Participant to Issuer Sponsored Conversion Process

Table of Contents


Participant to Issuer Sponsored Conversion Process Flow

Participant to Issuer Sponsored Conversion Process

StepDescriptionPartyRecipient / ObserverMessage ReferenceAPI Contract
1

The Participant populates the Conversion Request with the following:

  1. Mandatory ISO 20022 elements defined in the Message Usage Guidelines;
  2. Optional ISO 20022 elements defined in the Message Usage Guidelines where applicable to the transaction;
  3. Related ASX business values and rules applicable to the transaction.

The Participant sends the Conversion Request to the CSP.

Sender Participant

CSP

Transfer / Conversion Request (hold_211)

-
2

The CSP validates the request against the schema and business validation rules including that sufficient units are available in the Delivering Account (HIN) for the Security Code.

If the Conversion Request is schema and business valid, then refer to step 3; "On Success"; or

If the Conversion Request is not schema or business valid, then refer to step 7; "On Fail".

CSP---
On Success
3

Decrease the holding balance in the Delivering Account (HIN) by the Unit Quantity on the Conversion Request.

CSP---
4

The CSP sends an Account Notification with the Delivering Account (HIN) details to the Issuer (Registry) of the Security to be used with the conversion request to an Issuer Sponsored Holding.

CSPIssuer (Registry) Account Notification (acct_002)

Account.Account
(AccountStandardView)
(AccountAdditionalView)


Account.Holder
(HolderStandardView)

5

The CSP sends a Conversion Confirmation to the Issuer (Registry) of the Security to allow the conversion to an Issuer Sponsored Holding to be completed.

This message will also be sent where ASX Operations initiates the process (bulk conversion).

CSPIssuer (Registry) Transfer / Conversion Confirmation (hold_216)Holding.Holding2Issuer
(Holding)
6

The CSP sends a Conversion Confirmation to the Sender Participant. If the Conversion results in the Unit Quantity of the Security within the Delivering Account (HIN) reduced to zero, then refer to step 8; "Zero Balance".

This message will also be sent where ASX Operations initiates the process (bulk conversion).

CSPSender Participant 

Transfer / Conversion Confirmation (hold_216)

Holding.Holding
(Holding)
On Fail
7

If the Conversion Request fails schema or business validation, the CSP will send the Participant:

  • An Invalid Transaction Notification with the relevant error code for schema failure; or
  • A Rejected Transaction for business validation failure.
CSPSender Participant

Invalid Transaction Notification (comm_807)

Rejected Transaction (comm_808)

-
Zero Balance
8

If the units of the Holding in the Delivering Account (HIN) have decreased to zero, the CSP sends a 'Zero Balance' Account Notification for the Delivering Account (HIN) to the Issuer (Registry) of the SecurityRefer to Change in Holding Balance for further details.

CSPIssuer (Registry) --

Business Values and Rules

The following request must be received to commence the Participant to Issuer Conversion process:

  • a Conversion Request from a Participant.

The following notifications are sent sent to the Participant and Issuer (Registry) involved in a Participant to Issuer Conversion if the request is schema and business valid:

Conversion Request (Participant to Issuer Sponsored Conversion)

A Conversion Request will be created by the Participant.

ASX Element Name

ISO 20022 ElementGuidelines
Transaction IdTransaction Identification

A unique identifier for the Conversion Request. Further details of Transaction Identifications are detailed /wiki/spaces/ASX2/pages/2130923 

Security Code

Financial Instrument Identification

Identifies the Security that is being converted. Either a Security Code, an ISIN or both elements may be populated. Where both elements are present, the ISIN and Security Code must refer to the same security. Further details of Security Code and ISIN are detailed here

Delivering Account Identifier

Quantity And Account Details / Safekeeping Account 

Identifies the Account (HIN) from which units are being delivered. Delivery of units is only permitted from Accounts (HINs) which are active and have not been locked or cancelled.

The Delivering Account (HIN) must be controlled by the Sender Participant.

Movement ReasonSettlement Instruction Processing Additional Details

Identifies the reason that a conversion is being performed. Must be one of the valid values outlined in the Proprietary Code List (30 - MovementReasonCode).

Unit Quantity

Settlement Quantity

The Unit Quantity of the Holding which is being converted.

Delivering ParticipantDelivering Settlement Parties / Party 1 / IdentificationIdentifies the party delivering units and must always be the same as the Participant sending the request.
Transaction BasisSecurities Transaction Type

Characterises the reason for the securities movement. For a Conversion Request, this must be Facility for Non Reportable Transactions (FNRT). Refer to the Transaction Basis table for further information.

Settlement Transaction ConditionSettlement Transaction ConditionIdentifies the type of transaction. In this case, Participant Conversion to Issuer Sponsored (PCVI). 
Receiving Account IdentifierReceiving settlement Parties / Party1 / Safekeeping Account

The Receiving Account Identifier (SRN) can be optionally supplied if the SRN is known to which units are being received.

Participant Reference

Trade Identification 

The Participant Reference field allows a Participant to optionally include a reference on the request which remains private to the Participant. No business validations are performed on this field.

