Only 18 percent of international securities firms are expected to purchase corporate-actions technology within six months, according to a recent survey jointly commissioned by SmartStream and SWIFT, and conducted by CityIQ. Another 30 percent say they would choose a vendor within a 12 month period. However, 51 percent are in no rush and say they would not automate for at least a year.
With the low level of adoption of corporate-actions technologies, the survey notes, " ... the market cannot sustain the number of corporate-actions-vendor specialists that abound today. It is anticipated that consolidation will occur, with firms choosing their suppliers with an eye on their financial viability to ride out this prolonged take up."
Different responses from firms reflected the type of firm, the current level of automation, volumes and interaction with third parties. Asset managers and brokerage firms showed less interest in corporate-actions automation than custodian banks.
The survey was sent to 1700 individuals from more than 350 organizations. Responses were received from 242 companies.