SMPG
Norwegian Market
Guidelines for implementing Dealing messages in Norway - DRAFT
Based on SWIFTNet Funds 4.0
Norwegian Fund Market Practice Group
2008-02-13
Version 0.4
Revision history
|Ver |Date |Author |Comments |
|0.1 |2007-09-19 |Group Meeting |Subscription message |
|0.2 |2007-10-17 |Group Meeting |Subscription Confirmation added |
|0.3 |2007-11-14 |Group Meeting |Redemption and Switch messages added |
|0.4 |2008-02-13 |Arild T. Aukrust |Use Cases added |
|0.5 |2008-02-20 |Group Meeting |Holding related messages added |
| | | | |
| | | | |
Group Members
• Fredrik Wiencke, TietoEnator
Godtfred Berge, VPS
Herman Låhne Andersen, EDB
John Christiansen, EDB
Even Flugstad, VPS
Arild T. Aukrust, VPS (Chairman)
Table of Contents
1. Introduction 5
2. General Market Practices in Norway 5
Market practice for subscription 6
Market practice for redemption 7
Market practice for switches 8
3. Price report 9
MX reda.001.001.03 PriceReportV03 9
4. Common order related messages 9
MX setr.016.001.03 OrderInstructionStatusReportV03 9
Related reference 9
Order Details Report / SwitchOrderDetailsReport 9
MX setr.018.001.03 RequestForOrderStatusReportV03 9
OrderReference 9
MX setr.017.001.03 OrderCancellationStatusReportV03 9
Related reference 9
5. Subscription related messages 10
MX setr.010.001.03 SubscriptionOrderV03 10
OrderDateTime 10
OrderType 10
FinancialInstrumentDetails 10
Gross Amount/Settlement Amount 10
CashSettlementDetails/BulkCashSettlementDetails 10
CashSettlementDate 10
MX setr.012.001.03 SubscriptionOrderConfirmationV03 10
Related reference 10
DealingPriceDetails 10
ChargeGeneralDetails 10
MX setr.011.001.03 SubscriptionOrderCancellationRequestV03 11
6. Redemption related messages 11
MX setr.004.001.03 RedemptionOrderV03 11
OrderDateTime 11
FinancialInstrumentDetails 11
CashSettlementDetails/BulkCashSettlementDetails 11
MX setr.006.001.03 RedemptionOrderConfirmationV03 11
Related reference 11
DealingPriceDetails 11
ChargeGeneralDetails 11
MX setr.005.001.03 RedemptionOrderCancellationRequestV03 11
7. Switch Related Messages 11
MX setr.013.001.03 SwitchOrderV03 11
MX setr.015.001.03 SwitchOrderConfirmationV03 12
Related reference 12
PriceDetails 12
ChargeGeneralDetails 12
MX setr.014.001.03 SwitchOrderCancellationRequestV03 12
8. Transfer related messages 12
MX sese.001.001.02 TransferOutInstructionV02 12
MX sese.005.001.02 TransferInInstructionV02 12
9. Holding related messages 12
MX semt.003.001.02 AccountingStatementOfHoldingsV02 12
StatementBasis 12
AuditedIndicator 13
FungibleIndicator 13
BalanceForAccount/AggregateQuantity 13
MX semt.006.001.02 StatementOfInvestmentFundTransactionsV02 13
10. Description of the Norwegian Participants 14
Introduction
This document describes the usage of Dealing messages in the Norwegian market. We refer to the different building blocks and elements in each message. We have concentrated on describing the minimum of required data within each message type. In some areas where there is a “choice amongst” option we have pinpointed which choice is preferred in the Norwegian market.
This document covers the specific detail elements related to the message, thus leaving out description of general building blocks (i.e. MessageIdentification).
Areas not commented follow default description and rule handling. However the different service providers may not cover all possibilities enabled in the message structure.
This type of document replaces the earlier excel versions used for describing market practices related to the messages.
General Market Practices in Norway
Settlement of the financial instrument and cash takes place in a delivery versus payment (DVP) environment.
Known customer/shareholder – customer already identified by SSN or organization number. Account number/account identifier (AccountIdentification) must be provided.
