifecycle messages:
Message Type Availability
CANO-E: CA Notification with Eligible Balance
(Record Date Entitlements) Via MQ and via File Daily, 2 p.m. ET* (P&I) -and/or-
Daily 11:30 p.m. ET (P&I, MMI)
*2 p.m. ET CANO-E for P&I is ONLY for late announcements created before 1:45 p.m. on payable date
Getting Started With Corporate Actions ISO 20022 Announcements Messaging 34
Message Type Availability
CAPA CA: Movement Preliminary Advice
(Projected Payments) All new messages sent on pay date minus 7 days and REPL (replacement/delta) pay date minus 1* –or—
All new messages sent each day thereafter until REPL messages pay date minus 1 day
Daily 1:30 a.m. ET (CAD, P&I, MMI STKD)
• Processing triggered at 1 a.m. and can run up until 2 a.m. ET
• MQ messages can be received starting ~1:02 a.m., ending by 2 a.m. ET
• Files (depending on volume) are usually delivered ~1:30 a.m. ET
*Pay date minus 1 is actually pay date at ~1 a.m. ET CAPC: CA Preliminary Advice Cancellation
(Projected Payments Cancellation) (New) Via MQ – Real time, every half hour between 10:30 a.m. ET and 6:30 p.m. ET plus 1:30 a.m. (CAD, P&I, MMI, STKD)
Via File -- Daily 1:30 a.m. ET (CAD, P&I, MMI STKD) CACO: CA Movement Confirmation
(Allocations/Payments) Via MQ – Real time, every 20 minutes between 8:30 a.m. ET and 4:30 p.m. ET (CAD, P&I, MMI) Via MQ – Real time, between 8:20 a.m. ET and 7 p.m. ET (STKD)
Via File – Daily 4 p.m. ET (P&I, MMI) –and/or- Via file – Daily 7 p.m. ET and/or 1:30 a.m. ET (STKD) CARE: CA Movement Reversal Advice (New) Via MQ – Real time, every 20 minutes between
8:30 a.m. ET and 4:30 p.m. ET (CAD, P&I) Via File – Daily 4 p.m. ET (P&I)
CAPS: CA Event Processing Status Advice
(Unallocated Positions) Daily at 4 p.m. ET (CAD, MMI) –and/or-- Daily at 5 p.m. ET (P&I) Daily at 7 p.m. ET (P&I, STKD)
Times are the same for file and MQ except real time option for P&I, hourly between 1 p.m. and 7 p.m. ET
Clients can replace the manual instruction process via CA Web with automated instruction messaging via ISO 20022 for:
Getting Started With Corporate Actions ISO 20022 Announcements Messaging 35 • DRIPS
• Optional Distributions • Foreign Currency • Foreign Tax Withholding
The following table illustrates the subscription options available for the different types of corporate action lifecycle messages:
CAST: CA Instruction Statement Report (Displays all elected and unelected positions, by
event)(New)
Via MQ or batch file
Once, end of day at 11:00 p.m. ET
• Message will be sent each day, 5 days before cut off date and up until that date Inbound CAIN/CAIC and Outbound CAIS/CACS Via MQ only – Real time, for the following
services only
• Foreign Currency Payments
• Foreign Tax Withholding (TaxRelief) • Optional Distributions
• DRIPS
As part of the On-boarding process detailed in Section 5 of this document, clients should work with their Relationship Manager and the DTCC CA Transformation support team to understand the various messaging options and, ultimately, how to subscribe to them.
The following are the different ISO message groups that are available: ISO 20022 Message
Group Distributions Redemptions Reorganization
Announcements In Production (Nov 2011) In Production (Nov 2011) In Production (Nov 2011) Entitlements &
Allocations In Production (Feb 2013) Q3 2015 TBD
Instructions In Production (March 2015)
Getting Started With Corporate Actions ISO 20022 Announcements Messaging 36 CCF Legacy File Interface and Scheduling
Existing files will continue to be made available according to the current schedule. The 20022 messaging format and hub is compatible with the SWIFT, SMART and MQ messaging standards. DTCC also provides additional messaging protocols -- FileAct for SWIFT; and NDM, File and FTP for SMART.
Data Files and Messaging Co-Existence
DTCC plans to begin decommissioning the legacy files beginning December 31, 2015. Until then, DTCC will support both legacy files (CCF) and the new ISO 20022 messages. During this period there will be limited changes -- except in Phase 5 to Reorg processing -- to the legacy files.
Technical Transition Considerations
The format of the ISO 20022 CA event differs from that of the DTC CCF Files. Customers should prepare for the transition to ISO 20022 by viewing the technical specifications available on DTCC’s website: www.dtcc.com/catransformation and ISO 20022 model and repository on
www.iso20022.org
While the event-based messages in ISO 20022 offer complete coverage of the Function Code driven CCF files in terms of data elements, the structure of the ISO Messages allows for multiple payouts, options and information not available from DTC in the past. The processing of the new ISO 20022 messages will require processing changes for customers who currently utilize the CCF legacy files. Customer Testing
DTCC understands that customers will have to make changes to incorporate the new ISO 20022 messages into their internal systems and is prepared to support client testing efforts. Please forward all questions to the corporate actions transformation mailbox at [email protected]. The DTC corporate actions team will also provide additional assistance via periodic meetings, as needed. Parallel testing with DTC is encouraged. Clients should take advantage of the period of time when CCF files are still available concurrently with ISO 20022 messages.
Getting Started With Corporate Actions ISO 20022 Announcements Messaging 37