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Corporate
Actions
Patent
TCS granted patent for unifying Corporate
Actions processing across large global banks
By Devesh Gupta, Product Head, Corporate Actions, TCS Financial Solutions
For more than a decade, TCS Financial
Solutions has been working with the investment
banking and custody divisions of major financial
institutions to deliver continuous improvement
and technological innovation to meet the
business challenge of managing corporate actions
(CA) information.
On July 30, 2019, TCS was granted a patent for
its innovative method of handling CA information
for multi-entity financial institutions.
Investment banks and custodians both have an
essential need for information about corporate
actions (CA), which are material announcements
pertaining to equity or debt that include
dividends, stock splits, rights issues, and M&A
announcements. Although investment banks
and custodians respond to different corporate
actions in different ways, both rely upon the same
underlying data.
Yet global financial institutions have typically
maintained their investment banks and custody
divisions as separate operations, further divided
by country or geographic region. Through this
approach, separate divisions have had to procure,
provision and support multiple systems for
managing CA data, resulting in duplicate costs for
software licenses, hardware, vendor management,
upgrades and maintenance. The higher costs
of maintaining two different CA systems
also resulted in underinvestment in system
enhancements, often leading to discrepancies
between data feeds from these systems.
In response, TCS envisioned an improved
method and optimized system for CA processing
that would support investment banks and
custodians through a single user interface.
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