Euronext Securities has entered into an agreement with Clearstream to provide asset services to Clearstream Banking AG as Investor CSD for the Danish market. This agreement, built on long-term cooperation between the two infrastructures, will facilitate access to Danish capital markets.

Direct participation and CSD collaboration to benefit capital markets

The new agreement reflects Euronext Securities’ ambition to expand its added-value services and the demand of shortening the value chain in the post-trade industry. 



“Across Europe, we’re seeing a growing trend that the value chain between issuers and investors can get shorter, notably with more direct connections between CSDs.” said Pierre Davoust, Head of CSDs at Euronext. “There are advantages to accessing the market directly, such as more transparency, lower operational risk, and some of our customers prefer this approach. We’re responding to this trend by expanding our existing portfolio of asset services and, in time, we can see this becoming a pan-Nordic offering for our customers that choose to go this route,” he comments. “This partnership further illustrates the strategic priority to pan-Europeanise and scale up our CSDs announced last November, as part of the Euronext strategic plan Growth for Impact 2024”.

Building on a successful partnership 

Pierre Davoust points to Euronext Securities’ long-standing and successful relationship with Clearstream as one of the key factors enabling this new agreement. “Euronext Securities and Clearstream have had a successful partnership for the past 13 years in Denmark. We’re pleased that we can now build on this relationship through this agreement with Clearstream Banking AG.”

Part of a larger strategic objective 

For Clearstream, this new agreement is part of a larger strategic initiative to create a more efficient operational set-up through direct market access, as Sam Riley, Head of Investor Services & Financing at Clearstream, elaborates: “Our Investor-CSD model offers access to T2S-in and -out markets, as well as to the international markets via a central access point. It is designed to improve our customers’ operational efficiency and to reduce operational and counterparty risk. Connecting directly to the comprehensive asset services of various CSDs allows us to offer our customers the set-up and securities service quality they seek – as we are doing now with Euronext Securities. We look to further broaden this engagement, both in Europe and beyond. Ultimately, this is one supporting building block to increase the efficiency of the European capital markets.”



For more information about Clearstream, go to www.clearstream.com 

Euronext Securities Copenhagen has worked with Obton and Koncenton to develop an end-to-end solution for virtual annual general meetings (VGMs). Each of the two investment firms now has a solution that is tailored to their unique needs and empowers them to run their own VGMs as a part of a self-service solution.

Two fast-growing alternative investment funds

Owned by the Obton Group, both Obton and Koncenton have experienced an exceptional growth rate in recent years. 



Obton operates at the forefront of the transition towards more sustainable energy sources, helping new and experienced professional and semi-professional investors diversify their holdings by investing in solar plants around the world. The investment firm is among the largest investors in solar energy in Europe and has more than 4,000 investors and +20 billions under management 



For the past three years, Koncenton has been the largest property investment firm in Denmark, and invested DKK 5 billion in properties during 2021 alone. This year, the company plans to add over 60 properties to its rapidly expanding portfolio and grow by 1,000 investors. Prior to the COVID-19 pandemic, both companies held in-person annual general meetings (AGMs). Given the large number of investors involved in both companies, the pandemic-related restrictions posed unique challenges.

Pandemic prompts search for a virtual, self-service solution

“Our AGM process was very physical before the pandemic,” relates Mads Møller Wejdemann, Director, Investor Services at Obton. “We scanned barcodes to verify the attendees, passed out paper ballots and collected votes manually. So, when it was no longer possible to hold a physical meeting, we needed to find a platform that would enable us to interact with our investors.” Because Obton and Koncenton have to hold an AGM for each investment fund, they needed to find a solution with a robust self-service element. “It would be a very expensive solution if we had to have a vendor provide support to hold all of our AGMs when we have so many, so one of our main requirements was the ability to run the VGMs ourselves,” he says. 

Developing a tailored VGM solution

Obton and Koncenton worked with Euronext Securities Copenhagen to develop end-to-end VGM solutions that are tailored to each investment firm’s unique needs. Koncenton developed a two-factor model, which enables the company to adjust the VGM format based on the number of attendees. “For meetings with a small investor turnout, we use the Euronext set-up for the registration process, and run the actual meeting on the Microsoft Teams platform,” explains Kenneth Klitgaard Sørensen, Company Manager at Koncenton. “But when we hold our large meetings, where we need to manage participants and voting, we need to have a digital flow covering the entire meeting.” Koncenton is also working with Euronext Securities Copenhagen to minimise the delay between the live event and the feed that investors watch. One of Obton’s requirements was being able to integrate the VGM solution with their order books, so the two systems could communicate with each other. They were able to find a solution to this requirement as well. Both investment firms have used Company Webcast as an integrated part of their VGM solution. 

