Euronext Securities is pleased to share its Corporate Events Service Description Document and some Frequently Asked Question (FAQs).
We encourage our clients to leverage this comprehensive resource to gain a thorough understanding of our envisioned goals.
We have prepared a comprehensive resource to help clients gain a thorough understanding of our envisioned goals.
Following the publication of our initial draft document (White Paper) in July 2023, we gathered feedback from clients to complete the final Service Description document.
The document outlines Euronext's vision of a completely harmonised and secure method for managing Corporate Events across all assets classes in our CSDs by the end of 2025. This vision aligns with the primary standards set by the ECB's AMI-SeCo working groups, reflecting the state of the European initiative as of December 2023.
Compared to the previous version, changes were made to the following:
Corporate Event payments and notification processes
These will be updated to capture new topics as they may arise.
Questions pertaining to all CSDs
Yes, all clients will have the possibility to interact with Euronext Securities in U2A mode specifically designed for the Corporate Events Service via the recently introduced portal “My Euronext”. Clients who are directly connected with Euronext Securities across multiple markets will experience a consistent client journey. :
It is important to note that this portal will differ from the one set to be launched by November 2023 for Phase 1 of our Portugal initiative.
However, the manner in which clients engage with Euronext Securities for all other services will remain unchanged.
We can confirm that the ISO20022 communication format will be available without any restrictions for all Corporate Events managed by Euronext Securities.
Yes. Notifications can also be sent to third parties (e.g. Proxy Agents), upon client request. These third parties, if authorised, can submit instructions directly on their behalf for specific securities accounts and event categories (comprising groups of CAEV codes).
Yes, Euronext Securities will support the Automated Buyer Protection mechanism, which will be triggered at the buyer's request.
The Transition from a T+2 to a T+1 settlement cycle has multiple implications, including changes in the event's key dates and transaction management. However, it is important to note that this matter is currently under discussion at the European level, involving pertinent financial institutions and authorities. The details on how this transition will impact all post-trade processes will be assessed within the relevant working groups and are beyond the scope of our White Paper.
None. The shift to Central Bank money will not require a Paying Agent to consistently have funds available no later than one day before the pay date. The Paying Agents has the option to choose whether to process their payments in the first settlement window on the pay date or at any time during that day. This flexibility is made possible through the Corporate Events Trigger functionality, granting Paying Agents complete control over their event-related payments.
To date there are no questions only pertaining to Copenhagen
Questions for Milan
As outlined in our Whitepaper, the RNI format will remain available even after the go-live of our new service scheduled for 2025. It is important to clarify that the retirement of the RNI format will affect all services and will not occur before year-end 2027. We will provide the exact date in the upcoming months
No, starting with the launch of the new services, all cash credits and debits related to the Corporate Events service in Central Bank Money for Euronext Securities Milan will be performed on the Dedicated Cash Accounts in T2S.
Questions for Oslo
We will continue with the current procedure, where the Issuer remains responsible for distributing Corporate Event proceeds to Investors via a Paying Agent. On the event's payment date, Euronext Securities will process the payments. In case there is an issue with an Investor's cash account, the funds connected to that payment will be paid out to the Issuer Agents' default account (inputted on the event).
Euronext Securities will also provide the Issuer Agent with comprehensive reports to facilitate in reconciling pending payments that have not yet been disbursed.
The ambition is to harmonise services across Euronext CSDs so that clients operating in all Euronext Securities’ markets will encounter the same service and practise in all market. However, where there are needed and important specific requirements for individual markets considerations can be given to meet those requirements. Hence ES-OSL will implement entitlement calculations to start at Record Date – 10 Business Days which will be equivalent to the current practise of Payment Date – 14 Calendar Days (minimum)
Yes, ES-OSL will provide a consolidated and base liquidity forecast including
1) The cash to be paid by the Paying Agent (to be debited on the Liquidity Bank’s VPO LOM account and base liquidity cash accounts ) and
2) The cash the Participant will receive in the Participant Flow (to be credited on the Liquidity Bank’s VPO LOM account and base liquidity cash accounts). It will not include the cash the Participant/Liquidity Bank will receive in the Investor Flow.
Yes. The Settlement Participant/Liquidity Bank can choose to have the cash arising from the Participant Flow and from the Investor Flow separated from cash arising from trading settlement.
This is done by adding “technical” CSD-IDs (“Regnr”) for the cash from the Participant Flow or Investor Flow or both. The Liquidity Banks are thus notified separately (MT101/103) for the CA cash part. This is optional by the Settlement Participant/Liquidity Bank – the cash can also be netted together with cash from trading activity on existing “Regnr”
To date there are no questions only pertaining to Porto