Economic outside of SFT

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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)