Corporate Actions Project - XBRLarchive.xbrl.org/23rd/sites/23rdconference.xbrl.org/... ·...
Transcript of Corporate Actions Project - XBRLarchive.xbrl.org/23rd/sites/23rdconference.xbrl.org/... ·...
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Corporate Actions Project: A Panel of Experts Considers XBRL for Financial Reporting,
C t A ti d B dCorporate Actions, and BeyondTrack 2 - Global Implementation and Project Case Studies
Alan Smith, Citi - ModeratorCampbell Pryde XBRL US / Max Mansur SWIFTCampbell Pryde, XBRL US / Max Mansur, SWIFT
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From the program agenda:
10:00am – 11:00amGPI4. Corporate Actions Project: A Panel of Experts Considers XBRL for Financial Reporting, Corporate Actions, and BeyondAlan Smith, Managing Director, CitiThis session will cover expansion of XBRL into areas other than financial accounting:
- Brief background on I2I initiative for corporate actions - Current focus – outreach to issuers and stakeholders in the STP process - Update on DTCC reengineering incorporating XBRL - Update of ADR pilot, focusing on the points in the process where XBRL can be used/introduced
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The Topics◦ The Securities Industry◦ Update on the Corporate Actions Project◦ The Corporate Actions Taxonomy◦ The Corporate Actions Taxonomy
The Panel◦ Moderator: Alan Smith, COO Issuer Services, Citi ◦ Max Mansur, Global Program Manager – XBRL, SWIFT
C b ll P d CEO XBRL US◦ Campbell Pryde, CEO, XBRL US
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Investment as an industryImpact of data & standardsCorporate Actions rationaleCorporate Actions rationale
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Complex and Multi-Dimensional
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Issuers
Corporates
Infrastructure
Liquidity Pools(Fidelity Cross
Stream)
Asset Servicers
Inter-Dealer Brokers (ICAP)
Asset Managers
Scale Players(Fidelity, BGI)
Asset Gatherers
Wire Houses (Prudential, Citi SmithBarney)
Asset Owners
Mass Retail(10K – 100K)
Issuers
Corporates
Infrastructure
Liquidity Pools(Fidelity Cross
Stream)
Asset Servicers
Inter-Dealer Brokers (ICAP)
Asset Managers
Scale Players(Fidelity, Blackrock)
Asset Gatherers
Wire Houses (Prudential, Citi SmithBarney)
Asset Owners
Mass Retail(10K – 100K)
Financial Institutions
Stream)
Exchanges / ECN’s (NYSE
EuroNext, TradeOp)
Broker / Dealers (Goldman Sachs,
CMB)
Multi-Managers (Allianz)
SmithBarney)
Private Banks (JPMorgan, Citi Private Bank)
Mass Affluent(>100K)
Financial Institutions
Stream)
Exchanges / ECN’s (NYSE
EuroNext, TradeOp)
Broker / Dealers (Goldman Sachs,
CMB)
Multi-Managers (Allianz)
SmithBarney)
Private Banks (JPMorgan, Citi Private Bank)
Mass Affluent(>100K)
TradeOp)
CSD’s(DTC)
Custodians / Administrators
(State Street, Citi SFS)
Registered Investment
Advisors (RIAs)
High Net Worth (>1MM)
TradeOp)
CSD’s(DTC)
Custodians / Administrators
(State Street, Citi SFS)
Registered Investment
Advisors (RIAs)
High Net Worth (>1MM)
Public Sector
)
Specialized / Focused
(SAC, CAI)
Trust Banks (Wilmington Trust)
Pensions(GM)
Public Sector
)
Specialized / Focused
(SAC, CAI)
Trust Banks (Wilmington Trust)
Pensions(GM)
Clearing Houses(LCH)
Sovereign Wealth Funds (GIC) Clearing Houses
(LCH)
Sovereign Wealth Funds (GIC)
Investment Bankers & Lawyers
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Required report for any stock or bond offered on the market if it impacts holders of offered security
