Reinventing corporate actions for a real-time market
The 2025 SIFMA Global Capital Actions Forum held on October 16th in New York City gathered regulators, exchanges, transfer agents, custodians, and technology leaders to chart the next era of corporate actions in global capital markets. Discussions reflected accelerating alignment between regulation, technology, and operations to support faster and smarter market functions. As 2026 approaches, these developments are setting the stage for a more dynamic and connected capital markets ecosystem.
Trend 1: Regulatory convergence and market readiness
Regulators and exchanges underscored a shift toward greater procedural clarity and synchronization. The move from a five‑day to a ten‑calendar‑day notice period for reverse stock splits reflects closer alignment with SEC expectations. At the same time, conversations continue around how issuers and transfer agents handle fractional share rounding and disclosures, particularly for beneficial holders.
The expansion of trading hours dominated much of the discussion. Exchanges remain cautious, examining how overnight sessions could affect data timing, halts, and post‑trade processing. Participants raised concerns about maintaining system integrity given only one hour of overnight downtime for reconciliation. FINRA and the exchanges are jointly evaluating rule changes that could formalize halting procedures for corporate actions executed in 24‑hour trading cycles. Nasdaq’s recently proposed accelerated delisting criteria for distressed issuers reinforces the drive toward faster resolutions and higher market quality.
Trend 2: Modernization and operational synchronization
Transfer agents and corporate action service providers agreed that modernization is both overdue and increasingly complex. Participants noted that tender offers extending to midnight and inconsistent event cut‑offs continue to stress legacy systems. Better alignment among issuers, transfer agents, and intermediaries was identified as a prerequisite for modernization.
The industry is converging on the need for standardized templates and coordinated timing structures to reduce confusion, eliminate manual intervention, and bring corporate events closer to real‑time processing. Operational synchronization—supported by stronger data sharing across market participants—was viewed as a critical building block for faster settlement environments like T+1 and beyond.
Trend 3: Tax transparency and global alignment
Tax operations experts and custodians explored cross‑border tax tracking and withholding challenges for ADRs and synthetic positions. Divergent country rates and inconsistent withholding treatments continue to create compliance exposure for firms managing loans or short positions.
Proposals to standardize income tracking using the highest available DTC withholding rate would reduce discrepancies and improve global comparability. As more jurisdictions introduce real‑time tax reporting, firms will need end‑to‑end transparency across custody, lending, and settlement functions to maintain compliance at speed.
Trend 4: Artificial intelligence and the next data revolution
Technology and clearinghouse leaders emphasized how artificial intelligence is redefining corporate actions as a data‑centric discipline. AI systems can baseline event data across markets, detect anomalies automatically, and identify discrepancies long before settlement. This advancement enables near‑instant reconciliation while reducing operational risk.
Panelists agreed that successful adoption will require cultural and process transformation, not just new software. Firms must cultivate data governance, cross‑functional agility, and embedded AI literacy to fully leverage predictive automation in corporate event processing.
Looking ahead: Building a dynamic 2026 market infrastructure
The closing sessions pointed toward a year of rapid transformation. Panels explored 24‑hour trading, T+1 settlement in Europe and the UK, and the European Union’s FASTER directive—all signaling a shift to continuous global capital flows.
Industry participants stressed that success in 2026 will depend on collaboration across regulators, data providers, and market operators. Integrated systems, standardized disclosures, and next‑generation analytics are laying the foundation for more fluid and transparent markets. The innovations discussed at SIFMA 2025 mark the beginning of a new era where information moves as quickly as capital itself.
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