02 August 2010

CESR publishes a consultation paper on development of pan-European access to financial information disclosed by listed companies

CESR has examined the feasibility of requiring harmonised search facilities throughout the OAM network. These harmonised search facilities would be based on a set of common search keys and reference data items, such as issuer name, date of filing, home Member State of the issuer, country of admission to trading, title of document, industry/branch of trade, type of regulated information and ISIN code of the securities. In addition, CESR has examined the feasibility of requiring dynamic or chain searches, multiple-country searches with a single request, the use of common input formats and standards as well as the use of common list of types of regulated information. CESR has also examined the feasibility of technical interconnection with national business registers.

Integration of the OAM network

To date, CESR has implemented a simple network model by using CESR's MiFID database on shares admitted to trading on EU regulated markets. This current network only includes the list of issuers of shares and not issuers of other securities. Integration of national OAMs would facilitate better access to regulated information on issuers having securities admitted to trading on regulated markets. According to the Commission Recommendation, the aim of such integration would especially be in ensuring that the electronic network of OAMs will be able to meet the expectations of issuers and investors in the long term, notably by providing the possibility of a virtual one-stop shop for accessing regulated information disclosed by the issuers. At the same time, the calls for enhanced transparency stemming from the financial crisis, the upcoming changes in the regulatory landscape (especially the establishment of the European Securities and Markets Authority, ESMA) and developments in other jurisdictions have made it necessary to assess the accessibility of regulated information on a wider scope.

Benefits of an integrated pan-European OAM network

For investors, an integrated network could allow easier cross-border searches for information. If information were available for searches also at the level of a Central Access Point (CAP), an investor searching for information on issuers in multiple Member States would be able to find the information with a single search instead of having to visit the websites of respective national OAMs where searches would only cover issuers of that single Member State.

For regulators, an integrated network could ease benchmarking of issuers’ filings. For example, enforcers of IFRS could benefit from easier cross-country comparisons of application of a specific accounting standard by issuers active in certain industry.

Issuers could also benefit from easier benchmarking with their competitors and an integrated pan-European OAM network could bring additional visibility for the issuers and attract new investors, which could potentially reduce the issuers' cost of capital.

CESR has identified two options to develop a more integrated OAM network.

Option 1 - a network model, which would be in line with the current linked model of the local OAMs but would gradually develop its functionalities and the common elements of the network by a “three step approach”: Step 1 would extend the list of issuers to cover issuers of all securities; Step 2 would enhance the search capabilities by requiring increased amount of metadata; and Step 3 would integrate the network by allowing multiple country searches. Step 3 could be implemented for example by harmonising search requests between the CAP and national OAMs in order to enable cross-OAM searches from the CAP, by requiring feed from national OAMs to the CAP and storing the information also at the CAP level or by building a "search engine" able to index and search all national OAMs.

This would mean that common technical standards would have to be developed amongst CESR Members and the OAM operators. The network would be implemented through a minimum harmonisation approach; distinction would be made between the basic information that would be available in all OAMs and in the Central Access Point and additional services national OAMs may want to develop.

Option 2 - a single European OAM.  Issuers of all securities admitted to trading on an EEA regulated market would need to file regulated information with the European OAM. This would require setting up a new pan-European OAM. The potential benefits of this option would be highest if large-scale development projects were expected. The downside of this option, on the other hand, is that the investments made to existing OAMs would - at least partially - be wasted.

CESR prefers Option 1, as it would allow the existence of national OAMs and therefore support the supervision of regulated information in the home Member State. CESR members also have preference for a CAP operated by CESR.

CESR invites responses to this consultation paper by 24 September 2010.

Consultation paper

© CESR - Committee of European Securities Regulators