Trading Status: Active, Attachment, BONU - Bonus Issue/Capitalisation Issue, Bankruptcy, CapitalTrading Status: Active, Attachment, BONU Bonus Issue/Capitalisation Issue, Bankruptcy, Capital Distribution, Capital Gains Distribution, Capitalisation, Non-US TEFRA D Certification, Class Action/Proposed Settlement, Consent, Credit Event, Decrease In Value, Detachment, Bond Default, Trading Status: Delisted, Drawing, Dividend Reinvestment , Disclosure, Dutch Auction, Cash Dividend, Dividend Option, Scrip Dividend/Payment, Stock Dividend, Call on Intermediate Securities, Maturity Extension , Warrant Exercise, Increase in Value, Interest Payment, Liquidation Dividend / Liquidation Payment, Full Call/Early Redemption , General Meeting, Court Meeting, Extraordinary Meeting, Ordinary General Meeting, Odd Lot Sale/Purchase, Pari-passu, Partial Redemption with reduction of nominal value, Partial Defeasance / Prefunding, Payment in Kind, Place of Incorporation, Installment Call , Partial Redemption Without Reduction of Nominal Value, Interest Payment with Principal, Priority Issue, Final Maturity, Redenomination, Remarketing Agreement, Intermediate Securities Distribution, Rights Issue/Subscription Rights/Rights Offer, Shares Premium Dividend Smallest Negotiable Unit Spin Off Stock Split/Change in NominalShares Premium Dividend, Smallest Negotiable Unit, Spin-Off, Stock Split/Change in Nominal Value/Subdivision, Reverse Stock Split/Change in Nominal Value, Trading Status: Suspended, Tax Reclaim, Withholding Tax Relief Certification, Worthless
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Strong
Moderate (growing)
Corporate Actions LandscapeCorporate Actions LandscapeIssuer Shareholders’
Meeting
Transfer Courts
Limited
Absent
Unlikely
Moderate (growing)
Tabulator / Agent
Registrar
Publication / Info Agent
Agent
Data
Exchange
Depository
Regulator
TaxData Providers
Global Custodians
Depository
ProxyAgent
Tax Authority
Broker Dealer Custodians
Sub-Custodians
Investment& Funds Mgrs
Institutional Investor
Retail Investor
g
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BackgroundDepositary ReceiptsNext steps & challengesNext steps & challenges
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• 2009 – US initiativeannouncedannounced
f l b l d d– Downstream: move from proprietary to global standard ISO 20022– Upstream of market: use XBRL to standardize input from issuers & agents• 2010 – June publication of business case and case study
2010 O b f Ci i ADR XBRL il• 2010 – October announcement of Citi ADR XBRL pilot• 2011 – June publication of XBRL Corporate Actions Taxonomy• 2011 – Sep Citi posting dividends for ADRs in XBRL• 2011 – Sep BNY Mellon joins ADR XBRL pilot project• 2012 – Q1 live DTCC with Citi, BNY Mellon, GlobeTax
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Market of Issuer WebCRD ®Input FINRA
Current Information Flow - American Depositary Receipts (ADR)
Local Issuer
Central Securities
Registrar / Transfer Agent
Stock Exchange
ADR DepositaryNYSE/NASDAQ
p FINRA
eGovInput or
proprietary fileCentral Securities Depository
Local Custodian
ExchangeWebsite
GlobeTax
SEC
EDGAR
ADRWebsite
=PDF Announcement
CSD (DTCC)
Website
TaxTreatment
Other Recipients=
=
DTCCWebsite
DTCC filesSMART
TaxTreatment=
Manualinput
Custodian ADR Investor
on SMART
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ADR DepositaryMarket of Issuer
FINRA
Objective Flow for XBRL CA for American Depositary Receipts
ADR DepositaryLocal Issuer
CSD
Registrar / Transfer Agent
Stock Exchange
FINRA
NASDAQ
NYSE
JPM
BNYMCITI
Local Custodian
ExchangeWebsite
DB
JPM
GlobeTax
SEC
EDGAR
ADRWebsite
=
=PDF Announcement
CSD (DTCC)
WebsiteTax
Treatment
ManualInput
=Other Recipients
TRIDC
DTCC ISO20022 msg
=Input
MX
MX
XSP
TaxTreatment
DTCCWebsite
Custodian ADR Investor
= XSP
XBRL DataInstance
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Ready market to consume Ready market to consume ◦ ISO standards well-established◦ Over 4,000 institutions in securities markets globally
C b d US i i h ld i i ll ll k◦ Cross-border – US securities held in virtually all markets XBRL usefulness vis-à-vis ISO standard◦ Many report formats for CA announcements◦ Financial connection: dividends, capital raising, liquidity impact,
stock price management, mergers, spinoffs, etc.◦ Merging market practice and vernacular with global standardg g p g◦ Local (non-English) language labels reduce translation errors◦ Maintaining global ISO elements and extending per market
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Newswires Newswires◦ The 80% solution
Investor engagement – speaking to issuers Investor engagement speaking to issuers◦ Investment Managers, AMF – open letter
