Due to adaptation to the market standards Centrálny depozitár cenných papierov SR, a.s. (CDCP) on 1 October 2019 implemented first batch of changes related to processing of the corporate action events. The changes are connected to announcements on realisation of general changes related to issues and issuers sent to the participants by messages according to the ISO standard 20022 via the information system of CDCP (IS CDCP). The general change is mainly change in security essentials and certain details on an issuer, what means change due to which balance of respective securities on accounts was not changed. CDCP shall gradually extend the scope of corporate actions by implementation of reorganisations, i.e. the corporate action events that impact positions of respective securities on accounts, on what the participants will be informed through the IS CDCP. The first type of reorganisation CDCP has implemented to the IS CDCP in November 2019 was the squeeze-out right.
As regards processing of the corporate action events we would like to mention that works on harmonisation of selected debt securities corporate action processing was initiated as well. Harmonisation requirements were identified by the AMI-SeCo in the year 2017 and their implementation to operation is planned on November 2020. Implementation of standards resulting from the harmonisation requires complex analysis together with regulator and law-maker in order to harmonise current market procedures and practices and consequent amendments to the legislation, as well as operation processes of CDCP, issuers and participants in CDCP by the November 2021 at latest.
Author: Peter Nagy