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Voluntary Reorganisation

Non- Official Offer (NOOF2)

SFTR Report - ETRM / NEWT | Corporate Action Cluster - Return and New Trade | Cash Move - Y

Description

Offers that are not supervised or regulated by an official entity and being offered by a party, for example a broker, usually at a discount price, for example broker offer, mini-tender, mini odd lot offer or third partythird-party offer. STOCK OPTION

Best Practice

If a full or partial position is outstanding on the redemption date and confirmation from the agent of the redemption, proceeds of this should be agreed between counterparties and paid on the pay date of the event. In the event of a redemption payment being made after pay date, the lender should continue to collateralise the full loan until the redemption payment is made.

Where applicable, and if agreed between both counterparties, the redemption proceeds can be netted with any cash collateral that has been exchanged on the position previously. As with redemptions, coupon payments upon confirmation of the event should be paid on pay date of the event. (COAC-80)

Exchange (Voluntary) (EXOF2)

SFTR Report - ETRM / NEWT | Corporate Action Cluster - Return and New Trade | Cash Move - Y

Description

Always initiated by the issuer. Exchange of holdings for other securities and/or cash. The exchange can be either mandatory or voluntary involving the exchange of outstanding securities for different securities and/or cash. For example, "exchange offer", "capital reorganisation" or "funds separation".

Best Practice

If a full or partial position is outstanding on the redemption date and confirmation from the agent of the redemption, proceeds of this should be agreed between counterparties and paid on the pay date of the event. In the event of a redemption payment being made after pay date, the lender should continue to collateralise the full loan until the redemption payment is made.

Where applicable, and if agreed between both counterparties, the redemption proceeds can be netted with any cash collateral that has been exchanged on the position previously. As with redemptions, coupon payments upon confirmation of the event should be paid on pay date of the event. (COAC-79)

Odd Lot Sale Purchase by Issuer (ODLT)

SFTR Report - ETRM | Corporate Action Cluster - Full Return | Cash Move - Y

Description

Sale or purchase of odd-lots to/ from the issuing company, initiated either by the holder of the security or through an offer made by the issuer. Initiated by Issuer

Best Practice

Prior to a redemption event on a position both counterparties should seek, where agreed, to return and close out or swap the position to avoid having the asset out on loan over the redemption date.

If a position is outstanding on the redemption date and confirmation from the agent of the redemption, proceeds of this should be agreed between counterparties and paid on the pay date of the event. In the event of a redemption payment being made after pay date, the lender should continue to collateralise the loan until the redemption payment is made.

Where applicable, and if agreed between both counterparties, the redemption proceeds can be netted with any cash collateral that has been exchanged on the position previously. As with redemptions, coupon payments upon confirmation of the event should be paid on pay date of the event. (COAC-78)

Dutch Auction (DTCH)

SFTR Report - ETRM / MODI | Corporate Action Cluster - Full or Partial Return | Cash Move - Y

Description

An action by a party wishing to acquire a security. Holders of the security are invited to make an offer to sell, within a specific price range. The acquiring party will buy from the holder with lowest offer.

Best Practice

If a full or partial position is outstanding on the redemption date and confirmation from the agent of the redemption, proceeds of this should be agreed between counterparties and paid on the pay date of the event. In the event of a redemption payment being made after pay date, the lender should continue to collateralise the full loan until the redemption payment is made.

Where applicable, and if agreed between both counterparties, the redemption proceeds can be netted with any cash collateral that has been exchanged on the position previously. As with redemptions, coupon payments upon confirmation of the event should be paid on pay date of the event. (COAC-77)

Buy Back (BPUT)

SFTR Report - ETRM / MODI | Corporate Action Cluster - Full or Partial Return | Cash Move - Y

Description

Early redemption of a security at the election of the holder subject to the terms and condition of the issue with no reduction in nominal value.

Best Practice

If a full or partial position is outstanding on the redemption date and confirmation from the agent of the redemption, proceeds of this should be agreed between counterparties and paid on the pay date of the event. In the event of a redemption payment being made after pay date, the lender should continue to collateralise the full loan until the redemption payment is made.

Where applicable, and if agreed between both counterparties, the redemption proceeds can be netted with any cash collateral that has been exchanged on the position previously. As with redemptions, coupon payments upon confirmation of the event should be paid on pay date of the event. (COAC-76)

Repurchase Offer (BIDS)

SFTR Report - ETRM / MODI | Corporate Action Cluster - Full or Partial Return | Cash Move - N

Description

Repurchase offer/Issuer Bid/ Reverse Rights. Offer to existing holders by the issuing company to repurchase its own securities. The objective of the offer is to reduce the number of outstanding securities.

Best Practice

If a full or partial position is outstanding on the redemption date and confirmation from the agent of the redemption, proceeds of this should be agreed between counterparties and paid on the pay date of the event. In the event of a redemption payment being made after pay date, the lender should continue to collateralise the full loan until the redemption payment is made.

Where applicable, and if agreed between both counterparties, the redemption proceeds can be netted with any cash collateral that has been exchanged on the position previously. As with redemptions, coupon payments upon confirmation of the event should be paid on pay date of the event. (COAC-75)

Non- Official Offer (NOOF1)

SFTR Report - ETRM / MODI | Corporate Action Cluster - Full or Partial Return | Cash Move - Y

Description

Offers that are not supervised or regulated by an official entity and being offered by a party, for example a broker, usually at a discount price, for example broker offer, mini-tender, mini odd lot offer or third- partyy offer. CASH OPTION

Best Practice

If a full or partial position is outstanding on the redemption date and confirmation from the agent of the redemption, proceeds of this should be agreed between counterparties and paid on the pay date of the event. In the event of a redemption payment being made after pay date, the lender should continue to collateralise the full loan until the redemption payment is made.

Where applicable, and if agreed between both counterparties, the redemption proceeds can be netted with any cash collateral that has been exchanged on the position previously. As with redemptions, coupon payments upon confirmation of the event should be paid on pay date of the event. (COAC-74)

Priority Issue (PRIO)

SFTR Report - NEWT | Corporate Action Cluster - Addition Sec on Loan | Cash Move - Y

Description

Form of open or public offer where, due to a limited amount of securities available, priority is given to existing shareholders.

Best Practice

When booking a Priority Issue, a loan contract should be booked in addition to the current contract with your counterparty on the pay date of the event. (COAC-73)

Company Option (COOP)

SFTR Report - NEWT | Corporate Action Cluster - Addition Sec on Loan | Cash Move - Y

Description

A Company Option may be granted by the company, allowing the holder to take up shares at some future date(s) at a pre- arranged price in the company. A company may not grant options which enable the holder to take up unissued shares at a time which is five or more years from the date of the grant. Option holders are not members of a company. They are contingent creditors of a company and hence may, in some instances, be entitled to vote on and be bound by a scheme of arrangement between the creditors and the company. As many options have multiple exercise periods a company option will either lapse or carry on to the next expiry date.

Best Practice

When booking a Company Option, a loan contract should be booked in addition to the current contract with your counterparty on the pay date of the event. (COAC-72)

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