Key beneficiaries – getting issuer side to pilot◦ Custodians◦ Investment Managers
Challenges Challenges◦ Tools, different paradigm than financial reporting◦ Awareness & market reach out
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ArchitectureConnection to ISO 20022Interesting details approachesInteresting details, approaches
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Established Infrastructure◦ All public companies in the U.S. have or will have a process to file
XBRL documentsXBRL documents◦ European regulators are also pursuing XBRL initiatives
Allows support in multiple languages Can add concise definitions that allows any issuer to tag a
document. Can have multiple definitions for a tag depending on the
event, jurisdiction, and security. Can tailor the taxonomy to a specific event (Filters) so Issuers
will only see a subset of the Taxonomy◦ Only present what is relevant to the Issuer
Automatically adds extensions to the ISO 20022 document.
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XBRL CorporateXBRL C t XBRL Corporate Actions
DictionaryXBRL Corporate
Action Taxonomy
SWIFT 20022 Data Dictionary
Modeling Business Concepts
Data Dictionary
Industry Accepted Event
Configurations
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All meta-data is in the taxonomy◦ Issuer Taxonomy◦ ISO 20022 Corporate Actions Notification
Message SchemaMessage Schema◦ Mapping Logic
Issuers will only see a subset of the yTaxonomy◦ Only present what is relevant to the IssuerC i d fi i i h ll Create concise definitions that allows any issuer to tag a document.
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Presentation title – dd month yyyy –Confidentiality: xxx19Citi XBRL Pilot – Sibos 2011 Standards Forum – 21 Sep 2011 – Confidentiality: Public
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# 20
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PDF AnnouncementTagged instance using XBRL CA Taxonomy
Converted to ISO 20022 format
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Corporate Actions pTaxonomy Details
25
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Event Listing◦ Event Hierarchy
Selection Criteria◦ Criteria Table◦ Criteria Table
Entry Points◦ Entry Point List
XBRL to ISO Converter◦ XSL Style sheet
Taxonomy Taxonomy
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Event ID◦ Identifies the unique event◦ Multiple announcements may have the same event ID◦ Define a Source Feed URI
Announcement ID◦ Identifies the unique announcement◦ Define a Source Feed URI◦ Define a Source Feed URI
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ISO Taxonomy is represented in XBRL format Combined ISO and XBRL Taxonomy ◦ Shows mapping between XBRL taxonomy and ISO
schemaschema◦ Shows Extension elements to ISO◦ Do not generate an ISO extension schema For future
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Follows DTCC and ISO Structure◦ Event Information◦ Event Agent Information Option InformationOption Information Payout Information Cash
Security Security
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General Information about the event and the announcement
Information does not relate to details of the payout or optionpayout or option
Driven by market practice
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Lessons learned from pilot project Segregate core ISO 20022-mapped concepts
from the market unique exceptionsWill k ISO 20022 i i◦ Will keep ISO 20022 mapping in sync◦ Alignment with ISO 20022 release cycle (annual)◦ Allows U.S. and other market extensions to develop p
and deploy asychronously
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Earnings reports of great interest to investors Proxy◦ Report development is difficult for issuer
Potential benefit from workflow XBRL tools◦ Potential benefit from workflow XBRL tools◦ Investors regularly ask for help with proxy and
shareholder meeting data Masterfile creation – issuance of securities Will there be opportunities for compliance
i h XBRL h b d ?reporting where XBRL eases the burden?
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Thanks!