Virtual format has its advantages

While the shift to virtual AGMs was made out of necessity, both Obton, Koncenton and their investors have discovered the advantages of meeting virtually. “One of our goals as an investment firm is to keep our investors as informed as possible and give them insight into their investments and how they’re performing,” says Kenneth Klitgaard. “The virtual format gives us more options so we can have as many attendees as possible. Some investors who might have been hesitant to spend an entire day in transit just to attend a 1.5-hour meeting, can now attend virtually. Our hope is that this will increase the overall number of attendees. And, generally speaking, investors appreciate not having to attend physically.” 



The virtual format also eases the administrative burden, as Mads Wejdemann points out. “When we had paper-based voting, we had to manually collect the votes and count them, which took a great deal of time. Now everything is handled digitally, and that makes the process a lot easier to manage.” 



Going forward, both investment firms will use a hybrid approach, offering investors the opportunity to attend virtually or physically. “Some people like to know who the other investors are, and by offering a hybrid solution, we can meet everyone’s needs, whether they prefer the physical or virtual format,” Mads Wejdemann says. 

Facts

VGM is a tool for companies that wish to foster active ownership and see a higher participation and interaction than in a physical meeting. 

VGM includes: 

• Flexible set-up for issuers
• Fully or partially virtual meeting
• Static, dynamic or live video stream & audio
• Ability to add and modify agenda points
• Secure back-up of data and functionality

Read more about how we can support your Annual General Meeting and your VGM.

Company Webcast

Company Webcast offers cutting-edge webcasting services to enhance the reach of your investor relations events and internal communications while increasing the interactivity and engagement of your stakeholders. Ensure maximum impact for your results presentations, virtual roadshows, Capital Markets Days, AGMs and more.

Read more about the services from Company Webcast.

Euronext Securities Copenhagen today announced that J.P. Morgan has signed an agreement to become a direct participant in the Danish market.

The agreement reflects a growing trend of shortening the value chain between issuers and investors. Across Europe, it is becoming more relevant for international players in the custody business to directly access local markets through direct connectivity with local CSDs. There are obvious advantages of this for both custodians and the clients they serve, ranging from reduced costs, a shortened custody chain, enhanced transparency and operational efficiencies. Euronext Securities is responding to this trend by converging the infrastructure and expanding services.

Anthony Attia, Global Head of Primary Markets and Post Trade at Euronext, commented: “We have had a close relationship with J.P. Morgan for a number of years, and we are proud to bring this collaboration to the next level and support them in their role as an Account Controller on the Danish market. Shortening of the custody value chain is a key assumption of Euronext’s “Growth for Impact 2024” strategic plan. Today’s announcement shows this assumption is right. Structural changes like this one do not only produce tangible benefits for international clients, they fundamentally better connect European economies to global capital markets. Concretely international investors now have a more direct and efficient access to 1.5 trillion euros of assets issued in the Danish capital market.

The most efficient way of servicing a growing market 

For J.P. Morgan, direct interface to the Danish market through local CSD connectivity will help drive its significant asset servicing presence in the Danish and Nordic markets.

Hannah Elson, Head of Global Custody at J.P. Morgan commented: ‘We are excited to partner with Euronext Securities in providing direct market access in Denmark to our global clients. A shorter custody chain brings significant efficiencies and enhances the overall client experience. This move further strengthens our franchise and growth plans across the Nordic Region and demonstrates our commitment to delivering efficient market access to global investors’.

Download the Press Release here

After almost two years of holding hybrid or virtual annual general meetings (AGMs) during the COVID-19 pandemic, 2022 was finally an opportunity for companies to return to normal. Would they, or would the benefits of holding virtual AGMs prompt a change in practice? In this article, we take a look back at the trends that governed the 2022 AGM season at Euronext Securities Copenhagen and look ahead at what’s in store for 2023.

An even split between physical and virtual in 2022

“If we look at the numbers, we can see that about half of the annual general meetings were either completely virtual or a hybrid meeting,” relates Gitte Krag Møller, Senior Client Manager at Euronext Securities Copenhagen. The largest attendance for a physical annual general meeting was over 1,100 participants; however, according to Gitte Krag Møller, this was the exception rather than the rule. “Generally speaking, the physical general meetings had a lower attendance than they had before the pandemic.”

Global companies see advantages in the virtual format

Among the companies that decided to continue the virtual format are larger companies with a wide range of international investors. “For global companies, virtual general meetings allow them to attract even more investors,” Gitte Krag Møller explains. “Attendees appreciate the flexibility virtual meetings offer, as they can attend from the office, from other countries and across time zones.”