Supplementary Reference 

Common IdentificationThe Supplementary Reference field allows a Participant to optionally include a reference on the request which remains private to the Participant. No business validations are performed on this field.
Override Basis of MovementTrade Transaction Condition

The Override Basis of Movement field(s) allow a Participant to optionally Override the default Basis of Movement for the transaction where there are current corporate actions.

There can be up to 3 Override Basis of Movement present on the Conversion Request, and the value must exist in the Basis of Movement table.

Guaranteed Foreign IndicatorInvestor Capacity

Used when this request is to be processed as a foreign to foreign transaction (only applicable for Securities subject to foreign ownership restrictions).

This can only be indicated if the Holding currently resides in the Delivering Account (HIN) with a 'Foreign' Residency Indicator.

Account Notification - Issuer (Registry) of the Security

An Account Notification is sent to the Issuer (Registry) of the Security prior to the Conversion Confirmation. This notification contains details of the Account of the receiving Issuer Sponsored Holding.

Account Elements

ASX Element Name

 ISO 20022 Element

Guidelines

Transaction IdRelated Reference / ReferenceProvided on the Conversion Request, the Transaction ID is a unique Identifier. Further details of Transaction Identifications are detailed here.
Notification ReasonConfirmation Details / Identification

Indicates the reason the account details are sent to Issuer of the security. In this case; Conversion (CONV).

Account IdentifierInvestment Account / Identification

Identification of the Delivering Account Identifier (HIN) that the Conversion Request pertains to.

Account TypeType / Proprietary / Identification

Indicates the Account Type of the Delivering Account Identifier (HIN) that the Conversion Request pertains to.

Account StatusAccount Status

Indicates the status of the account, either:

  • Active (ACTV); or
  • Locked (LOCK).

Where the Account Status is Active (ACTV), this will be indicated under the Account Status / Enabled tag.

Where the Account Status is Locked (LOCK), this will be indicated under the Account Status / Other Status / Identification tag.

Ownership TypeOwnership Type / Code

Indicates the Type of Account Ownership, either:

  • Single holder (SIGL); or
  • Joint holder (JOIT).
DesignationDesignationAdditional information about the Account.
Account NameOther Party Details / Account Name

Indicates the Account name and can be used as the name for the purpose of the register of members. It is the concatenation of all Holder names separated with a plus symbol.

Security CodeFinancial Instrument Details / Other Proprietary Identification / IdentificationProvided on the Conversion Request, the Security Code identifies the Security that is being converted. Both Security Code and ISIN will always be present on the Account Notification. Further details of Security Code and ISIN are detailed here
Controlling Participant Account Servicer Indicates the Participant that controls an Account within the CSP.
Registered Address
Address Line 1Other Party Details / Postal Address / Address Line

Indicates the Registered Address for the Account. Refer to Account and Holder Changes for further information regarding the migration of Registered Addresses. 

Address Line 2Other Party Details / Postal Address / Address Line
Address Line 3Other Party Details / Postal Address / Address Line
Address Line 4Other Party Details / Postal Address / Address Line
Address Line 5Other Party Details / Postal Address / Address Line
Post CodeOther Party Details / Postal Address / Post Code
Town NameOther Party Details / Postal Address / Town Name
State (Country sub-division)Other Party Details / Postal Address / State
CountryOther Party Details / Postal Address / Country
Residency IndicatorOther Party Details / Additional Information

Identifies the residency of the Account for the purposes of Foreign Ownership Restrictions, either:

  • Domestic (DMST);
  • Foreign (FRGN); or
  • Mixed (MIXD).

Holder Elements

ASX Element Name

 ISO 20022 Element

Guidelines

Where ownership type is single holder, holder details are to be populated within Primary Owner <PmryOwnr>

Where ownership type is joint holder, holder details are to be populated within Joint Owner <JntOwnr>

Individual holder attributes are to be populated within Individual Person <IndvPrsn>
Holder NameName

Where the Holder is an individual, the name will be the full legal name of the Holder compromising of title, given names and last names.

Organisation holder attributes are to be populated within Organisation <Org>
Holder NameName

Where the Holder is a company, trust, partnership, superannuation fund, deceased individual, government organisation, other non-individual or unknown holder type, the name will be the registered name.

Holder TypeType of Organisation / CodeIndicates the type of Holder.
Following attributes are outside the Individual Person <IndvPrsn> and Organisation <Org> elements

Holder Identifier

Client Identification


Indicates the identifier associated to a Holder.

Holder StatusAdditional Information  / Status

Indicates the current status of the Holder.

Conversion Confirmation - Issuer (Registry)

A Conversion Confirmation will be sent to the Issuer (Registry), allowing the conversion to an Issuer Sponsored Holding to be completed.

ASX Element Name

ISO 20022 ElementGuidelines
Transaction IdAccount Owner Transaction identification

Provided on the Conversion Request, the Transaction ID is a unique identifier. Further details of Transaction Identifications are detailed here. 

