Corporate Actions Processing: Introduction, Example & Course Outline for CA Processing

What are Corporate Actions? How are they processed? In this article, we will give a brief introduction about the various sub topics involved in the Corporate Actions Processing.
Despite all kinds of computer automation and programs available, the Corporate Actions processing still is dependent upon the manual processing. Although many systems claim to have the Corporate Actions processing through automation or So called Straight through processing (STP), the truth is that it still requires a lot of manual intervention and pre-processing setup. Hence, it is very important for a financial professional to become familiar with the Corporate Actions Processing and the various concepts and steps involved.


-- What is a corporate action event and why is it important?:
The details and introduction to CA Processing and what is the financial importance of the Corporate Actions Processing.

-- Types of corporate action events in Corporate Actions Processing:

 Mandatory Corporate Actions

 Voluntary Corporate Actions

-- The role of market data in Corporate Actions Processing:

 Details of the Corporate Actions event

  -Types of Corporate Actions Processing

  -New values of Corporate Actions Processing

  -Ratio calculations in Corporate Actions Processing

  -Dates and their importance in Corporate Actions Processing

 Sources of market data for Corporate Actions Processing

  -Vendors - data required from vendors for Corporate Actions Processing

  -Specialties about Corporate Actions Processing

  -Scrubbing the data for Corporate Actions Processing

-- Industry Utilities for Corporate Actions Processing:

 Off-the-shelf applications - Intro to some ready available software applications for Corporate Actions Processing

 DTC RIPS

-- Processing Voluntary Events in Corporate Actions Processing:

 Types of Corporate Actions Processing

  -Conversions in Corporate Actions Processing

  -Exercises in Corporate Actions Processing

  -Investments factors in Corporate Actions Processing

  -Tenders in Corporate Actions Processing

 Typical work flow for Corporate Actions Processing

 Case Study about Corporate Actions Processing

-- Processing Mandatory Events in Corporate Actions Processing

  Types of Corporate Actions Processing

  -Bankruptcy case in Corporate Actions Processing

  -Call options in Corporate Actions Processing

  -Merger in Corporate Actions Processing

 Typical work flow of Corporate Actions Processing

 Case Study

-- Risks in Corporate Actions Processing:

 Types of Risks in Corporate Actions Processing

 Impact of failure or mismanagement or mishandling in Corporate Actions Processing

 Mitigation alternatives in Corporate Actions Processing Risks

-- Global Perspective in Corporate Actions Processing:

 Differences in data collection and processing

 Unique operations-related challenges

 Impact on the US operation

-- Evolving Trends in Corporate Actions Processing

 New events, new outcome comes with new challenges

 Event data warehouse

 Event data guarantee of accuracy

 Should an industry utility develop a partial or total solution?