NSD takes step forward in corporate actions reform
01 February 2016 Moscow
Image: Shutterstock
The National Settlement Depository (NSD), the Russian central securities depository (CSD), has successfully completed a test of information and files exchange for a shareholder-requested purchase, or buy-out, of company shares using electronic data exchange and electric communications channels.
The test was conducted along with other depositories and registrars, and with registrar software developer Eldis-Soft. It comes ahead of implementation of NSD’s new corporate actions processing system, which will require shareholders to send instructions to registrars through their depositories.
As part of the corporate actions reform, which will come in to effect in July, NSD will continue testing corporate actions processing. In February, market participants will be able to test a feature supporting mandatory and voluntary offers for share repurchase, in line with the reforms schedule.
Also in accordance with changes, shareholders with securities in the depositories system will be able to participate in most corporate actions through their depositories.
Current tests are designed to help market participants prevent errors in corporate actions processing and to guarantee the reliability of the new technology to the securities holders.
After a positive assessment of the first test results, NSD confirmed that it intends to continue joint work on improving corporate actions processing interactions. A more thorough conclusion will be published on the NSD’s reforms website, including assessment of interaction approaches, formats, and operational reliability of communication links.
The will also be a repeated test to allow any registrars and deponents of NSD that did not take part to assess the system.
The test was conducted along with other depositories and registrars, and with registrar software developer Eldis-Soft. It comes ahead of implementation of NSD’s new corporate actions processing system, which will require shareholders to send instructions to registrars through their depositories.
As part of the corporate actions reform, which will come in to effect in July, NSD will continue testing corporate actions processing. In February, market participants will be able to test a feature supporting mandatory and voluntary offers for share repurchase, in line with the reforms schedule.
Also in accordance with changes, shareholders with securities in the depositories system will be able to participate in most corporate actions through their depositories.
Current tests are designed to help market participants prevent errors in corporate actions processing and to guarantee the reliability of the new technology to the securities holders.
After a positive assessment of the first test results, NSD confirmed that it intends to continue joint work on improving corporate actions processing interactions. A more thorough conclusion will be published on the NSD’s reforms website, including assessment of interaction approaches, formats, and operational reliability of communication links.
The will also be a repeated test to allow any registrars and deponents of NSD that did not take part to assess the system.
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