Implementation of new corporate action events and option types - update

17.05.2022

Note: This announcement, originally published on 21 December 2021, has been updated to add cutover related information. Changes have been highlighted.

Clearstream Bankingis 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 relevant 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

CBL and OneClearstream CBF 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, Clearstream Banking will support new corporate action events and option types.

The June 2022 implementation is the first part of Clearstream Banking’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 Clearstream 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 Clearstream Banking Client Services or their Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.

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.