Partial Redemption wWith Pool Factor Reduction (PRED)
SFTR Report - NONE | Corporate Action Cluster - Economic outside SFT | Cash Move - Y
Securities are redeemed in part before their scheduled final maturity date without reduction of the nominal value of the securities. This is commonly done by pool factor reduction.
For cash payments which do not affect the open SFT, the beneficial counterparty is contractually due payment in full on pay date. If payment is not received, counterparties should raise a query on pay date + 1.
A claim needs to submitted via email as soon as possible after announcement date in order for a payment to be made, the minimum field list for claims can be found here. ]
If payments are not made on pay date the recipient counterparty should provide a valid reason for non-payment.
In addition to reviewing Contract Compare prior to and on pay date, Contract Compare should be checked on pay date+1 to ensure newly created positions are reconciled. Any differences need to be escalated to counterparties immediately. (COAC-42)
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