Search

ISLA logo

Dividend Reinvestment (DRIP)

Dividend Reinvestment (DRIP)

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

Status: Best Practice Finalised, Last Updated: 24/05/2021

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

Description:
Dividend payment where holders can keep cash or have the cash reinvested in the market by the issuer into additional shares in the issuing company. To be distinguished from DVOP as the company invests the dividend in the market rather than creating new share capital in exchange for the dividend.

Best Practice:
When booking a Dividend Reinvestment, a loan contract should be booked in addition to the current contract with your counterparty on the pay date of the event. (COAC-59)

Close

Creating your PDF, please wait.

PDF created successfully.

Sorry, your PDF could not be created at this time.

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