Corporate actions notification€¦ · Corporate Action Notification – a notification of an upcoming corporate action to clients with securities balances on current date/date of

Corporate actions notification

18.04.2016

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KEY TASKS RELATED TO INFORMING ABOUT CORPORATE ACTIONS

Increasing the level of the clients’ awareness about corporate actions (CA)

Unification and standardizing of CA processing

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New formats of messages for LUCH and SWIFT

Using ISO20022 and ISO15022 standards

Unification of CA on Russian and Foreign securities

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ISO STANDARDS

ISO20022

ISO15022

CORPORATE ACTIONS

GENERAL MEETINGS AND VOTING

BONDS

SHARES

TYPES OF SECURITIES

FOREIGN SECURITIES

CATEGORIES OF SECURITIES

SECURITIES OF RUSSIAN ISSUERS

UNITS

DEPOSITORY RECIEPTS

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TYPES OF MESSAGES

ISO20022 ISO15022

Meeting Notification (seev.001.001.04)

MT564 – Notification (NEWM, REPL, RMDR)

Meeting Result Dissemination (seev.008.001.04)

MT564 – Notification (NEWM, REPL)

Meeting Cancellation (seev.002.001.04)

MT564 – Notification (WITH, CANC)

Notification of the meeting

Notification of the meeting’s results

Notification of the meeting’s cancellation

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Corporate Action Notification (seev.031.001.04)

MT564 – Notification (NEWM, REPL, RMDR)

Corporate Action Cancellation Advice (seev.039.001.04)

MT564 – Cancellation (WITH, CANC)

Notification of CA

Notification of the canceled CA

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DESCRIPTION OF MESSAGE TYPES

Corporate Action Notification – a notification of an upcoming corporate action to clients with securities balances on current date/date of receipt of information by NSD or on record date. Notification is sent nor later than the date of the corporate action.

Corporate Action Cancellation Advice – a notification of a cancellation of the upcoming corporate action that is sent to the client in case the cancellation initiated by an issuer/initiator of the corporate action.

Meeting Notification – a notification of an upcoming General meeting that is sent to the clients with securities balances on the date of receipt of information or on the record date.

Meeting Results Dissemination – a notification of the results of General meeting that includes information about the meeting’s results and sent to the clients with securities balances as of the record date.

Meeting Cancellation – a notification of a cancellation of the upcoming General meeting that is sent to the clients if the cancellation initiated by an issuer/initiator of the meeting.

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MESSAGE FORMATS

ISO20022

File format: HTML Channel: LUCH

File format: XML Channel: LUCH Channel: NRDirect

ISO15022

File format: TXT Channel: SWIFT

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OPTIONS FOR THE CLIENTS

• HTML

Message format • XML

• SWIFT

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HTML MESSAGES CHARACTERISTICS

One message is formed for all securities involved in a corporate

action.

The message does not include balances on securities account.

If several securities are involved in the corporate action, the CA reference by issuer is used. However unique references by securities are also included.

Two securities are involved in

the General Meeting:

ISIN1

ISIN2

A client has 3 securities accounts:

Account 1

Account 2

Account 3

The client will receive 1 HTML

message

Example

No accounts/ ISIN1+ISIN2

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DIFFERENCES OF HTML MESSAGES FROM THE PREVIOUS VERSION

A message is formed on the basis of XML that meets ISO20022

requirements.

A message can be formed in Russian and English.

A message includes an indication of the function – new message or replacement message (amendment).

A replacement message includes a reference (link) to the previous message.

LUCH journal of incoming HTML messages displays key attributes of the corporate action and information about the issuer.

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XML MESSAGE CHARACTERISTICS

Separate messages are produced for each securities account of a

client and for each security. Cyrillic text is transmitted directly, without transliteration

Unique CA reference by securities is used.

Single message is produced for General meetings which includes

information about all involved securities involved in compliance with ISO20022 standard.

Two securities are involved in a meeting:

ISIN1, ISIN2

A client has 2 accounts:

Account 1

Account 2

The client will receive 2 XML messages

Example for General meetings

Account 1/ ISIN1+ISIN2

Account 2/ ISIN1+ISIN2

Two securities are involved in a corporate

actions:

ISIN1, ISIN2


Account 1

Account 2

The client will receive 4 XML messages

Example for Corporate action

Account 1 / ISIN1

Account 2 / ISIN1

Account 1 / ISIN2

Account 2 / ISIN2

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SWIFT MESSAGE CHARACTERISTICS

Separate messages are produced for each securities account of a client

and for each security.

Unique CA reference by securities is used.

Cyrillic text is transliterated.