Physical AGMs offer intangible benefits

However, for companies with strong national roots, the physical format offers an opportunity to connect with the local investor base, as Gitte Krag Møller points out. “For some Danish companies, the annual general meeting is an opportunity to hold a community event. They invite thousands of attendees and shareholders travel from all over the country to attend. These events create an enormous amount of goodwill in the community and strengthen the companies’ brand. It’s hard to replicate that experience in a virtual or hybrid format.” 

Virtual and hybrid formats also require a different approach to event planning and management. “To run a virtual meeting, you need to have the right technology in place and the personnel necessary to monitor and manage the chat function. For hybrid meetings, you also need to balance the interaction between in-person and virtual attendees and make sure everyone is heard,” says Gitte Krag Møller. Thus, virtual AGMs can be just as resource-intensive and time-consuming in terms of preparation as physical AGMs. “Going forward, companies will need to consider which format best suits their internal processes and structure.”  

Looking ahead to the 2023 AGM season

Going into next season, Gitte Krag Møller expects the mix of hybrid and physical AGMs to continue. “We have customers who have really embraced the virtual AGM and can see the potential that format has to help them reach even more investors. And then we have customers on the other end of the spectrum, who see the physical AGMs as an important part of their brand and culture. Fortunately, we have an entire suite of AGM tools and solutions that can accommodate physical, virtual and hybrid formats, and create a set-up that caters to each company’s unique needs and investor base,” she concludes. 

Fact box: Euronext Securities Copenhagen’s 2022 AGM season in numbers

• AGMs held: 200+, of which 100+ were either virtual or hybrid
• Highest attendance at a hybrid AGM: 550 
• Highest attendance at a physical AGM: 1,100+
• Proxy instructions processed: 15,000

For the past ten years, Euronext Securities Copenhagen has supported Tryg A/S in offering secure election and voting services to its employees. Thus, when Tryg A/S needed a partner to help it carry out separate but simultaneous elections in Norway and Denmark, it reached out to Euronext Securities Copenhagen for assistance.

According to Anders Rolskov-Eriksen, Legal Counsel at Tryg A/S, the company’s long-standing relationship with Euronext Securities Copenhagen made it the natural choice as the election services provider. “We’ve used Euronext Securities Copenhagen for the past ten years and we have enjoyed a very good relationship, so it made sense that we would use them again,” he comments. “The fact that their voting portal is based on technology that is quality-tested for handling general meetings was another important factor in our decision. That assures us that we will get results that everyone can trust are accurate.”

Two locations, two approaches

Flexibility was another important requirement with this year’s elections, since Tryg A/S needed a solution that could support two independent, but simultaneous elections. “We had to conduct two separate elections in Denmark and Norway at the same time, and each election had to follow its own set of regulations,” Anders Rolskov-Eriksen explains. Euronext Securities Copenhagen adapted the voting portal so it could handle the two elections, each with their own voting nuances and languages. 



To address this challenge, Euronext Securities Copenhagen could draw on its previous experience with Tryg A/S, as Julie Willum Kjærsgaard, Client Manager, points out. “We also supported employee elections for Tryg A/S in 2020, where employees with different nationalities were eligible to vote. We set up voting portals in Danish, Norwegian, Swedish and English to support that election, so we had experience with supporting multiple languages, which benefitted us here.” 

Creating a uniform voting experience

A challenge that was unique to these two elections was the fact that many of the eligible employees were on leave. “One of the most important aspects of the voting portal is providing employees with a secure way of accessing the portal and casting their vote,” Julie Willum Kjærsgaard explains. “The employees who were on leave wouldn’t have access to their work email accounts, so we needed to create a voting flow that worked for them. We focused on how we could create an equal experience for all employees, regardless of whether they had access to their work email.”  



Anders Rolskov-Eriksen highlights Euronext Securities Copenhagen’s responsiveness as a key factor in creating a voting process and experience that met the needs of both employee groups. “They gave us the input we needed and made sure we were prepared for the different process phases well in advance. At the same time, they solved any challenges that arose and addressed questions from our employees quickly, so everyone could cast their vote, without being impacted by any external technical issues.”



Proactive communication also helped ensure the highest voting participation possible. “It’s our job to make sure we create a good voting experience, and that everyone can access the voting portal quickly and easily,” says Julie Willum Kjærsgaard. “We also sent Tryg A/S regular updates so they could see how many votes had been cast up until that point in time and determine whether we needed to send out reminders to employees who were eligible to vote.”  

A process that engenders confidence

When it comes to elections and voting results, it’s important that everyone involved can trust the integrity of the process, something that Anders Rolskov-Erikson says is never in doubt when working with Euronext Securities. “On a very practical level, when you can use a system that is thoroughly tested and with personnel who know the platform well, it gives peace of mind. And even more importantly, it gives you a higher degree of confidence in the election itself. The fact that the election is handled, not by a department run by the same management who counts the votes, but by an external, independent partner who everyone recognises as a trustworthy organisation really instils trust in the process.”



