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Broadridge / Euroclear Proxy Voting Service

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Presentation on theme: "Broadridge / Euroclear Proxy Voting Service"— Presentation transcript:

0 ACSDA General Assembly 2011 Bermuda
Taking Action on Asset Servicing ACSDA General Assembly 2011 Bermuda This information is provided for informational purposes only and should not be interpreted as legal, financial or other form of advice and no legal or business decision should be based on its content. March 25, 2011

1 Broadridge / Euroclear Proxy Voting Service
On October 5, 2010 we announced the signing of a Memorandum of Understanding that Euroclear and Broadridge planned to jointly offer end-to-end shareholder voting We were looking into forming an alliance to jointly strengthen shareholders’ governance rights by making it easier for investors to vote electronically at company general meetings When Euroclear operates the CSD, the close relationship they have with issuers and local market shareholders, coupled with Broadridge’s international reach and leading-edge voting technologies, makes for a compelling choice for voting services Through this alliance, Broadridge and Euroclear are uniquely positioned to accelerate the delivery of advanced electronic solutions to the benefit of all constituents throughout the proxy vote processing lifecycle

2 Who is Broadridge Listed in the NYSE (Ticker: BR)
Spun off from ADP in April 2007 Over $2.2 billion (USD) annual revenues* $217 million in net earnings* Over 5,000 employees worldwide Capabilities include Processing of more than $3 trillion in fixed-income and equity trades per day Securities processing capabilities for over 50 markets Distribution of over 1 billion investor communications annually Multiple language voting platforms available in approx 90 countries Complete electronic shareholder communications services for Issuers, brokers, custodians and Institutions * Fiscal year 2010

3 Broadridge’s Role in Proxy Processing
In the United States Broadridge provides proxy voting services to over 90 per cent of the beneficial market where by regulation companies must communicate with all their shareholders Internationally we provide a fully automated, electronic product supporting straight-through processing from account collection and agenda distribution through vote processing in over 100 markets Broadridge provides international proxy services to 9 of the top 10 global custody banks, in addition to another 30 custody banks and brokers The global cross-border proxy voting business is primarily institutional with over 3,000 institutional investors worldwide using Broadridge’s proprietary voting platform, ProxyEdge® Broadridge processes voting for over 30,000 non-North American meetings annually in almost 100 countries

4 Euroclear is a market infrastructure
providing clearing, settlement and issuer services Central Securities Depositary in France, the Netherlands, Belgium, the UK, Ireland, Sweden and Finland Coverage: more than 65% of Eurotop equity market capitalisation 3,900 listed issuers International Central Securities Depositary With 1,350 clients from more than 90 countries Not a traditional commercial organisation owned and governed by its client users Euroclear Finland Euroclear Sweden Euroclear UK & Ireland Euroclear Nederland Euroclear Belgium Euroclear Bank Euroclear France Employs 4,000 people

5 About Euroclear User owned and user governed
The Euroclear group comprises: The international central securities depository Euroclear Bank, based in Brussels, As well as the national central securities depositories Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. Euroclear also owns Xtrakter, operator of the TRAX trade matching and reporting system. In 2009, the Euroclear group settled the equivalent of EUR 514 trillion in securities transactions, representing 180 million domestic and cross-border transactions, and held more than EUR 20 trillion in assets for clients.

6 The Framework of European Legislation is Becoming Clearer
The Shareholder Rights Directive Establishes a more uniform framework for shareholder meetings and voting across Europe Most barriers to shareholder participation in shareholder meetings will be addressed and removed when the transposition is complete Has been transposed into law in many European markets Market Standards for General Meetings Released by the European Issuers Federation in September 2010 and endorsed to varying degrees by the full range of market participants, including banks, issuers, regulators, market infrastructure providers and investor representatives Securities Law Directive The first draft explicitly states that it is based on the recommendations in the Market Standards report The key recommendation is that the intermediaries in the chain of communications will be obliged to support the process in both directions

7 Future European landscape
Global Custodian Issuer Local Custodian CSD Investors Issuers pass on AGM notification, full agenda, agenda items and vote options CSDs transmit all information from issuers to custodians and all registrations and votes from investors to the issuers through the chain of intermediaries Local custodians and global custodians will soon have the obligation to transmit information to investors and back Securities Law Directive standard electronic format market standards the information will be channelled right from the source to all shareholders consistent information and wide reach of holders efficient process and wide participation . 7

8 Services to be Offered by the Alliance
Disseminating general meeting information Managing pre-meeting registration for shareholders (where applicable) Making available the technology to collect voting instructions from shareholders Transmitting voting instructions to issuers Performing integrity checks on voting instructions Providing vote confirmation of exercised votes Eliminating many manual procedures involved in the voting process today

9 Update on our Status Since announcing our alliance Euroclear and Broadridge have jointly met with most market participants in Euroclear markets where the support for the alliance has been very positive We will be moving forward together in Holland where we expect to be live later in 2011 We are currently analyzing the possible business model in Euroclear markets with local stakeholders Both Broadridge and Euroclear remain committed to the relationship Further developments will be communicated in due course

10 Thank You James O’Regan General Manager
Investor Communication Solutions, International 51 Mercedes Way Edgewood, NY 11717

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