Implementation of new corporate action events and option types - update
Note: This announcement, originally published on 21 December 2021, has been updated to add cutover related information. Changes have been highlighted.
LuxCSD1 is pleased to inform customers that new corporate action events and option types will be available from
13 June 2022
Impacted Event and Option Types
A list of all currently supported Corporate Action Event Indicator (CAEV), details is available in the Xact via SWIFT User Guide and in the Customer Handbook.
From 13 June 2022, the following event types, if supported in a given market, will be sent to customers via an MT564 Corporate Action Notification:
Event Type | Event Description | Option Types |
BONU CHOS | Bonus issue, mandatory with choice | CASH, SECU |
CONV MAND | Conversion of securities, mandatory | SECU |
TREC VOLU | Tax Reclaim, voluntary | CASH, NOAC |
In addition, the following new option types will be available or will replace the currently available option types:
Event type | Event description | Option types - current | Option types new - as of 13June 2022 |
DECR MAND | Decrease in value (share) | CASH | CASH or no option |
LIQU MAND | Liquidation | CASH | CASH, SECU, CASE |
TEND MAND | Tender Offer/Purchase Offer – Mandatory | CASH | CASH, SECU, CASE |
TEND VOLU | Tender Offer/Purchase Offer - Voluntary | ABST, CASH, CONN, CONY, CTEN, SECU, NOAC | ABST, CASE, CASH, CONN, CONY, CTEN, SECU, NOAC |
WRTH MAND | Worthless – Mandatory | SECU | LAPS |
WTRC VOLU | Withholding Tax Reclaim Certification | OTHR, NOAC | BOBD, NOAC |
Impact on customers
LuxCSD customers are kindly requested to ensure their readiness to support the new events and option types for corporate actions messages: MT564, MT565, MT567 and MT566.
Cutover activities – Reporting subscription
For the existing subscriptions, Clearstream Banking will apply the following rules:
- For reporting schedules where all event types are selected (that is, there is no filtering on CAEV) the new events are automatically included. In this case, no action is required from customers to receive the new event types.
- For reporting schedules where a particular list of events has been selected, the new event types are not added. In this case, the original selection is maintained. Customers are recommended to update their subscriptions if they want to receive the new events.
Background
In the frame of its continuous improvement to comply with the Securities Market Practice Group (SMPG) standards and anticipating in the future SCoRE2 Corporate Actions standards and ECMS3 implementation, LuxCSD will support new corporate action events and option types.
The June 2022 implementation is the first part of LuxCSD’s ongoing corporate actions harmonisation to enhance the OneClearstream service offering.
As a next step, in October 2022, corporate actions processing for the German market will be migrated to the OneClearstream asset servicing service level and additional changes will be implemented to the processing of corporate actions for other markets.
With the ECMS launch in November 2023 LuxCSD will implement remaining changes to comply with the SCoRE Corporate Actions standards and to connect to ECMS. Customers will have a choice between ISO15022 and ISO20022 corporate action messages with new reports and reporting options.
More detailed information will be provided in due course.
Further information
For further information, customers may contact LuxCSD Client Services or their Relationship Officer.
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1. LuxCSD refers to LuxCSD S.A., registered office at 42, Avenue J.F. Kennedy, L-1855 Luxembourg, registered with the Luxembourg Trade and Companies Register under number B-154.449.
2. The Single Collateral Management Rulebook for Europe (SCoRE) Standards was announced in 2017 by the Advisory Group for Market Infrastructure for Securities and Collateral (AMI-SeCo). This initiative aims to harmonise ten functional areas within Collateral Management, Asset Services and Billing.
3. The Eurosystem Collateral Management System (ECMS) is a unified system for managing assets used as collateral in Eurosystem credit operations. Its launch is planned for November 2023.