Spending on corporate actions has steadily increased in the last three years, rising from US$121 million in 2004 to US$285 million in 2007.
Boston, MA, January 9, 2008 – A new report from Aite Group, LLC provides an overview of corporate actions solutions providers and serves as a first step in selecting an appropriate vendor.
Difficult to understand, and even more difficult to process, much less in an automated STP fashion, corporate actions were (and still are) too often seen as a boring and risky business. Fortunately, a number of vendors have made dealing with corporate actions much simpler. Spending on corporate actions has steadily increased in the last three years, rising from US$121 million in 2004 to US$285 million in 2007, with the largest portion of this allocated to integration (US$107 million in 2007) and software solutions (US$64 million in 2007). This is projected to climb steadily in the coming years, with more and more assets being allocated to the development and purchase of corporate actions software solutions. As firms seek to further reduce risk from corporate actions, Aite Group expects to see more funding given to solutions which are able to increase productivity and reduce risk.
"In the coming year, there will be major changes to the standards and best practices utilized in corporate actions and firms will have to ensure that their daily corporate actions process is up to snuff in order to be prepared for the coming changes," says Phillip Silitschanu, senior analyst and author of this report. "Having a corporate actions solution, which is properly installed and utilized, is a major first step in preparedness."
This 75-page Impact Report contains 19 Figures and 22 Tables, and profiles nine corporate actions solutions vendors: Asset Control, CheckFree, Fidelity ActionsXchange, Information Mosaic, Infosys, MileStone Group, SmartStream, Tata Consultancy Services, and Xcitek Solutions Plus. It is the first in a two-part series on corporate actions (the upcoming report will provide an overview of the corporate actions space). Clients of Aite Group's Wealth Management and Institutional Securities & Investments service can download the report.