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

• Issuance of securities
• Transactions in securities
• Income or yield payments including taxation
• Changes in the basic information of the Issuers and the securities
• General meetings and re-registration process
• Lists of holdings
The Nordic CSDs offer a wide range of services covering all of the Corporate
Action areas.
Securities can, according to their nature or legal status, be divided into Equity
Market, Fixed Income Market and Derivatives Market. In this consultation all
security types currently being registered in the Nordic CSDs have been taken
into account. Equity and fixed income are the biggest markets. In addition,
Nordic CSDs have registered several other security types which are typically
traded on the stock exchange. Many of these securities have a listed equity as
an underlying asset, such as covered warrants.
Mutual funds have been excluded from this Consultation Paper. They are
covered instead in a separate study within the Nordic Single project. It is
noted that the mutual funds is one of the fastest growing areas with regard to
financial instruments. Currently the Nordic CSDs have very different service
offerings for mutual funds. Due to the importance of this market segment
NCSD has separated the requirements and business model studies of this area
from other Corporate Actions areas.
Corporate Actions in securities from outside the Nordic countries have not
been studied in this work and they are excluded from this Consultation Paper.
Tax issues and practises are typically very different between the countries and
there are small possibilities of any harmonisation. We have not studied
taxation-related matters or processes within this work. Most probably the
taxation processes will anyway remain local and will be attached to the
harmonised Nordic Corporate Action model on the country level.
Of the Corporate Action processes, the incorporation of new companies
typically follows national legislation and has not been included in this
Consultation Paper. Some other issues of an administrative nature, such as
change of the name of the Issuer, will be included in the future work.
page 6(62)