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Odd Lot Sale Purchase by Issuer (ODLT)

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)

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