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

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The major challenges discovered during the work comprise of the task of agreeing, and in practise harmonising the four different countries into one common market practise, different fiscal regulation and practises, and harmonising four currencies into one Corporate Actions payment model. The scope of this Consultation Paper includes such securities that currently have been registered in the Nordic CSDs. This however, does not imply any limitation in the future scope of the NCSD services. Mutual funds will be analysed in a separate study within the Nordic Single project and thus they are not included in this consultation. page 12(62)
3 International initiatives and standards Many organisations, both authorities and market participants or their associations, have published initiatives on harmonising the securities market. The first significant initiative, Clearance and Settlement Systems in the World’s Securities Markets, was published by the Group of 30 in 1989. Probably the best known and almost globally implemented standard from that publication is the T + 3 settlement cycle. The trigger for all harmonisation initiatives is the remarkable growth in cross border trading. Instead of investing only in domestic securities both institutional and private investors have diversified their portfolios globally. The need for harmonisation pertains to message types, interfaces and processes. 3.1 European Commission’s initiatives In 1996 the EU Commission established a committee that received the mandate to identify inefficiencies in EU financial markets and to propose practical solutions to improve market integration. The group is chaired by Alberto Giovannini. The Group has produced four reports. The first report on the impact of the introduction of the Euro on capital markets was published in July 1997. It is widely acknowledged as having been a major force in forcing a common approach to the re-denomination of public debt into Euro and in establishing common bond market conventions for the Euro-area. Since then, the Group has published reports on the EU repo market, on co-ordinated public debt issuance in the Euro area, and a report on EU cross-border clearing and settlement arrangements. The Giovannini Group published its second report, Second Report on EU Clearing and Settlement Arrangements, in April 2003. The Group identified fifteen barriers to efficient clearing and settlement in the EU area. The removal of each barrier was addressed to different organisations like SWIFT, ECSDA and ANNA. The Group also set up a schedule for the removal of the barriers. So far one barrier (Barrier 8, National differences in issuance practice, ISIN allocation) has been fully removed. The efforts to remove the page 13(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 and 10: 1.4 Guidelines for reading and resp
Page 11: 2 Executive summary The Nordic Sing
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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