Market practice for subscription
[pic]
Market practice for redemption
[pic]
Market practice for switches
[pic]
Price report
MX reda.001.001.03 PriceReportV03
Price report is primarily used to provide the net asset value and price information for financial instruments on specific trade dates (PriceValuationDetails).
Historic price information (ValuationStatistics) and fund performance information (PerformanceDetails) has not been reviewed.
Common order related messages
MX setr.016.001.03 OrderInstructionStatusReportV03
Related reference
Related reference is considered mandatory as a reference to the message this confirmation refers to. Reference refers to MessageIdentification, Identification.
Order Details Report / SwitchOrderDetailsReport
The following are to be used (choice amongst)
Status – PACK (Accepted) or COSE (Already executed)
Rejected
Cancelled
MX setr.018.001.03 RequestForOrderStatusReportV03
Requests a MX setr.016.001.03 OrderInstructionStatusReportV03.
OrderReference must be specified.
MX setr.017.001.03 OrderCancellationStatusReportV03
Should be sent as a response to all cancellation messages.
Related reference
Related reference is considered mandatory as a reference to the message this confirmation refers to. Reference refers to MessageIdentification, Identification.
Subscription related messages
MX setr.010.001.03 SubscriptionOrderV03
OrderDateTime
If supplied, the specified “OrderDateTime” may be evaluated against cut-off rules to determine the correct price datetime. However, time of actual cash settlement may overrule this according to agreed processing rules.
OrderType
If the order is related to a regular savings plan, it is recommended that “RegularSavingsPlan” is specified to identify the type of order.
FinancialInstrumentDetails
ISIN is always used as Identification.
Gross Amount/Settlement Amount
Gross Amount should always be specified. If Settlement Amount is not specified, it will be set equal to Gross Amount.
CashSettlementDetails/BulkCashSettlementDetails
CreditTransferDetails or DirectDebitDetails should be used to specify cash settlement.
For automatic matching of incoming cash settlements, “reference” within CreditTransferDetails will be used.
CashSettlementDate
CashSettlementDate is mandatory in case of DirectDebit settlement.
MX setr.012.001.03 SubscriptionOrderConfirmationV03
Related reference
Related reference is considered mandatory as a reference to the subscription message this confirmation refers to. Reference refers to SubscriptionOrder, MessageIdentification, Identification.
DealingPriceDetails
Type should always be ACTU (Actual Price).
ChargeGeneralDetails
If charge details are supplied, type UCIC (UCITSCommission) should be specified for “ordinary” subscription and redemption charges.
MX setr.011.001.03 SubscriptionOrderCancellationRequestV03
CancellationByReference - OrderReference must be specified.
Redemption related messages
MX setr.004.001.03 RedemptionOrderV03
OrderDateTime
If supplied, the specified “OrderDateTime” may be evaluated against cut-off rules to determine the correct price datetime.
FinancialInstrumentDetails
ISIN is always used as Identification.
CashSettlementDetails/BulkCashSettlementDetails
CreditTransferDetails may be used to specify cash settlement. If not supplied, SSI (Standing Settlement Instruction) from investors account will be used.
MX setr.006.001.03 RedemptionOrderConfirmationV03
Related reference
Related reference is considered mandatory as a reference to the redemption message this confirmation refers to. Reference refers to RedemptionOrder, MessageIdentification, Identification.
DealingPriceDetails
Type should always be ACTU (Actual Price).
ChargeGeneralDetails
If charge details are supplied, type UCIC (UCITSCommission) should be specified for “ordinary” subscription and redemption charges.
MX setr.005.001.03 RedemptionOrderCancellationRequestV03
CancellationByReference - OrderReference must be specified.
Switch Related Messages
MX setr.013.001.03 SwitchOrderV03
Sell-driven switches are used in the Norwegian market.
InvestmentAccountDetails in the SwitchOrderDetails section must be used.
RedemptionLegDetails / FinancialInstrumentQuantityChoice
UnitsNumber, NetAmount, GrossAmount or HoldingsRedemptionRate should be used.
SubscriptionLegDetails / FinancialInstrumentQuantityChoice
PercentageOfTotalRedemptionAmount must be used. Total of percentages specified must be 100.
CashSettlementDetails is not supported in the Norwegian market.
