Investment Funds: Swift Funds Standards Release - Dividend Option (DVOP) Event Messaging - Further information

Further to Announcement D26030, Clearstream Europe¹ informs clients of an update to the upcoming Swift Funds Standards Release, effective

30 November 2026.

Overview

Following client feedback and the latest guidance from the Securities Market Practice Group (SMPG), Clearstream Europe will proceed with the planned change to Dividend Option event processing, however adapting the implementation from DVOP MAND to DVOP CHOS.

This adjustment reflects the evolving market practice and Clearstream Europe’s commitment to responding swiftly to industry and client needs. By implementing DVOP CHOS for eligible investment fund dividend distributions, Clearstream Europe aligns with current market processing capabilities while maintaining service continuity and delivering the intended enhancement.

Key points and impact on clients

1. Adoption of DVOP CHOS:
   Where an underlying investment fund offers a dividend reinvestment option (Cash versus Securities), the corporate action notification (MT564) and confirmation (MT566) will be announced under event type DVOP with option code CHOS (Choice), replacing the previously announced event type DVOP with option code MAND format.
2. Functionality and processing retained:
   Full dividend reinvestment service functionality remains active and unchanged.
3. No event-level instructions accepted:
   While both Cash (CASH) and Securities Reinvestment (SECU) options will be displayed in the MT564 notification for transparency, clients will not be able to submit corporate action election instructions at event level. Distributions and reinvestments will continue to be governed automatically by the account profile and pre-established standing instruction maintained with Clearstream Europe. Any instruction submitted will be rejected by Clearstream Europe. Any instruction submitted will be rejected.
4. Cash-only distributions (DVCA):
   Regular fund dividend payments that do not offer a reinvestment option will continue to be announced and processed strictly as Dividend Cash (DVCA).
5. Service availability:
   The securities reinvestment service remains available for Clearstream Banking S.A. (CBL) clients holding designated reinvestment accounts. For accounts not configured for reinvestment, distributions will be settled in cash by default.

Testing and message samples

Clearstream Europe is updating sample MT564 and MT566 test messages to reflect the DVOP CHOS format. Updated samples will be provided to clients shortly.

Recommendations for clients

• Update internal systems and rule sets to expect DVOP CHOS instead of DVOP MAND for fund reinvestment events starting on the effective date.
• Confirm that automated processing workflows do not generate or expect outgoing corporate action instructions for these events.

Review MT564 / MT566 ingestion rules for compatibility with the DVOP CHOS structure.

Further information

Clients with questions regarding the impact of this change on their business processes should contact their usual Relationship Manager.

Relationship Managers will be supported by Clearstream Europe product specialists and operational teams to address client-specific questions and assess potential impacts.

Operational queries may also continue to be directed to Vestima Client Services.

For further information, please contact as appropriate:

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1. This Announcement is published by Clearstream Europe AG (CEU), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, registered with the Commercial Register of the District Court in Frankfurt am Main, Germany, under number HRB 7500.