Consultation Paper High level description, Nordic CSD Corporate ...

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posing the same proposals again does not mean that they would not have been accepted by the participants or that there would be any discrepancy or misunderstanding. Instead, we ask also those interested parties who have not read or answered the Clearing & Settlement consultation to comment on these common issues, especially from the Corporate Actions process point of view. page 10(62)
2 Executive summary The Nordic Single (NS) project aims to supply a service structure well suited as a Single Service Platform for depository & settlement systems within the Nordic countries. Background factors and drivers for the Nordic consolidation include synergy effects, cost-savings for clients, maintaining and strengthening the Nordic competitiveness, and the fact that foreign investors view the Nordic area as one market. This NCSD Consultation Paper on Corporate Actions lists a number of high level proposals relating to structure and functionality of Corporate Actions. The responses to the consultation, together with the input from other working groups within NCSD and possibly from some system assessments, will be used to formulate a White Paper describing a high level model for Corporate Actions in the Nordic region. The White Paper is to be followed by more detailed service descriptions and requirement specifications. At a general level, the Corporate Action Working Group has been unanimous in taking the ECSDA Corporate Action standards as the bottom-line for Nordic harmonisation, and implementing ISO standard messages in communication. The model should include Issuing Agent as a key role in Corporate Action processing. The Issuing Agent role should be supported and sufficient preconditions for its operations ensured. In order to promote STP the requirement is that NCSD should furnish the market with a central securities database where information on Issuers, securities and Corporate Actions is available. The Issuers should have an interface to the database and input Corporate Action data in due course. Processing the Corporate Action transactions in the settlement system and including at least all Nordic currencies into harmonised processes are general requirements. Many of the high-level requirements relate to STP and lowering the operational risk in the processes. Information should be exchanged electronically throughout the processes between the parties, and members should be able to efficiently handle the information in their services. Clear statements have been made in relation to harmonising Corporate Action schedules, striving towards DvP and enhancing the tradability of securities. page 11(62)
Page 1 and 2: NCSD Title Corporate Action Consult
Page 3 and 4: 6.1 DEFINITIONS AND ABBREVIATIONS .
Page 5 and 6: Nordic Corporate Action model and t
Page 7 and 8: Participant roles have been covered
Page 9: 1.4 Guidelines for reading and resp
Page 13 and 14: 3 International initiatives and sta
Page 15 and 16: ECSDA Corporate Action standards an
Page 17 and 18: 4.1.1 Securities account structure
Page 19 and 20: outines in place for the currency i
Page 21 and 22: settlement of a specific security,
Page 23 and 24: participants would need local membe
Page 25 and 26: Investor 1 Investor 2 Issuer Issuin
Page 27 and 28: Figure 5: Access areas for the Issu
Page 29 and 30: 4.3 Securities Database Background,
Page 31 and 32: We aim to achieve a harmonised busi
Page 33 and 34: 5.3 Definition of key dates and ent
Page 35 and 36: that the relationship, especially r
Page 37 and 38: database. This would among other th
Page 39 and 40: Action related notifications from N
Page 41 and 42: Proposal [CA 22] Issuing Agents sho
Page 43 and 44: 5.5.2 Mandatory distributions witho
Page 45 and 46: choose from two or several options
Page 47 and 48: Once the distribution of the rights
Page 49 and 50: The automated market claims functio
Page 51 and 52: Dependencies and implications In or
Page 53 and 54: Proposal [ID: 7C] Check for payment
Page 55 and 56: Dependencies and implications Autom
Page 57 and 58: A consequence of integrating the Co
Page 59 and 60: Interim shares A share that an inve
Page 61 and 62:
6.2 Appendix II - Working Group Par
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