To find out more about Euronext Securities’ voting and election services, please see here.

FACT BOX: ABOUT TRYG’S ELECTION

• Ran from 13 to 23 June 2022
• 3,611 eligible employees, of which 231 were on leave
• Euronext Securities sent emails to active employees; Tryg sent emails to employees on leave via e-Boks (secure digital post box)

When Danica Pension needed to conduct a supplemental employee election with over 900 eligible employees and a one-week voting window, they reached out to Euronext Securities Copenhagen to get election and voting services tailored to their needs.

Danica Pension holds employee elections every four years, and they have partnered with Euronext Securities Copenhagen since 2016. Simon Cardel Langeland, Corporate Governance Specialist at Danica Pension, comments that this long-term relationship and familiarity with Danica Pension’s requirements made Euronext Securities the clear choice for this election. “We’ve worked with them on other elections, and it was important for us that we could have an all-in-one package that worked as smoothly as possible. That’s what Euronext Securities gave us.”

Reaching all eligible employees 

One of the unique challenges with this election was identifying all the employees who were eligible to vote. “Because we’re a subsidiary of Danske Bank, there are always employees working in different parts of the organisation or who are outsourced to departments in other subsidiaries,” Simon Cardel Langeland explains. Danica Pension worked with Euronext Securities to identify those employees who might have been overlooked and include them in the election flow.

A complete election package at a moment’s notice

Another notable aspect was the short timeframe Danica Pension had to get everything up and running. In this regard, Simon Cardel Langeland points out that Euronext Securities’ responsiveness contributed to a smooth process. “From the moment we contacted Euronext Securities, everything worked. We got a quick response with a ready-to-go package even though it was short notice. It was also easy for them to integrate our data in their system.” The fact that Euronext Securities could offer an established set-up that Danica Pension could easily fit into gave the Danica team much-needed peace of mind. “When you’re arranging an election, there are plenty of challenges you need to be aware of in connection with the actual event. If we’d had to handle the technical part ourselves, it would have been possible, but much more difficult and time-consuming. It’s nice not to have to worry about the technical aspects of the process.”

Secure voting process ensures election integrity

The secure election process also helped set employees’ minds at ease. “Everyone was certain that the system worked technically, that data was handled properly and according to GDPR regulations, and that anonymity was preserved,” Simon Cardel Langeland says. According to Julie Willum Kjærsgaard, Client Manager at Euronext Securities Copenhagen, making sure that an election process follows the relevant privacy regulations is an important aspect of the election and voting services Euronext Securities provides. “It sends an important signal to employees when they can log onto an external website using a username and password or other digital ID solution. They can be confident that their personal information isn’t being shared without their consent.”



Simon Cardel Langeland agrees. “When you have an external partner involved, it’s important you can vouch for the integrity of the process, and we’ve always been able to do that with Euronext Securities.”

To find out more about Euronext Securities’ voting and election services, please see here.

FACT BOX: ABOUT DANICA PENSION’S ELECTION

• Ran from 1-8 June 2022
• There were 917 employees who were eligible to vote
• Euronext Securities handled the election communication flow and sent emails to all eligible employees notifying them of their right to vote.

O Client Service Model enquadra-se num dos quatro pilares da estratégia do Grupo Euronext - Growth for Impact 2024 - e tem como objetivo primordial a criação de uma cultura comum no que respeita ao serviço ao cliente, bem como o reforço e melhoria da sua experiência, nos diferentes mercados, quer a nível local, quer a nível internacional.    

A introdução de uma ferramenta comum de gestão da relação com o cliente – CRM - nas quatro CSDs que integram a rede Euronext Securities, foi uma das iniciativas desenvolvidas na prossecução do referido objetivo.  

O CRM facilitará, ao cliente, uma experiência harmonizada e possibilitará a cada CSD não só a monitorização diária das interações, mas também a rápida identificação das áreas a melhorar, criando com o cliente uma relação de proximidade baseada na empatia, confiança e colaboração.  

Em Portugal, o CRM foi implementado em junho de 2022 e, neste âmbito, foi criada uma nova função - a de Gestor de Conta Dedicado – Account Manager. Esta posição permitirá apoiar as necessidades dos clientes e contribuir para uma compreensão mais profunda dos seus negócios e necessidades.  

Com este modelo, a Euronext Securities Porto pretende continuar a reforçar os laços com os seus clientes, antecipar as suas necessidades, melhorar a eficiência nas respostas às questões por eles levantadas e continuar a trabalhar numa parceria contínua, em prol do crescimento do mercado português.