APAC RMPG ASX implementation of ISO for notification of corporate actions

Transcription

1 APAC RMPG ASX implementation of ISO for notification of corporate actions 8 April 2015 Karen Webb Manager, Settlement Services

2 Agenda Introduction to ASX Implementation of ISO for corporate action notifications Challenges Objectives Solution Benefits Q&A

3 Introduction to ASX

4 Role of ASX in the Australian market 4

5 Role of ASX in the Australian market 5

6 Implementation of ISO for corporate action notifications

7 Challenges - standardisation at ASX Current mix of proprietary and some standardised messaging Cash Market Wholesale Market CHESS proprietary Austraclear CA notification proprietary CA notification Customers (e.g. custodians) mixed Customers Early focus on corporate action notifications, at request of customers Use of global standard protocols is a key objective for our Technology Renewal Program Trade (cash market and futures) Post Trade (clearing and settlement) 7

8 Challenges in corporate action processing Complexity of events Numerous sources of information and non-standardised structure Multiple parties in announcement chain Operational risk Importance of corporate action information Costs to stakeholders and ASX Therefore a need for: More timely, accurate, consistent (standardised) corporate action data Reduction of systemic risks and costs Achieve benefits to all stakeholders, including issuers and investors Be world class, globally connected 8

9 Challenges in traditional notification process 9

10 Project challenges Are all stakeholders aware of the end to end notification process? How to get 100% coverage so efficiencies are enjoyed equally? How to approach to consultation? How to achieve Issuers buy-in to new process? Need to review ASX Listings Compliance and Operations processes? How could we leverage our position as the portal for Issuer market announcements to achieve the best outcome? 10

11 Project objectives deliver a more streamlined and standardised process for the announcement, data capture and delivery of corporate action information 11

12 Project challenges The approach to consultation and implementation Review the notification cycle Issuer survey on the announcement process and content Establishment of working group for detailed consultation Propose a mandatory process Minimise impact on issuers re new process Market Regulator engagement Phased approach high volume / largely mandatory events first Reliance on improved technology / database Messaging gap analysis Online form design and questions Decision to go to ISO

13 Why ISO for corporate actions? International comparison adoption progress Position as market infrastructure to influence change Xml format More data, extension model Backwards compatibility Delivery channel options SWIFT solutions to smooth the path MyStandards IPLA 13

14 The process solution The existing notification process capture & dissemination of data 14

15 The process solution New online form process and future view potential direct upload 15

16 The technical solution Application Internal / External purpose SWIFT MyStandards External Publication of usage guidelines for ISO format CA notification Announcement web portal (ASX Online) Market Announcement Platform External Internal New online form functionality, including workflow for issuers to announce corporate actions Internal announcement review and release platform - enhanced to identify structured vs. unstructured announcements; exception management Central database Internal Source of static data, accept and send xml format files, create CA record, approval workflow. Also used for manual update to information. Data Warehouse Internal Source of static, historical data. Services existing batch style market information products. Enterprise Service Bus Internal Receives proprietary xml CA record from central database, holds ISO templates and performs re-formatting, xml send to IPLA IPLA (SWIFT) Internal Integration platform, custom module SWIFTNet service External test and production service for ISO corporate action notifications to customers FTP service (ASXNet) External Alternate delivery of same xml file to customers Customer portal External Delivery of other market information products 16

17 The benefits - improved notification process 17

18 The benefits for all stakeholders Commit to ISO Early adopters benefit Improved efficiency, lower risk ( costs) Extended data set STP opportunities ASX as key source Information providers, custodians ASX position information source Range of products near real time, batch, detailed data Responsive to customers Improved efficiency & lower risk for operations Improved issuer compliance, listing service Investors Information Cycle ASX Receive timely, transparent, consistent information Institutional Investors lower processing cost Issuer Improved investor relations / take-up Improved mid to small cap market coverage Improved compliance Improved announcement process Reduction in post announcement queries

19 The benefits ASX product expansion Product Fixed field length csv ISO CA xml 8.30am 8.30am 11.30am 2.30pm 4.30pm 8.30pm 3.00pm 8.30pm EOD Channel ASX Online SWIFTNet ASXNet Existing New Building our service to customers: expanding on the content, format and delivery times for ReferencePoint Corporate Action products with new ISO20022 format Recognise that not all subscribers require xml, SWIFT channel, so will offer expanded product suite, rather than replacement for now 19

20 The benefits - delivering market improvements The stakeholder view Benefits Issuer: ASX: the online forms are helpful and user friendly the adoption of new technologies and online processes such as this aligns with the company s objective of being innovative and efficient in the digital environment. The calculation of dates is time-saving and their validation is re-assuring 90% reduction in time to capture corporate action data where online form is used Custodian: Positive change requires the engagement of all key players including issuers, registries, custodians and of course, the ASX.. The initiative will allow for greater levels of automation and control of our corporate event announcement process Standardisation and automation of the information flow cuts down on the potential for transcription errors, and the fact that announcements are accessed from the source of truth contributes to satisfying the need for accuracy and completeness.

21 Q&A

22 22