Corpo Actions

ISO 20022 > Corporate Actions

ISO 15022 > Corporate Actions

Type of Events:

1. Benefits

   1. Payment of Interest Due: Coupon or coupon with capital (amortized coupon)

   2. Payment of Income Earned: Earnings to equity holders (cash, securities, or scrip)

   3. Distributions of Capital Reserves

      1. Liquidation Distribution

      2. Bonus Issue (mandatory)

2. Re-Organizations

   1. Equity Restructuring

      1. Change in Security Ranking (or assimilation)

      2. Share Split

      3. Consolidation

      4. Scheme Of Arrangement

      5. Capital Repayment

      6. Buy-Back (voluntary repurchase offer or tender offer)

      7. Odd Lot Offer

      8. Warrant Exercise

   2. Debt Restructuring

      1. Bond & Note Conversion

   3. Debt Redemption (final bond maturity, partial redemption/call, early redemption, voluntary redemption or put call, drawing/lottery)

   4. Capital Raise

      1. Rights Issue

      2. Entitlement Issue

      3. Priority Issue

      4. Equity/Instalment Call

   5. Company Structure Re-Organization

      1. Merger

      2. Spin-Off

      3. Takeover/Acquisition/Tender

3. Issuer Notices

   1. Issuer Meetings With Proxy Voting

   2. Information Only (e.g. name change)

Source: Chapter from Corporate Actions (a guide to securities event management)

Rights Distribution: 1) Mandatory Event, 2) Voluntary Event

Bankruptcy Stages: 1) Initial Bankruptcy Filing (mandatory, information-only), 2) Plan of Reorganization (voluntary), 3) Final Liquidation (mandatory)

Name Change: 1) New CUSIP, same name, 2) Same CUSIP, new name, 3) New CUSIP, new name

Tender & Exchange Offers: 1) Cash for principal payment, 2) Cash movement for consent fee, 3) Cash movement for accrued interest

Automatic Dividend Reinvestments: Some Unit Investment Trust Instruments automatically reinvest proceeds (DRIP or DRP).

Source: Corporate Actions Market Practice 6.0, ISITC Corporate Actions Working Group, November 2016. 

MS Distribution Type (Code)

• Cash Dividend (CD)

• Special Cash Dividend (SC)

• Stock Split (SS)

• Stock Dividend (SD)

• Spinoff (SP)

• Rights Issue (RI)

MS Delisting Reason

• Acquired: Acquired by another company and delisted from exchange

• Assimilation: Usually when a non pari-passu secondary share merges into the original share; the secondary share is exchanged for the original share with equal rights.

• Conversion/Exercise: Conversion of preference shares or excise of warrant

• Privatization: The transition from a publicly traded and owned company to a company which is privately owned and no longer trades publicly on a stock exchange.

• Dissolution of Company: Liquidation, Bankruptcy of company

• Redemption: Redeemed shares

• Matured: When a bond or derivative reaches its maturity date.

• Other events

• Consolidation/Exchange: Reclassification of A and B share into common shares, consolidate/exchange of preferred shares

Source: advisor.morningstar.com/Enterprise/VTC/DataDefinitions-AppendixA.xlsx

Note: Dividend Frequency can be Annual = 1, Semi-Annual = 2, Quarterly = 4 or Monthly = 12