As the biggest U.S. corporations begin using XBRL this month to file reports with the Securities and Exchange Commission (SEC), a trio of financial services industry organizations is already trying to build on that requirement to promote the use of XBRL for the announcements of corporate actions.

The Depository Trust Clearing Corp. (DTCC), SWIFT and XBRL U.S. said last month that they are joining forces to create an XBRL taxonomy for corporate actions, such as mergers, stock splits and dividend payments. In addition, DTCC will develop a system that creates a unique identifier for each corporate action announcement.

Extending the use of XBRL to tag corporate actions would allow financial services firms to boost their efficiency and eliminate manual errors by using more straight-through processing (STP) in their communications because the XBRL tags can be automatically translated into SWIFT's ISO messaging standard.

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Susan Kelly

Susan Kelly is a business journalist who has written for Treasury & Risk, FierceCFO, Global Finance, Financial Week, Bridge News and The Bond Buyer.