25.02.2020

SIX Information – publication of term sheet information

As the National Numbering Agency, SIX Financial Information is responsible for assigning and allocating securities numbers and ISINs on the Swiss and Liechtenstein markets as well as Belgian securities identification numbers and ISINs on the Belgian market.  National identification numbers as well as the ISIN ensure (unique) identification and are listed in the term sheets and issue prospectuses. Various issuers often distribute “provisional / indicative” term sheets, which usually contain provisional identification numbers, in order to sound out the response of the market. Depending on the level of demand, the internal issuing process will continue and the issue will be legally executed.

Only issuers (or contractually obliged third parties) send term sheets to Connexor

This “indicative” term sheet information often reaches competitors, who enter it in their systems at this early stage and consequently distribute it before publication at SIX Financial Information (SFI). Investors who are required to subscribe and settle such “indicative” issues during this preliminary phase have therefore contacted SFI and complained about the “overdue” publication of the term sheet information in SFI systems. They require the reference data from SFI in order to process the transaction in a timely manner.

SFI will no longer be opening instruments on behalf of third parties

Various banks have subsequently asked SFI to open such instruments and to publish the data, even at the request of third parties. If SFI were to allow third party openings in the Swiss market, the data would not be “issuer approved”, which is not contractually regulated (liability issues). In addition, the automated distribution of product event data would be severely impaired. This could also give rise to the situation where a security number reserved in advance by the issuer can no longer be used because another security number has already been assigned on the basis of a request from a third party.

SIX therefore considers it useful to require issuers to transmit term sheet information to SIX via CONNEXOR-IBT before or at the latest at the same time as the “indicative” market publication, so that publication in SIX products can take place in a timely manner.

SSPA News Signup