Corporate actions STP
Each year ASX listed entities make more than 130,000 announcements to the market. The announcements include key information about the listed entities and their securities, corporate actions and events. Corporate actions include events such as dividends, entitlement offers, reorganisations of capital and capital returns.
In September 2014 ASX implemented a new process for the announcement of certain corporate actions (via new ASX Online forms) and the automated capture of data contained in each announcement to facilitate straight-through processing (STP) for ASX and its customers.
The use of the new ASX Online forms by listed entities for announcing corporate actions specific to dividends/distributions, interest payments/interest rate changes, securities splits/consolidations and cash capital returns became mandatory on 29 June 2015. The substantive information requirements for these events are set out in the ASX Listing Rule Appendices 3A.1 to 3A.4 and are accessible from the “Create Online Forms” menu item in ASX Online for a listed entity.
The initial implementation has improved the speed and accuracy of the targeted corporate action market announcements made by listed entities (including facilitating compliance with the ASX Listing Rules) and introduced enhanced data sets compliant with international standards - ISO 20022. ASX has also established new product formats and delivery mechanisms for corporate action information.
Corporate Actions STP Phase 2
ASX has commenced work on the implementation of the second phase of the project - scheduled for final release by mid 2020.
The second phase will support STP for the remaining corporate action events supported by ASX including: buy backs; conversion and expiry of convertible securities; entitlement offers; in-specie distributions; name and ticker code changes; schemes of arrangement; security purchase plans; takeover bids and security transfers in connection with a deed of company arrangement. ASX will also introduce ASX Online forms for the announcement of new issues of securities, including requests seeking quotation of those securities (as covered by the current Appendix 3B to the ASX Listing Rules).
In addition, a number of enhancements identified by ASX and key stakeholders will be applied to the existing ASX Online forms.
Benefits of online forms and STP
Investors receive issuer data more quickly, enabling more informed and timely investment decisions and listed entities benefit from improved workflows and improved compliance with the ASX Listing Rules through validation.
Intermediaries benefit from international standard data sets allowing easier implementation and standardisation of their own systems and services to their customers.
For an overview of the process, refer to the Corporate Action Listed Entity Data diagram.
More information on the new product service and formats is provided below for market information subscribers.
Implementation material for Market Information Subscribers
- Fact Sheet - ASX Market Information ReferencePoint ISO 20022 Intra-Day Corporate Actions
- SWIFT MyStandards - Access and Login information for ASX Community
- ReferencePoint ISO 20022 Intra-Day Corporate Actions User Manual v1.2
- ReferencePoint ISO 20022 Frequently Asked Questions v1.1
- ReferencePoint ISO 20022 Intra-Day Corporate Actions Swift Readiness Guide v1.4
Recent articles and publications
ASX talks about corporate action automation in the ISSA Newsletter May 2017
ASX talks about developing a straight through process for corporate actions in Australia in the Journal of Securities Operations & Custody July 2014
ASX will continue to engage industry stakeholders on this initiative. Stakeholders will have the opportunity to comment on key deliverables developed by ASX.
To find out more about the initiative, contact us.