Education • RNS Definition: What Does Regulatory News Service Meaning
The definition of RNS (RNS Meaning) is crucial to know if you are involved in any type of forex trading. There are many terms and phrases that every forex trader should know about, and RNS is one of them. When used correctly, the RNS can help you understand the markets better.
But what does RNS mean?
How does it help in your trading strategy?
In this article, we discuss it all.
RNS definition stands for Regulatory News Service. This is the official news provider that is directly under the Financial Conduct Authority (FCA). The service is responsible for sharing regulatory and non-regulatory information about publicly listed UK companies and businesses.
Moreover, the Regulatory News Service acts as a part of the London Stock Exchange (LSE) and provides the necessary information to the parties in need to ensure that they are true to their disclosure obligations.
The Regulatory News Service takes it upon itself to publish important information like share issues, board of director changes, and company performance. With information such as these provided by the RNS, traders and business owners can then proceed to make insightful decisions that align with government regulations.
Furthermore, the information stated on the Regulatory News Service has a large influence on the markets like stock and forex. So, keeping up with the RNS news is vital to becoming a better trader.
As the RNS definition suggests, regulatory news is the main focus of this service. So keeping a constant eye on what's being shared is a good way to avoid any unwanted and unexpected new regulations.
Further, Regulatory News Service is the origin place for most of the regulatory and price-sensitive UK company information. This service also operates 24/7, and that allows traders to keep themselves updated at any time of the day.
Launched in 1988 to replace the Company News Service (CNS), Regulatory News Service quickly became the official news outlet of the London stock market.
Back in the day when CNS was in charge, they used full-text reports to share news and new announcements. But after the replacement of CNS for Regulatory News Service, they used more elaborate ways to convey messages of both regulatory and financial announcements.
The service started with just sharing regulatory news. But after a while, the Regulatory News Service decided to share regulatory, non-regulatory, and financial announcements for UK-listed and AIM-listed companies. This allowed the RNS to quickly rise to the top and become a globally recognized provider of regulatory news.
As the RNS definition suggests, sharing news is the gist of what they do. Therefore, the news originating from the RNS tends to get published in over two million terminals, databases, and financial websites around the world currently.
This vast reach of RNS has allowed companies to share their news and announcements quickly and on a larger scale. In addition, this provides a platform for individuals to get vital information on UK companies.
The role of Regulatory News Service is a bit complex and deep subject and goes further than what meets the eye.
First and foremost, the Regulatory News Service helps international financial companies and firms comply with the EU transparency directive. Further, this, in turn, demands companies to disclose information about their activities, announcements, and new developments constantly through various means.
While doing this information disclosure, companies must share their annual and half-yearly financial reports and management statements. As a result, this helps to push financial transparency and consistency of the financial institutes within the EU.
In addition, this also includes 20-digit alphanumeric Legal Entity Identifiers (LEIs). This code provides a way for companies to identify legal entities that are participating in financial transactions.
Because the RSE is owned by the LSE(London Stock Exchange), providing accurate market information is a must. In the beginning, this was carried out as a paper bulletin twice a week. As of now, this has upgraded into a flow of electronic messages that exceeds 1000 announcements per day. This leads Regulatory News Service to deliver over 300 000 announcements per year.
The RNS definition and the way they provide services was established as their own service back in 1988. With this establishment came a new digital submission method as the Direct Input Provider (DIP).
This allows financial institutes to deliver announcements via Regulatory News Service electronically to be conveyed to the masses. Currently, RNS provides multiple ways for companies to deliver their messages to their target audience.
Most of the customer base of the Regulatory News Service originates from financial institutes that are on the UK exchange’s list. Some of them are companies like,
Moreover, companies and financial institutes have the freedom to use the Regulatory News Service to develop relations and communicate with European and American investors.
To do this, the party who is willing must use the major financial news networks which are available within the RNS definition. In addition to the above-mentioned parties, regulators and corporate advisors can also make good use of the RNS service.
To see what the RNS is posting, interested parties will have to access its announcements. While there is no definitive location that the companies can visit to get the information, there are a few easy sources where anyone can get direct access to the Regulatory News Service news and announcements.
They are
The London Stock Exchange’s website
This is the official website of the London Stock Exchange. Here, anyone interested can gain free access to the RNS and its information.