Security Code

Financial Instrument Identification

Provided on the Conversion Request, the Security Code identifies the Security that is being converted. Both Security Code and ISIN will always be present on the Conversion Confirmation. Further details of Security Code and ISIN are detailed here

Delivering Account Identifier

Quantity And Account Details / Safekeeping Account 

Provided on the Conversion Request, the Delivering Account Identifier is the Account (HIN) from which units are being delivered.

Movement ReasonSettlement Instruction Processing Additional Details

Provided on the Conversion Request, the Movement Reason identifies the reason that a conversion is being performed. Must be one of the valid values outlined in the Proprietary Code List (30 - MovementReasonCode).

Unit Quantity

Settled Quantity

Provided on the Conversion Request, the Unit Quantity of the Holding which is being converted.

Delivering ParticipantDelivering Settlement Parties / Party 1 / Identification

Provided on the Conversion Request, identifies the party delivering units and will always be the same as the Participant sending the request.

Receiving Participant Receiving Settlement Parties / Party 1 / Identification

Populated with the preferred Party Identifier of the Issuer, the Receiving Participant identifies the party receiving units.

Transaction BasisSecurities Transaction Type

Provided on the Conversion Request, the Transaction Basis characterises the reason for the securities movement. For a Conversion Request, this will be Facility for Non Reportable Transactions (FNRT). Refer to the Transaction Basis table for further information.

Settlement Transaction ConditionSettlement Transaction ConditionIdentifies the type of transaction. In this case, Participant Conversion to Issuer Sponsored (PCVI). 
Registration ReferenceRegistration Reference

Populated with an Account Identifier that links to the Account Notification will be sent to the Issuer (Registry).

In this process it will be a HIN matching that of the Delivering Account Identifier.

Receiving Account IdentifierReceiving Settlement Parties / Party 1/Safekeeping Account / Identification

Provided on the Conversion Request, the Receiving Account Identifier (SRN) can be optionally supplied if the SRN is known to which units are being received.

Basis of MovementTrade Transaction Condition

The Basis of Movement which was applied to the transaction taking into account the Override Basis of Movement, where submitted.

Guaranteed Foreign IndicatorInvestor Capacity

Provided on the Conversion Request, the Guaranteed Foreign Indicator (ORFF) is used when this request is to be processed as a foreign to foreign transaction (only applicable for Securities subject to foreign ownership restrictions).

This can only be indicated if the Holding currently resides in an Account (HIN) with a 'Foreign' Residency Indicator.

APIR CodeFinancial Instrument Identification / INFO / DescriptionIf the Security involved in the Conversion Request has an APIR Code it will be provided. 

Conversion Confirmation - Participant

A Conversion Confirmation will be sent to the Sender Participant, informing the Participant of the Conversion to an Issuer Sponsored Account.

ASX Element Name

ISO 20022 Element

Guidelines
Transaction IdAccount Owner Transaction identification

Provided on the Conversion Request, the Transaction ID is a unique identifier. Further details of Transaction Identifications are detailed here. 

Security Code

Financial Instrument Identification

Provided on the Conversion Request, the Security Code identifies the Security that is being converted. Both Security Code and ISIN will always be present on the Conversion Confirmation. Further details of Security Code and ISIN are detailed here

Delivering Account Identifier

Quantity And Account Details / Safekeeping Account 

Provided on the Conversion Request, the Delivering Account Identifier is the Account (HIN) from which units are being delivered.

Movement ReasonSettlement Instruction Processing Additional Details

Provided on the Conversion Request, the Movement Reason identifies the reason that a conversion is being performed. Must be one of the valid values outlined in the Proprietary Code List (30 - MovementReasonCode).

Unit Quantity

Settled Quantity

Provided on the Conversion Request, the Unit Quantity of the Holding which is being converted.

Delivering ParticipantDelivering Settlement Parties / Party 1 / IdentificationProvided on the Conversion Request, identifies the party delivering units and will always be the same as the Participant sending the request.
Receiving Participant Receiving Settlement Parties / Party 1 / Identification

Populated with the preferred Party Identifier of the Issuer, the Receiving Participant identifies the party receiving units.

New Total Holding BalanceNew Holding BalanceThe New Holding Balance of the Delivering Account (HIN) as a result of the conversion being completed.
Transaction BasisSecurities Transaction Type

Provided on the Conversion Request, the Transaction Basis characterises the reason for the securities movement. For a Conversion Request, this must be Facility for Non Reportable Transactions (FNRT). Refer to the Transaction Basis table for further information.

Settlement Transaction ConditionSettlement Transaction ConditionIdentifies the type of transaction. In this case, Participant Conversion to Issuer Sponsored (PCVI). 

Participant Reference

Trade Identification 

The Participant Reference field allows a Participant to optionally include a reference on the request which remains private to the Participant. No business validations are performed on this field.

Basis of MovementTrade Transaction Condition

The Basis of Movement which was applied to the transaction taking into account the Override Basis of Movement, where submitted.

APIR CodeFinancial Instrument Identification / INFO / DescriptionIf the Security involved in the Conversion Request has an APIR Code it will be provided. 



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