Two securities are involved in

General meeting:

ISIN1

ISIN2


Account 1

Account 2

Account 3

The client will receive 6 SWIFT

messages

Example

Account 1 / ISIN1

Account 2 / ISIN1

Account 3 / ISIN1

Account 1 / ISIN2

Account 2 / ISIN2

Account 3 / ISIN2

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SUBSCRIPTION TO NOTIFICATIONS

The report’s

code The report’s name format LUCH

channel SWIFT channel

SWIFT message type

CA012 Meeting notification XML + + МТ564,МТ568

CA013 Reminder of Meeting XML + + МТ564

CA082 Meeting results dissemination XML + + МТ564,МТ568

CA021 Meeting cancellation XML + + МТ564,МТ568

CA311 Corporate action notification XML + + МТ564,МТ568

CA312 Reminder of corporate action XML + + МТ564

CA391 Corporate action cancellation advice XML + + МТ564,МТ568

CS012 Meeting notification HTML + - -

CS013 Reminder of Meeting HTML + - -

CS082 Meeting results dissemination HTML + - -

CS021 Meeting cancellation HTML + - -

CS311 Corporate action notification HTML + - -

CS312 Reminder of corporate action HTML + - -

CS391 Corporate action cancellation advice HTML + - -

NSD introduces the functionality (transaction 97) that allows Clients to manage CA notifications in general or per each securities account. Clients is able to select reports in a required format (HTML or XML) and to switch on / off SWIFT notifications.

Transaction 97

RUSSIAN SECURITIES Meetings

Redemptions

Mandatory events

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HTML

Meeting Notification

Meeting Result Dissemination

Meeting Cancellation

XML SWIFT

EXAMPLES OF NOTIFICATIONS FOR RUSSIAN SECURITIES (I)

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Corporate Action Notification

Corporate Action Cancellation Advice

The XSD scheme is available at https://www.nsd.ru/en/documents/workflow/ in the Section “Specifications of electronic documents used by NSD during processing of corporate actions”.

https://www.nsd.ru/common/img/uploaded/files/services/inf_ca/RUS.HTML.1.pdf




https://www.nsd.ru/common/img/uploaded/files/services/inf_ca/RUS.SWIFT.1.pdf






https://www.nsd.ru/common/img/uploaded/files/services/inf_ca/XML.1.xml





https://www.nsd.ru/en/documents/workflow/


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HTML XML SWIFT

EXAMPLES OF NOTIFICATIONS FOR RUSSIAN SECURITIES (II)




With securities write off [WRTH]

With securities debiting and crediting [MRGR,SPLR,SPLF,DECR,INCR,CONV,EXOF,PARI]

With securities crediting [SOFF,BONU]












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HTML XML SWIFT

EXAMPLES OF NOTIFICATIONS FOR RUSSIAN SECURITIES (III)



[BIDS,TEND,PRIO]

[OTHR,CAPG]









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MT564 Notification

(:23G:NEWM)


MEETINGS. DISSEMINATION SCHEME

Meeting date

Record date

Notification

Documents for the

meeting are received

If documents for the meeting are received before the record date, the message is sent the day after the record date.

“NEWM” function is used for the first message for each corporate action and “REPL” function is used for all next messages in the chain.

The ISO20022 messages include the block “Amendment” for all messages in chain except the first one.

The ISO15022 messages may include the additional МТ568 message if the volume of information in the basic МТ564 message exceeds the maximum allowed volume.

Documents for the

meeting are received

Amended documents for the meeting are received

MT564 Notification (:23G:REPL)


(amendment)

The meeting is canceled by

the issuer

MT564 Notification

(:23G:WITH)


Meeting results are received


Meeting Result Dissemination

ISO15022

ISO20022

МТ568 МТ568 МТ568

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MT564 Notification

(:23G:NEWM)


REDEMPTION. DISSEMINATION SCHEME

Payment date

Record date

Notification

Dissemination period. Messages are sent to all clients with new securities balances within the indicated period.

Messages are sent to all clients with securities balances during the dissemination period. “NEWM” function is used for the first message for each corporate action and “REPL” function is

used for all further messages in the chain. The ISO20022 messages include the block “Amendment” for all messages in chain except the first

one.

21 calendar days before

payment date

CA is canceled by the issuer

MT564 Notification

(:23G:WITH)

Corporate Action Cancellation

Advice

ISO15022

ISO20022

CA’s details are amended



(amendment)

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MT564 Notification

(:23G:NEWM)


Date of corporate action processing at NSD

Record date

Notification

Registration of changes in the

URSLE

ISO15022

ISO20022

MANDATORY EVENTS [WRTH,MRGR,SOFF].

