Enhanced proxy voting service with ISS: Significant improvements

28.01.2013

Further to the delivery of our enhanced proxy voting service on 27 February 2012, additional improvements are now freely available to customers of Clearstream Banking1 who have subscribed to this service, as follows:

  • Confirmation of vote status, via SWIFT MT567 Corporate Action Status and Processing Advice messages; and
  • Confirmation of meeting results, via ProxyExchange or SWIFT MT568 Corporate Action Narrative messages.

Confirmation of vote status via MT567

This service, which is available immediately, has the following characteristics:

  • Clearstream Banking customers who use SWIFT will receive real-time MT567 status update messages.
  • An MT567 message will be sent per MT565 Corporate Action Instruction message received.
  • Messages will include acceptance of instructions by ISS or, if rejected, rejection notifications with any of 14 specific reason codes.
  • A text-based description of the reason is provided if not covered by the specific reason codes.
  • Subsequent rejection by intermediaries downstream will also trigger an MT567 message, supported by the same reason codes.

Note: Customers accessing the enhanced proxy voting service via SWIFT ISO 15022 will receive the MT567 messages without the need to request them.

Confirmation of meeting results

This service, which is also available immediately, has the following characteristics:

  • Customers will be able to access meeting results through ProxyExchange or receive them via SWIFT ISO 15022 MT568 messages.
  • ISS local research analysts will source and code meeting results at the resolution level.
  • The collection process will be triggered by the legal (or best) practice disclosure deadline in each market, ensuring that meeting results are distributed at the earliest opportunity after meeting date.
  • Notification data will include:

    • Pass/Fail summary for each voting agenda item;
    • Indicator of the level of results disclosed by the issuer;
    • Flag indicating non-disclosure by the issuer (visible on ProxyExchange but will not trigger a MT568 message);
    • Number of shares voted “with” and “against” management as well as abstain votes;
    • Percentage of shares voted “with” and “against” management or abstained as compared to the number of shares voted at the meeting;
    • In the U.S.A., the number and percentage of shares voted for “say on pay” one-, two- and three-year frequencies;
    • Flag confirming whether the meeting was conducted by poll, show of hands or proxy;
    • Meeting results calculation method detailed for each market.

  • ProxyExchange reports (for each of which the subscriber can chose to include or exclude meeting results):

    • Vote Summary Report;
    • Print Friendly View Report;
    • Voting History for Issuer Report.

  • Historical Information.

    A new data point will be available indicating whether an issuer with an upcoming meeting has past results available. In such cases, subscribers can access and export meeting results directly through the Main Meeting List View for easy retrieval of the past year’s results, enabling essential review and analysis when voting.

Customer benefits

  • Confirmation of vote status via MT567

    MT567 messages will enable subscribers to keep up to date with the status of their vote instructions. This complements the existing status information already available through ProxyExchange and makes straight-through processing (STP) of this information easier.
  • Confirmation of meeting results

    The Proactive Meeting Results Service is available for all meetings dated on/after 1 January 2013 and enables subscribers to analyse past and present meeting results by issuer at the earliest opportunity post-meeting.

    Already subscribed customers using SWIFT ISO 15022 standards will be contacted by their Clearstream Banking Customer Service or Relationship Officer to determine whether they would like to use the MT568. All new subscribers electing for SWIFT messaging will receive the MT568 by default, with the possibility to opt out.

    ProxyExchange will be enhanced with this additional information without any further action required by the subscriber.

Further information

Customers who have not yet subscribed but are interested to do so can access further information and subscription packs at:

http://www.clearstream.com/ci/dispatch/en/kir/ci_nav/2_custody/028_proxy

To schedule the appropriate platform training and discuss migration or for any further information, customers may contact their Clearstream Banking Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in the Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking, société anonyme, registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).

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