RRS Now Supporting New Forms Required by UK and HK

Solutions Atlantic has released new forms to support new requirements by the UK and HK regimes.

United Kingdom – FCA

As reported in early April, the FCA  announced its plans to adopt a new TR-1 form which is closer to the ESMA issued form. This new form will be effective on 30 June.

Click the link to see the announcement details (on page 7).

Hong Kong – SFC

As reported early this month, the SFC announced it will move to electronic disclosure filing and has issued a new form. This new form will be effective on 3 July.

Click the link for more details.

RRS Supports EU Net Short Position Sovereign Issuer Thresholds

The EU issued net short position notification thresholds for sovereign issuers on 1 May, 2017.

According to Article 7(2) of the Short Selling Regulation, ESMA has to publish a list of the thresholds applicable to the sovereign issuers for the purpose of the notification to competent authorities of significant net short position in sovereign debt.

The way these notification thresholds are defined is further specified in the Commission Delegated Regulation No 918/2012 (the “DR”). The DR specifies that initial threshold categories shall be:

  1. 0.1% applicable where the total amount of outstanding issued sovereign debt is between 0 and 500 billion euros;
  2. 0.5% applicable where the total amount of outstanding issued sovereign debt is above 500 billion euros or where there is a liquid futures market for the particular sovereign debt.

The additional incremental levels shall be set at 50% of the initial thresholds. The reporting thresholds shall be monetary amounts fixed by applying the percentage thresholds to the outstanding sovereign debt of the sovereign issuer. They will be revised and updated quarterly to reflect changes in the total amount of outstanding sovereign debt of each sovereign issuer.

In addition, the DR states that the amount of outstanding debt should be calculated using a duration adjusted approach. ESMA has published a Q&A document on how to proceed for the duration adjustment.

The table of thresholds contains the name of the sovereign issuer, the amount of outstanding debt duration adjusted, the initial threshold amount and the relevant percentage, the incremental threshold amount and the relevant percentage.

Please note that the figures of the amount of outstanding debt are duration adjusted (not nominal amounts) and are approximations provided by competent authorities.

Solutions Atlantic Gives Compliance Confidence

Provides Audit Services for Global Shareholding Disclosure Workflows

Seeing an ever-growing demand in regulatory changes within the global shareholding disclosure space, Solutions Atlantic today announced it will be providing audit services to help market participants identify gaps in their global shareholding disclosure process.

Since the first of the year, the industry has seen a wave of regulatory announcements ranging from the issuance of new disclosure forms, changes to voting rights, and the tightening of short selling regulations. Missing any one of these regulatory announcements could expose a firm to an enforcement action by regulators for non-compliance. Solutions Atlantic has been in the global shareholding reporting space for more than 15 years, and is recognized for its deep expertise. A number of buy-side firms have come to rely on Solutions Atlantic audits of their shareholding disclosure systems and processes.

“It’s evident by the number of calls coming in that compliance departments are having a real challenge ensuring that they are meeting their global shareholding disclosure obligations with the current systems and processes that they have in place,” said Mitchell Greess, CEO of Solutions Atlantic. “Regardless of whether you have a manual process or an automated solution, periodic reviews need to be done to give compliance a high level of confidence that they have not only applied the rules accurately but that they have not missed any updates to the rules along the way.”

Prior to this service, firms would turn to large consulting and professional services firms which in many circumstances require these firms to educate the consultant on the reporting requirement and or the system being used. With this service, that is no longer the case, firms can readily and affordably gain confidence in their systems and processes without the time-consuming learning curve or a huge budget. PDF Version