Operations Newsflashes: CSFB Picks DTCC’s Corporate Actions Service, and more

CSFB Picks DTCC's Corporate Actions Service: SunGard Futures Expands GMI for Derivatives Processing

Credit Suisse First Boston (CSFB) has chosen the Global Corporate Action (GCA) Validation Service from Depository Trust & Clearing Corporation (DTCC) to automate its corporate-action announcements.

The GCA Validation Service gives customers access to a centralized source of "scrubbed" information about tender offers, conversions, stock splits and more than 100 other types of corporate actions for securities traded in Europe, Asia and the Americas.

"By signing onto GCA Validation, we're looking to eliminate the time-consuming manual process of reconciling corporate-action announcements and streamline our operation globally," states Joseph Porcello, director of asset servicing for CSFB in the United States Porcello also cites DTCC's proven track record in the corporate-action space and extensive experience working with complex financial transactions.

In addition to CSFB, five other global financial institutions already use the GCA Validation Service and a number of broker/dealers, banks and hedge funds are in negotiations with DTCC to begin using the service over the next several months, according to DTCC in the release.

The service is provided through Global Asset Solutions LLC, a DTCC subsidiary.

-SunGard Futures Expands GMI for Derivatives Processing

SunGard Futures Systems enhanced its GMI system for derivatives processing and accounting to process and clear energy contracts on the International Petroleum Exchange (IPE), the European Energy Derivatives Exchange (Endex) and the UK Power Exchange (UKPX). It also can clear and process contracts on LCH.Clearnet (LCH.CN) Enclear OTC Energy Services, which clear bilateral transactions.

Many of SunGard's energy customers are looking to aggregate and hedge their risks across markets, using one back-office system to help make the process more efficient and cost-effective, states Steve Auerbach, president of SunGard's GMI business unit, in the release. "GMI's latest enhancements help customers to efficiently clear complex energy and electricity contracts and reduce manual processes, while also serving as their central processing platform for all other listed derivatives and over-the-counter markets in which they participate," he adds in the release.

SunGard plans to expand GMI's energy offering by delivering capabilities for the European Energy Exchange (EEX) in Germany, Powernext in France, and Nord Pool in Scandinavia by July 2005.