Share trading How technology provides certainty to share plan participants


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Share trading How technology provides certainty to share plan participants

  1. 1. Share Trading – How Technology ProvidesCertainty to Share Plan ParticipantsAnna Macfarlane, Head of Dealing at ComputershareDominic Newby, Client Relationship Director at Computershareifs ProShare Employee Share Plans Conference 201210th October 2012
  2. 2. Agenda › The old world of employee plan trading › What’s causing the change? › Benefits of technology › The challenges › To summarise › What the future may hold?2
  3. 3. Once upon a time...3
  4. 4. I wonder if my trade was placed?4
  5. 5. Old Trading Timescales› -2 days Sale / exercise form put in post› Trade Date Shares sold›T+2 Contract note / confirmation letter sent by post›T+3 Employee received confirmation of trade›T+5 Administrator receives sale proceeds›T+5 Sale proceeds released to employee by cheque›T+7 Employee receives cheque› T + 10 Employee manages to get to bank› T + 13 Proceeds clear into employees personal account
  6. 6. Current Trading Timescales› Trade Date Employee initiates sale instruction online› Trade Date Shares sold› Trade Date Employee e-mailed confirmation of trade going to market› Trade Date Employee e-mailed confirmation of trade fill› T+1 Contract note available online› T+1 BACS / International payment initiated› T+3 Administrator receives sale proceeds› T+3 Sale proceeds received by employee (UK and most international jurisdictions)
  7. 7. Vote NowHow regularly do you undertake transactions online(banking, shopping etc)?1. Daily 25%2. Weekly 25%3. Monthly 25%4. Never 25%
  8. 8. Vote NowWhen did you start to regularly use the internet tobank, shop etc?1. In the last two years 20%2. In the last two to five years 20%3. In the last five to ten years 20%4. More than ten years 20%5. Never 20%
  9. 9. Changing Attitudes to the Internet9
  10. 10. Benefits to Share Plan Participants› Control› Certainty› Flexibility› Transparency
  11. 11. Vote NowWhat % of trades received in real time are limitorders?1. Up to 10% 25%2. 10% to 25% 25%3. 25% to 50% 25%4. 50%+ 25%
  12. 12. Vote NowSpeed of trade fulfilment - How long typicallybetween trade receipt and fill?1. Under five seconds 25%2. Five to ten seconds 25%3. Ten to twenty seconds 25%4. Over twenty seconds 25%
  13. 13. Benefits to Employers and Administrators› Reduced Processing Risk› Reduced HR/Co Sec Resource Requirement› Certainty› Transparency› Efficient and Accurate Tax Calculations
  14. 14. Challenges for Administrators› Technology Investment› Global Payments› Resources/Timezones› Regulation
  15. 15. Regulatory Environment
  16. 16. To Summarise › Choice of when to trade › Choice to choose their acceptable price › Comfort that price is checked vs. market › Confirmation of trade placed into market and when filled › Quick access to proceeds to their personal account either in UK or internationally › Access to required contract notes from trades for past 10 years16
  17. 17. What the future may hold › Dematerialisation › Shorter settlement › More regulation › An App › Tax withholding accuracy17