asx implementation of iso 20022 for notification of … working...introduction to asx implementation...
TRANSCRIPT
APAC RMPG ASX implementation of ISO 20022 for notification of corporate actions
Karen Webb
Manager, Settlement Services
8 April 2015
Agenda
Introduction to ASX
Implementation of ISO 20022 for corporate action notifications
• Challenges
• Objectives
• Solution
• Benefits
Q&A
Introduction to ASX
Role of ASX in the Australian market
4
Role of ASX in the Australian market
5
Implementation of ISO 20022
for corporate action
notifications
Challenges - standardisation at ASX
• Current mix of proprietary and some standardised messaging
7
Cash Market Wholesale Market
CHESS proprietary Austraclear 15022
CA notification proprietary CA notification 15022
Customers
(e.g. custodians)
15022
mixed
Customers 15022
• 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)
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
Challenges in traditional notification process
9
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
Project objectives
11
deliver a more streamlined and standardised process for the announcement, data capture and delivery of corporate action information
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 20022
12
Why ISO 20022 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
The process solution
14
The existing notification process – capture & dissemination of data
The process solution
15
New online form process and future view – potential direct upload
The technical solution
16
Application Internal /
External
purpose
SWIFT MyStandards External Publication of usage guidelines for ISO 20022 format CA notification
Announcement web
portal (ASX Online)
External New online form functionality, including workflow for issuers to
announce corporate actions
Market Announcement
Platform
Internal 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
20022 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 20022 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
The benefits - improved notification process
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The benefits – for all stakeholders
Investors
Issuer
ASX
Information providers, custodians
• Commit to ISO
20022
• Early adopters
benefit
• Improved efficiency,
lower risk ( costs)
• Extended data set
• STP opportunities
• ASX as key source
• Receive timely, transparent,
consistent information
• Institutional Investors – lower
processing cost
• 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
• Improved investor
relations / take-up
• Improved mid to small
cap market coverage
• Improved compliance
• Improved announcement
process
• Reduction in post
announcement queries
Information
Cycle
The benefits – ASX product expansion
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• 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
8.30am 8.30pm
Channel Product
Fixed field length 𝌒 𝌒 𝌒 𝌒
csv
ASX
Online 𝌒 𝌒 𝌒 𝌒
ISO 20022
CA xml
SWIFTNet
ASXNet
8.30am 3.00pm
11.30am 2.30pm 4.30pm 8.30pm
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Existing
New
The benefits - delivering market improvements The stakeholder view
Benefits
Issuer: “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”
ASX: 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.”
Q&A
22