Investegate
This is a dedicated website that aims to offer comprehensive and timely details of regulatory and non-regulatory announcements. This is a free third-party service, but the news from Regulatory News Service gets frequently delayed.
SharePad
This is a platform that anyone can access to get in-depth data on most of the financial markets within the UK. Even though this provides accurate and timely news from the RNS, this is a paid service. You can get started with SharePad with a free one-month trial.
Since you are aware of the RNS definition as of now, understanding why the RNS is important to investors is not so hard.
With the help of Regulatory News Service, traders, investors, and financial institutes can make better decisions with a good understanding of the current, past, and future state of the market. The insights and the information that comes with the RNS are valuable for any type of investor, regardless of their experience level.
One of the biggest benefits of using RNS is the ability to create more informed strategies that are market compatible. With the information RNS provides, traders can get a good idea about the assets, shares, and market direction and devise strategies accordingly.
Besides that, having a stream of accurate and up-to-date market information is never a bad thing. When an investor or a financial institute has their hand on such information, it allows them to easily stay a step ahead of their competition.
In addition, the information and news provided by the RNS are available 24/7. This allows investors from all over the world to access this information whenever they require it. The flexibility of this aspect of the RNS allows traders to be more efficient with their decisions.
The influence the RNS has over the financial market is a bit difficult to explain.
At the core, what the RNS do is share the information that comes their way. This information is what investors, institutes, firms, and traders can use to make their financial decisions.
While this might not seem like something massive, it goes far beyond that.
If taken individually, the ones who use the information from the RNS do it with the thought of appealing to the market, thus raising their profit-making chances. But if we take all of these parties and look at them from a collective point of view, they make up a large sector of the market.
As the RNS definition suggests, the primary goal of this service is to share important news among its user base. This includes things like stock prices, company results, market performance, and staff changes, which are all capable of influencing the market. While this information has a minimal effect on the bias of investors and traders, it can influence their actions.
Making decisions without a firm grasp of the market conditions can have negative effects on the outcome. Because of this, investors and traders pay close attention to the RNS to get an edge in their trades.
For instance, if the RNS informs about a performance drop in a company, shareholding investors will take action to sell their shares. If the RNS did not inform such an event, investors won't know what hit them. This explains the complex influence that the RNS has over the market and its future cause of action.
Fundamental and technical analysis are tools that are capable of raising the profitability of any trader who uses them. Before understanding how you can use RNS in fundamental and technical analysis, let’s look at what these two analyses are.
The fundamental analysis mainly considers aspects like financial statements, market developments, and news. On the other hand, technical analysis focuses more on past and present price movements to predict future price movements.
Information you obtain through fundamental and technical analysis helps you identify market trends and make suitable decisions.
In simple words, these analysis methods can allow traders a level of insight that is not available in any other way. So for traders who use either technical or fundamental analysis, this can open a whole new field of opportunities.
Any successful trader or investor will tell you that the proper usage of these analysis methods is a must in this field.
Just as the RNS definition states, it is where the regulatory news is mainly shared; at the same time, it has a significant influence on the market price. Thus RNS is considered a vital part of the analysis process.
The RNS Reach service is primarily based on the existing RNS UK-Regulatory service and offers the same level of efficiency. The investor communication service focuses on assisting listed and unlisted companies to deliver non-regulatory news. These can include things like corporate information, product information, marketing messages, and announcements.
With the help of Reach, even foreign-listed companies get the opportunity to share their news with the UK populace. Everything that is directed to Reach is primarily on the Market News section of the London Stock Exchange corporate website. With this service, companies can share announcements such as,
Regulatory news service is the RNS definition. This service aims to share all regulatory and non-regulatory information about publicly listed UK companies.
Regulatory news service is the RNS definition. This service aims to share all regulatory and non-regulatory information about publicly listed UK companies.
Publicly listed companies and financial listed institutes in the UK can use the RNS to share news, director changes, and company performances. Any of these instances fall under the RNS announcements.
Information is key in a field where your finances are on the line. To ensure your financial security, you will have to make educated decisions within the market. This is where the RNS comes in.
Having a proper insight into the market, its news, and new development is a great way to stay one step ahead every time. With the information gained by RNS, traders and investors alike can make much more profitable trade decisions. So, make sure to get the most use of RNS and the information it provides to get better at adapting to the market.
We hope this article will give you a clear idea about the definition of RNS and how it influences the market, and how you can use it to improve your trades.