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Notice
Effective 20 July 2020 onward, ASX (in its role as a National Numbering Agency) will allocate International Securities Identification Numbers (ISIN) codes for entitlements in non-renounceable rights issues to facilitate electronic identification and acceptances into rights issues by holders. This new ISIN will be separate to the ISIN allocated to the parent financial product.
The new ISIN will only be used during the period between the ex-date and the application close date for communications purposes only to enable settlement participants to seek instructions from their clients. There will be no trading on the new ISIN.
The availability of the ISIN supports settlement participants in obtaining client instructions from wholesale clients (particularly those clients located overseas communicating via SWIFT messages) for corporate action processing, i.e. whether to take up the new securities arising from the rights issue or, alternately, let them lapse. Previously settlement participants have created “dummy” codes for the rights issue in order to seek instructions on the entitlements from their overseas clients. However, as they are not actual ISINs located in an official ISIN database, overseas clients couldn’t identify the rights issue and therefore could not respond automatically. This would result in the settlement participant having to phone their overseas client in order to obtain their instructions.
The change also ensures consistency with renounceable rights issues (for which ISIN allocation occurs), thus facilitating client instructions in respect of entitlements under rights issues on the same basis across all rights issues.
This change was discussed and endorsed by the corporate actions working group held in 2017 as part of the CHESS Replacement project.
The ISIN will be available in the ReferencePoint Master List, and also the ReferencePoint ISO 20022 Corporate Action service. There is no change to the NR event in the ReferencePoint Corporate Action Message (E34) for Non-Renounceable Corporate Action.
The new security will typically have the following attributes:
ISIN |
Issued by ASX as the responsible National Numbering Agency (NNA); or the relevant NNA if the entity is foreign incorporated. |
ASX Code |
Unquoted code to be identified by a five letter code being entity code and two letter suffix being “AA-AZ” |
Message Type |
SK |
Security Description |
UNQUOTED ENTITLEMENT (INTERMEDIATE) SECURITY
|
Security Type |
09 – Entitlements
Security Type 9 will be reserved for this new ISIN entitlement code to align its purpose similar to Security Type 10 to identify Rights for renounceable offers.
Temporary Object Security previously tagged with Security Type 9 (Entitlements) as part of non renounceable event will be immediately assigned with its actual Security Type e.g. 01 – Ordinary shares, 06 – Trust Units, 40 – Options pursuant to the offer details. |
Quoted Security Indicator |
2 (Unquoted and Not Tradable) |
Last Active Date |
Non Renounceable Applications Close Date |
Upcoming Events
Date |
Event |
Notice No. |
5 Oct 2020 |
0820 - New ASX ComNews Sub Report Type for Special Dividends |
08/20 |
What do I need to do by when?
Customers are advised to take note of the introduction of the new ISIN for entitlement in non-renounceable rights issue as detailed in this Notice.
Need more information?
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Contact information
Customer Technical Support
1800 663 053
+612 9227 0372
CTS@asx.com.au