Entitlement Compensation Rules - UK

24.06.2011

Bonds

Market compensation basis:Settlement Date
Automatic Compensation Managed by Local CSD:Yes (CREST-eligible securities)
Restriction on custody events/transaction types:No restriction
Service offered by CBL:Adjustment is performed based on information received from the depository.

Equities

Market compensation basis:Trade Date
Automatic Compensation Managed by Local CSD:Yes (CREST-eligible securities)
Restriction on custody events/transaction types:No restriction
Additional information:
CREST considers stock movements to be dealt “ex” if:
-The Trade Date falls between the Ex-Date and the Record Date (the "Ex period"); or
-The Trade Date falls before the Ex period but the transaction is marked “special”.
CREST considers stock movements to be dealt “cum” if:
-The Trade Date falls before the Ex period; or
-The Trade Date falls during the Ex period but the transaction is marked “special” by the parties to it.
Proceeds of corporate actions are subject to Stamp Duty Reserve Tax under the 1.5% regime (not under the 0.5% regime). For further information, please refer to the Market Taxation Guide - UK.
Note: CBL’s depository does not process tax reclaims on compensation.
Service offered by CBL:Adjustment is performed based on information received from the depository.