DISSEMINATION SCHEME

A registrar notifies NSD

For securities kept in the CSD nominee account the date of the corporate action at Registrar corresponds to the date of the processing at NSD.

For securities kept in the NSD nominee account with Registrars, clients may be informed after the date of the processing at Registrar.

A registrar notifies NSD

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MT564 Notification

(:23G:NEWM)


Date of corporate action processing at NSD

Record date

Notification

ISO15022

ISO20022

Date of the operation in the

register

A message about an upcoming corporate action is sent in the evening of the day when information was received from the registrar. Information may be received prior to or after the record date.

For securities held in the CSD nominee account the date of the corporate action in the register corresponds to the date of the processing at NSD.

For securities held in the nominee account with Registrar, clients may be informed after the date of the processing at Registrar.

The registrar informs NSD about

the operation

A registrar informs NSD about the

operation

MANDATORY EVENTS [OTHERS].

DISSEMINATION SCHEME

FOREIGN SECURITIES Meetings

Redemptions

Mandatory events

Events with options

Reminders

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EXAMPLES OF NOTIFICATION FOR FOREIGN SECURITIES (I)

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XML SWIFT

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Corporate Action Cancellation Advice


https://www.nsd.ru/common/img/uploaded/files/services/inf_ca/F.HTML.1.pdf



https://www.nsd.ru/common/img/uploaded/files/services/inf_ca/F.SWIFT.4.pdf






https://www.nsd.ru/common/img/uploaded/files/services/inf_ca/F.XML.1.xml



Reminders

Events with options

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HTML XML SWIFT


[TEND,BIDS,PRIO,MRGR,EXOF,CONV,BONU,OTHR, DSCL,CONS,DVCA,DVSE,DVOP,DRIP,LIQU,CAPD]

Mandatory events

[SPLR,SPLF,WRTH,SOFF,PARI,INCR,DECR,CAPG]

Corporate Action Notification Meeting Notification

EXAMPLES OF NOTIFICATION FOR FOREIGN SECURITIES (II)



Other events

[CERT,RHDI,BPUT,CHAN]







https://www.nsd.ru/common/img/uploaded/files/services/inf_ca/F.HTML.7.1.pdf





MT564 Notification

(:23G:NEWM)


MEETINGS. DISSEMINATION SCHEME

Meeting date

Record date (may not exist)

Notification

Dissemination period. Messages are sent to all clients with new securities balances within the indicated period.

Message is sent out to clients with eligible balance on RD or settled balances

Information is received from

account servicer (ICSD)

Information about changes in the

meeting is received from

account servicer (ICSD)*



(amendment)

Information about the meeting’s cancellation is received from


MT564 Notification

(:23G:WITH) (:23G:CANC)


Information about the results of the meeting

is received from account servicer

(ICSD)



(amendment)

ISO15022

ISO20022

МТ568 МТ568 МТ568

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МТ568

Information about changes in the

meeting is received from

account servicer (ICSD)*



(amendment)

МТ568

* - amendments to meeting could be sent before and after record date (if exists) as well as after meeting date

MANDATORY EVENTS. DISSEMINATION SCHEME

Information is received from


Information about changes in the CA is received from account servicer

(ICSD)*

Information about the CA’s cancellation f is

received from account servicer

(ICSD)

ISO15022

ISO20022

МТ568 МТ568

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МТ568

MT564 Notification

(:23G:NEWM)




(amendment)

MT564 Notification

(:23G:WITH) (:23G:CANC)

Corporate Action Cancellation

Advice


(ICSD)*

МТ568



(amendment)

Payment date


Notification

Messages are sent to all clients with new securities balances within dissemination period.

Message is sent out to clients with eligible balance on RD or settled balances

* - amendments to corporate action events could be sent before and after record date (if exists) as well as after payment date

EVENTS WITH OPTIONS. REMINDERS

Payment date


Notification

Message is sent out to clients with eligible balance on RD (if exists) or with settled balances. Subscription required.

Information about CA is

received from account

servicer (ICSD)


(ICSD)

ISO15022

ISO20022

МТ568 МТ568

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MT564 Notification

(:23G:NEWM)

CorporateAction Notification

Period to provide CA instructions

Start of instruction

period

2 days

Response deadline (RDDT)

CorporateAction Notification

(amendment)


Early response deadline (EARD)

MT564 Notification

(:23G:RMDR)

CorporateAction Notification (reminder)

MT564 Notification

(:23G:RMDR)

CorporateAction Notification (reminder)

2 days

24:00 MSK

24:00 MSK