Transparency in the investment industry requires the disclosure of beneficial ownership of institutional investors.
In trying to understand the systemic risk that asset managers play in the overall markets, regulators around the world have mandated market participants to make shareholding disclosures.
These disclosures are on participants' holdings of instruments that have a “similar economic effect” to equities when they accumulate a substantial shareholding in an entity, invest in a protected industry, become involved in a takeover bid or engage in short selling.
Complexity in rules
The challenge with these types of disclosures is the granularity of data required to understand how much influence an institutional investor has on any particular company, based on the share capital and voting rights they own.
These calculations can come from a lot of different, granular data.
Whilst the overall aims of disclosure are the same, jurisdictional nuances – such as the Markets in Financial Instruments Directive (MiFID) within Europe – mean there are differences in interpretation and approach.
Shareholding disclosure regulations are both ubiquitous and heterogeneous. This creates a challenge for individuals and institutions holding shares across multiple jurisdictions, namely:
- unique reporting rules
- frequency of reporting
- format of disclosure
- the types of data that will need to be included.
Buy-side and sell-side institutions therefore need to continually monitor changes in their shareholdings and compare these with the disclosure triggers specified by local regulators.
Answer the reporting challenge
We can help with these shareholding disclosure requirements by allowing you to meet the data, legal and software challenges presented by globally diverse regulations, such as major, short, takeover and industry-specific disclosure rules.
Using our data, you can easily monitor your positions by providing an accurate denominator, and ensure full transparency.
Thomson Reuters data for shareholding disclosure includes:
- 15 different types of total shares and total voting rights
- over 150 reliable sources
- regular filings from over 60,000 listed companies
- coverage of 99 nations
Mitigate risk through trusted reference data
For shareholding disclosure, you can access the reference data and analytics required to support the following disclosures and more:
- industry classifications
- market segment identifiers
- underlying asset details and ratios for derivatives and depository receipts
- underlying/instrument/issuer hierarchies
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Reference data refers to static or dynamic data to help classify financial instruments. Thomson Reuters is an originator, consolidator and value-add re-distributor of security and financial instrument data with hundreds of sources and partners.
Thomson Reuters Risk and Regulatory Data allows you to support clients affected by a wide range of banking regulations and report on financial risk exposure with greater ease, efficiency, and timeliness.