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

Contents
1 INTRODUCTION ........................................................................................................................4
1.1 BACKGROUND.........................................................................................................................4
1.2 OBJECTIVE, SCOPE AND METHODOLOGY .................................................................................5
1.3 THE CONSULTATION PROCESS AND THE ROADMAP TO A WHITE PAPER...................................7
1.4 GUIDELINES FOR READING AND RESPONSES............................................................................9
2 EXECUTIVE SUMMARY ........................................................................................................11
3 INTERNATIONAL INITIATIVES AND STANDARDS .......................................................13
3.1 EUROPEAN COMMISSION’S INITIATIVES................................................................................13
3.2 EUROPEAN CENTRAL SECURITIES DEPOSITORIES ASSOCIATION, ECSDA............................14
4 STRUCTURAL ISSUES............................................................................................................16
4.1 ACCOUNT STRUCTURE ..........................................................................................................16
4.1.1 Securities account structure.........................................................................................17
4.1.2 Securities account structure and Corporate Actions ...................................................19
4.2 PARTICIPANTS, ISSUERS AND ACCESS...................................................................................21
4.2.1 Participant roles ..........................................................................................................21
4.2.2 Membership and access...............................................................................................22
4.2.3 Issuing Agent ...............................................................................................................23
4.2.4 Issuer Access................................................................................................................27
4.3 SECURITIES DATABASE.........................................................................................................29
5 CORPORATE ACTIONS .........................................................................................................30
5.1 GENERAL OBJECTIVES...........................................................................................................30
5.2 CORE CSD CORPORATE ACTION SERVICES...........................................................................32
5.3 DEFINITION OF KEY DATES AND ENTITLEMENTS ...................................................................33
5.3.1 Key dates......................................................................................................................33
5.3.2 Determination of entitlement .......................................................................................35
5.4 FLOW OF CORPORATE ACTION DATA ....................................................................................36
5.4.1 Corporate Action notifications ....................................................................................37
5.4.2 Corporate Action instructions......................................................................................39
5.5 PROCESSING OF CORPORATE ACTIONS .................................................................................40
5.5.1 Issuance of securities...................................................................................................40
5.5.2 Mandatory distributions without options.....................................................................43
5.5.3 Mandatory reorganisation without options .................................................................43
5.5.4 Mandatory distributions with options..........................................................................44
5.5.5 Mandatory reorganisations with options.....................................................................44
5.5.6 Voluntary reorganisations with options.......................................................................45
5.5.7 Automated market claims related to Corporate Actions..............................................48
5.5.8 General meeting and proxy voting...............................................................................49
5.6 CORPORATE ACTION PAYMENTS ..........................................................................................51
5.6.1 Trade settlement and Corporate Action settlement......................................................51
5.6.2 Linking and prioritisation functionality.......................................................................53
5.6.3 Corporate Action related addition to the payment model............................................55
6 APPENDIX .................................................................................................................................58
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