Search

ISLA logo

Pari Passu (PARI)

Pari Passu (PARI)

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

Description

Occurs when securities with different characteristics, for example, shares with different entitlements to dividend or voting rights, become identical in all respects, for example, pari-passu or assimilation. May be scheduled in advance, for example, shares resulting from a bonus may become fungible after a pre-set period of time, or may result from outside events, for example, merger, reorganisation, issue of supplementary tranches, etc.

Best Practice

When booking a Pari Passu the original contract of the loan should be terminated, and a new contract posted. (COAC-56)

Close

Already a member? Login to your account

Interested in Becoming a Member?

ISLA’s members span the breadth and depth of the securities lending industry, and there are many benefits of joining the Association’s network.

Become a member today