Corporate Action Clusters

Information Only

Status: Best Practice Finalised, Last Updated: 28/01/2022

Description:
The following corporate actions require are non-economic or information updates only.

ACCU - Accumulation
ACTV - Active Trading Status
BMET - Bond Holder Meeting
BRUP - Bankruptcy
CAPI - Capitalisation
CERT - Non USTEFRAD Certification
CHAN1 - Change
CLSA - Class Action Proposed Settlement
CMET - Court Meeting
CONS - Consent
CREV - Credit Event
DLST - Trading Status Delisted
DSCL - Disclosure
EXTM - Maturity Extension
INCR - Increase in Value
MEET - General Meeting
MTNG - Securities Holders Meeting
OMET - Ordinary General Meeting
OTHR - Other Event
PLAC - Place of Incorporation
REDO - Redenomination
REMK - Remarketing Agreement
SMAL - Smallest Negotiable Unit
SUSP - Trading Status Suspended
TNDP - Tax on Non-Distributed Proceeds
TREC - Tax Reclaim
WTRC - Withholding Tax Relief Certification
XMET - Extraordinary or Special General Meeting.

Best Practice:
None of the Information Only cluster Corporate Actions (CA), require changing an existing SFT booking or necessitate a new SFT booking. None of these CAs will require a new SFT booking, and therefore will not entail UTI generation etc.

As the value of the security on loan may change, collateral will move to reflect the new value. This will be reported via the daily Collateral Update (COLU) report. (COAC-118)

Economic outside of SFT

Status: Best Practice Finalised, Last Updated: 28/01/2022

Description:
The following corporate actions are economic but take place outside of the SFT.

CAPD - Capital Distribution
CAPG - Capital Gains Distribution
DECR - Decrease in Value
DRCA - Cash Distribution from Non-Eligible Securities Sale
DVCA - Cash Dividend
DVOP1 - Dividend Option
INTR - Interest Payment
PPMT - Instalment Call
PRED - Partial Redemption With Pool Factor Reduction
PRII - Interest Payment With Principal
SHPR - Shares Premium Dividend

Best Practice:
All of the events within this cluster of Corporate Actions (CA), require a cash payment which does not affect the existing SFT.

None of these CAs will require a new SFT booking, and therefore will not entail UTI generation as the value of the security on loan may change, collateral will move to reflect the new value. This will be reported via the daily COLU report. (COAC-117)

Full or Partial Return

Status: Best Practice Finalised, Last Updated: 28/01/2022

Description:
The following corporate actions require a full or partial return.

NOOF1 - Non-Official Offer
BIDS - Repurchase Offer
BPUT - Buy Back
DRAW - Drawing
DTCH - Dutch Auction
PCAL - Partial Redemption Without Pool Factor Reduction
PDEF - Prefunding
TEND1 - Tender
TEND2 - Takeover for Shares

Best Practice:
All events that which require a full or partial return will require full closing out (reported via an ETRM) or partial close out of an SFT (reported via a MODI).

None of the events in this cluster of Corporate Actions (CA) will necessitate a new SFT booking. Some of these CAs will require an exchange or reduction of the collateral, if the collateral security is the subject of the CA. These will be reported via the daily COLU report. (COAC-120)

Additional Security on loan

Status: Best Practice Finalised, Last Updated: 28/01/2022

Description:
The following corporate actions require an additional security on loan.

ATaTI2 - Attachment
BONU - Bonus Issue
COOP - Company Option
DRIP - Dividend Reinvestment
DVOP2 - Dividend Option
DVSC - Scrip Dividend
DVSE - Stock Dividend
LIQU - Liquidation Dividend
PINK - Pay In Kind
PRIO - Priority Issue
RHDI - Intermediate Securities Distribution
RHTS - Rights Issue
SOFF - Spin Off

Best Practice:
All events within this cluster require a new SFT to be booked, in addition to the existing trade, which is reported under a NEWT template.

Some of these Corporate Actions may trigger a resulting value change of the SFT - these will be reported via the daily COLU report. (COAC-128)

Return and New Trade

Status: Best Practice Finalised, Last Updated: 28/01/2022

Description:
The following corporate actions require a full return and new trade booked.

DETI - Detachment
EXOF1 - Exchange
EXOF2 - Exchange (Voluntary)
EXRI - Call on Intermediate Securities
EXWA - Warrant Exercise
MRGR - Merger
NOOF2 - Non-Official Offer
PARI - Pari Passu
SPLF - Stock Split
SPLR - Reverse Stock Split

Best Practice:
All events within this cluster require either:

• Full closing out of an SFT to be reported via an ETRM

• Partial close out of an SFT to be reported via a MODI

• A new SFT to be booked in addition to the existing trade, which is reported under a NEWT template

• Some of these corporate actions may trigger a resulting value change of the SFT (these will be reported via the daily COLU report) (COAC-119)