Corporation actions reform underway in Russia
01 October 2014 Moscow
Image: Shutterstock
Russian securities depository the National Settlement Depository (NSD) is leading a programme aimed at reforming corporate actions in Russia.
With the support of the regulator, issuers, registrars and clients, NSD is planning to implement new technologies and international standards for electronic document interchange.
The reform “provides for complex changes related to the legal base and technologies of the corporate actions processing”, according to NSD.
“Market participants will be able to mitigate risks and reduce costs associated with corporate actions by eliminating the use of traditional paper documents, using electronic technologies and involving record-keeping institutions.”
A company will be able to inform clients about upcoming meetings of shareholders using ISO 20022 and ISO 15022 messages by the end of 2014, according to NSD.
May 2015 will see the completion of the automation of an e-proxy-voting procedure, the conditions for which were put in place in August 2014, after the adoption of regulations that allowed depositories to form electronic voting documents for their clients without the power of attorney.
NSD has already introduced e-proxy-voting and shareholder meeting notifications using messages in the formats that it has developed.
E-proxy-voting technology is being modernised in accordance with international interaction standards. International formats for AGM notifications will be introduced, as will new services for meeting participation.
Eddie Astanin, chairman of NSD’s executive board, called corporate actions reform “one of the most important transformations in the Russian financial market”.
“The opportunity to execute rights on Russian securities in a centralised way and in an electronic form will create a complex effect in the domestic market.”
He added: “Infrastructures will get a chance to reduce their costs for paper document interchange, and local players will be able to execute their rights in a modern and convenient way. Availability of the newest corporate actions formats approved at the international level will encourage foreign investors to make decisions in favour of the Russian market.”
“This is an enormous responsibility, and we will exert every effort to implement the reform in the most consistent and efficient way.”
With the support of the regulator, issuers, registrars and clients, NSD is planning to implement new technologies and international standards for electronic document interchange.
The reform “provides for complex changes related to the legal base and technologies of the corporate actions processing”, according to NSD.
“Market participants will be able to mitigate risks and reduce costs associated with corporate actions by eliminating the use of traditional paper documents, using electronic technologies and involving record-keeping institutions.”
A company will be able to inform clients about upcoming meetings of shareholders using ISO 20022 and ISO 15022 messages by the end of 2014, according to NSD.
May 2015 will see the completion of the automation of an e-proxy-voting procedure, the conditions for which were put in place in August 2014, after the adoption of regulations that allowed depositories to form electronic voting documents for their clients without the power of attorney.
NSD has already introduced e-proxy-voting and shareholder meeting notifications using messages in the formats that it has developed.
E-proxy-voting technology is being modernised in accordance with international interaction standards. International formats for AGM notifications will be introduced, as will new services for meeting participation.
Eddie Astanin, chairman of NSD’s executive board, called corporate actions reform “one of the most important transformations in the Russian financial market”.
“The opportunity to execute rights on Russian securities in a centralised way and in an electronic form will create a complex effect in the domestic market.”
He added: “Infrastructures will get a chance to reduce their costs for paper document interchange, and local players will be able to execute their rights in a modern and convenient way. Availability of the newest corporate actions formats approved at the international level will encourage foreign investors to make decisions in favour of the Russian market.”
“This is an enormous responsibility, and we will exert every effort to implement the reform in the most consistent and efficient way.”
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