Corporate Action and Listed Entity Data Straight Through Processing

Background:

ASX is the source for a large amount of information relating to listed entities and security data, including corporate actions information. Examples of corporate actions include dividends, entitlement issues, capital returns and capital reconstructions. Each year ASX-listed entities make more than 110,000 announcements via the company announcements platform to the market. Currently, the data is manually transcribed from these unstructured company announcements, processed in ASX internal systems and disseminated in ASX Market Information reference products. Corporate actions information is highly sought after for assessing the activities and performance of a company.

Objectives of the Initiative:

The initiative aims to significantly improve the current process by
a) removing the risks associated with accuracy, timing and interpretation
b) improving compliance with listing rules
c) developing new data sets compliant with international standards and
d) providing new product formats and delivery mechanisms.

Why is this initiative important:

The initiative is important because the data is used worldwide by many stakeholders, for example investors, share registries, custodians, broker back offices and information providers. The data is used to identify the impact on investment portfolios and to make investment decisions. It is vital that this data is timely, accurate and informative. Other international markets are also focussed on improving corporate actions information and making a significant change to the industry on an international scale.

Benefits of the initiative:

The key benefit is that data will be released from the listed entity to the end investor more quickly to enable more informed and timely investment decisions.

The benefits for listed entities include enhanced workflow, improved compliance with the listing rules through validation, and more timely delivery of data to their audience. There will also be the ability to integrate their systems to ASX’s systems via straight through processing (STP).

The benefit for intermediaries is the use of international standard data sets allowing easier implementation and standardisation of systems. For reference data recipients such as custodians, information vendors, share registries and ultimately the end investor, benefits include:

  • improved accuracy and efficiency in data
  • improved timeliness in delivery
  • a richer data set
  • compliance with international standards and
  • flexible product formats and delivery mechanisms.

For an overview of the proposed process please refer to the Corporate Action Listed Entity Data Diagram.

Industry engagement:

ASX is seeking industry support and involvement to ensure the benefits are realised for all users.

 ASX is currently engaging in industry-wide consultation and all stakeholders will have the opportunity to comment on key deliverables developed by ASX.

 ASX has chosen to adopt SWIFT MyStandards, a collaborative web-based platform for managing standards.   This will enable collaboration with key customers on the development of Australian market practices for corporate actions, particularly standardised file formats, and to facilitate implementation and ongoing maintenance.  Further information is available in the SWIFT press release, with key representatives from ASX and SWIFT attending a signing ceremony at Sibos 2012.