NSD, Interfax start testing Single Window for corporate information disclosure
The National Settlement Depository (NSD) and Interfax - Center for Corporate Information Disclosure have begun testing the first version of a Single Window for Disclosure through which companies will be able to release material facts onto the wires of news agencies and file corporate actions with the NSD Corporate Actions Center.Five major companies are participating in the trial operation of the service, which will make it possible to send most corporate actions to the NSD, a joint press release states. As the service is finetuned, it will be expanded to ally types of corporate actions.
"In the summer of last year, we, together with the Bank of Russia, issuers, Russian and global custodian banks and registrars, proposed to authorized agencies to implement a unified information disclosure system. The goal of creating a Single Window is to reduce issuers‘ costs on disclosure of information that is important for the market, accelerate receipt of corporate actions into records system and resolve the problem of discrepancies in data. It is already possible to say with confidence that all of these goals will be achieved," NSD chief executive Eddie Astanin was quoted as saying in the press release.
"Two thirds of issuer companies that we polled last year expressed active interest in such a service. The project received support from the Bank of Russia and was included in the list of initiatives for improving regulation in 2018 that were adopted at the annual strategic session with financial market participants. We are grateful to the NSD for its active assistance in the development of the first version of the platform and expect to fully complete the implementation of the project, which involves compliance with a large number of legal and regulatory requirements, as well as the introduction of additional services for issuers, in the third quarter of this year," Interfax Group executive director Vladimir Gerasimov said.
A Single Window for Disclosure that allows companies to public material facts and information about corporate actions through a single interface involves introduction of NSD formats on the part of agencies, and ensuring that information received through agencies complies with the strict legal and technological requirements of the central depository.
Messages are transmitted through secure channels that comply with ISO 20022 formats, using the e-document flow system of the Moscow Exchange (MOEX: MOEX), which ensures the legal importance of all notifications, the press release states.
Since 2003, issuers, who now number about 2,500 in Russia, have been disclosing notifications of material facts, about 160,000 per year, through five agencies accredited by the Central Bank of Russia. In 2016, a new obligation to publish notifications about corporate actions was introduced for issuers whose registers have an account of a nominal holder - central depository, as well as issuers for whom the NSD acts as the central depository for bonds.
Two thirds of information about corporate actions and material facts coincides. In future, for the effective operation of the Single Window for Disclosure, there are plans to minimize differences between the two types of notifications, which are regulated by two different Bank of Russia regulations, No. 454-P and No. 546-P.
Issuers‘ use of the Single Window will be voluntary and will not affect existing means of disclosing information about corporate actions.
NSD has the status of central depository and is part of the Moscow Exchange Group.