CORPORATE ACTIONS – DISTRIBUTIONS INSTRUCTIONS
Automating the Instructions Process for Certain Elective Dividend Events
The array of services the Depository Trust Company (DTC) offers for theprocessing of corporate action events include announcing details ofupcoming events and providing clients with information about theirentitlements, accepting and acting on their instructions, and collecting,allocating and reporting payments across various corporate action event
types including distributions, redemptions and reorganizations.

■ Events are easily tracked and linked using a unique corporate action

identifier (CA ID / COAF) that stays with the event throughout itslifecycle■ Instructions messaging enables clients to fully maximize the DTC ISO

20022 messaging flow from announcement through to allocation■ Clients can deploy by service – TaxRelief*, DRIP (including Opt Outs),

Zeroing in on the risks associated with communicating instructions
throughout the processing chain, DTC is now offering clients a way toreduce that risk and improve efficiency in the processing of corporate action

Risk Reduction

instructions.

■ Automation results in fewer or the outright elimination of manual

HOW ISO 20022 INSTRUCTIONS MESSAGING WORKS■ Client receives an automated ISO 20022 notification message (CANO)

from DTC announcing the corporate action event. The message contains
an indicator signaling that the event is eligible for ISO 20022 instruction
messaging■ If necessary, DTC sends a follow up ISO 20022 message informing

the client of the event’s options and eligibilities

Optional Dividends, FCP – for a phased approach

touches that could result in human error■ ISO 20022 offers the possibility of processing elections straight throughfrom investment manager to custodian to DTC, without humanintervention and without delay

ROBUST SUPPORT FOR EASE OF IMPLEMENTATION■ Award winning user guide aids clients in developing business and system

requirements■ Client submits an ISO 20022 instruction message (CAIN) to DTC■ DTC sends an ISO 20022 instruction status advice message (CAIS) backto the client■ DTC can provide test cases and scripts to accelerate test planning andease test execution■ Messages are simple and easy to construct, requiring a minimal number■ DTC sends the client an ISO 20022 message (CAPA) indicating its

projected payment/allocation■ After the client’s instructions have been processed and funds /securities

are received by DTC, an ISO 20022 message (CACO) confirming thepayment/allocation of proceeds is sent tothe client.

BENEFITS OF AUTOMATING THE INSTRUCTIONSCOMMUNICATIONS CHAIN WITH ISO 20022 MESSAGING
Efficiency Improvements■ Automating manual processes enables firms to re-deploy FTE resourcesof data elements

LIVE IN PRODUCTIONFirms are utilizing ISO 20022 messaging for TaxRelief*, DRIP(Opt Out), Optional Dividend and FCP (Interest and Principal) events today,continuing to prove its value. Firms interested in adopting this innovativetechnology are invited to contact their relationship manager.

FOR MORE INFORMATION
Contact your relationship manager and visit the DTCC Learning Center athttps://dtcclearning.com/products-and-services/asset-services.html.

elsewhere■ Clients can now participate in DTC’s Voluntary DRIP program, as

automation makes this high-volume election service more efficient■ Gains in timeliness through real-time messaging and straight throughprocessing*Note: Not all TaxRelief events and jurisdictions are supported. Please consult with DTC for details about the service scope.

ADVANCING FINANCIAL MARKETS. TOGETHER.™

© 2022 DTCC. All rights reserved. DTCC, DTCC (Stylized), ADVANCING FINANCIAL MARKETS. TOGETHER, and the Interlocker graphic are registered and unregistered trademarks ofThe Depository Trust & Clearing Corporation.
The services described above are provided under the “DTCC” brand name by certain affiliates of The Depository Trust & Clearing Corporation (“DTCC”). DTCC itself does not provide suchservices. Each of these affiliates is a separate legal entity, subject to the laws and regulations of the particular country or countries in which such entity operates. See www.dtcc.com for a
detailed description of DTCC, its affiliates and the services they offer. DTCC Public (White). 12073-WK03222022