MX setr.015.001.03 SwitchOrderConfirmationV03
Confirmation is sent when the total switch order is executed, not partially for each leg.
Related reference
Related reference is considered mandatory as a reference to the switch message this confirmation refers to. Reference refers to SwitchOrder, MessageIdentification, Identification.
InvestmentAccountDetails in the SwitchOrderDetails section will be used.
PriceDetails
Type should always be ACTU (Actual Price).
ChargeGeneralDetails
If charge details are supplied, type SWIT (Switch) should be specified for switch charges.
MX setr.014.001.03 SwitchOrderCancellationRequestV03
CancellationByReference - OrderReference must be specified.
Transfer related messages
MX sese.001.001.02 TransferOutInstructionV02
MX sese.005.001.02 TransferInInstructionV02
Holding related messages
Sub Account reporting is not supported in the Norwegian market.
MX semt.003.001.02 AccountingStatementOfHoldingsV02
StatementBasis
StatementBasisAsCode, TRAD is used. (The statement is based on trade date positions.)
AuditedIndicator
The indicator is set to NO. There has been no manual auditing activities involved.
FungibleIndicator
To be determined – probably NO?
BalanceForAccount/AggregateQuantity
Quantity is represented as Unit.
MX semt.006.001.02 StatementOfInvestmentFundTransactionsV02
No further comments related to this message.
Description of the Norwegian Participants
The objectives are to describe the participants, what they do and if possible to give an ISO 20022 synonym.
|Participant |Description |Function & name within Norwegian market |
|Regulator |The regulator is the state authority which lays down the|The Financial Supervisory Authority of Norway |
| |rules for the market participants. |(Kredittilsynet) |
| |It is also responsible for controlling the compliance | |
| |and the respect of the rules defined by the Asset | |
| |manager in accordance with the prospectus | |
|Investor |The party whose money is invested and who benefits from |Final beneficiary (investor, andelseier (shareholder))|
| |the performance of such investment. It can either be an | |
| |individual or an institutional investor. | |
|Fund company |The company that launches the fund, determines the |Fund company (forvaltningsselskap) |
| |investment strategy, appoints the service providers, and| |
| |makes all major decisions for and on behalf of the fund.| |
| |It is responsible for distribution and marketing of the | |
| |fund. | |
|Asset manager |It executes the investment strategy, selects the assets |Asset manager (Fondsforvalter) |
| |of the portfolio in accordance with the fund objectives,|This role is, with few exceptions taken care of by the|
| |as reflected in the fund prospectus. It places order on |Fund company. |
| |financial instruments in accordance with the fund's net | |
| |inflows and outflows. | |
|Fund accountant |It records the fund's assets and liabilities, calculates|This role is, with few exceptions taken care of by the|
| |the fund's net asset value (NAV). |Fund company. |
|CSD |It is not mandatory to register Funds within the CSD. |CSD |
| |The Central Securities Depository (CSD) provides its |(VPS – Verdipapirsentralen |
| |members with an efficient and secure method for fast and|(Norwegian Central Securities Depository)) |
| |safe settlement. It has processing capacities for |Most issuers of fund in the Norwegian market are using|
| |payment and settlement. It holds and controls securities|CSD services. |
| |holdings including fund units. The CSD also provides |Exceptions are DnBNOR and Nordea. |
| |distributors with solutions for entering orders, which | |
| |are handled automatically. There are also features for | |
| |the end-investor for order entry, including | |
| |subscription, redemption, switches and saving plans. In | |
| |addition the investor can keep track of all transactions| |
| |and holdings. Tax issues are also handled by the CSD, | |
| |both for investors and issuers. | |
|Custodian |The bank who processes the bank accounts on behalf of |Custodian bank |
| |the Funds. |(depotbank) |
|Transfer agent |This role is taken care of by the CSD as well as the |CSD and Fund Company |
| |Fund Companies | |
|Distributor |The distributor is the party contracting with the Fund |Distributor (distributør) |
| |Company in order to sell the fund to investors. |This role is held by Banks, independent distributors |
| |The contract includes specific financial conditions to |as well as the Fund Companies |
| |distribute the fund | |
|Hub |It manages and centralizes orders communication, |CSD (VPS) |
| |settlement and coordination among the various parties. | |
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