Securities administration - UK


Income collection

Equities and corporate bonds
Market Record dateSet by the registrar, usually 3 to 4 weeks before Payment date
Ex-dateSet by the SE, usually Record date +2 weeks
Basis for entitlementRecord date
Standard interest calculation ruleEquities: Not applicable; corporate bonds: Actual/Actual
Market Record dateUsually Payment date -7 days
Ex-dateUsually Record date +7 days
Basis for entitlementTrade date
Standard interest calculation ruleActual/Actual

Corporate actions

Most common corporate events

The most common events in the UK market are cash stock options (drips, scrips), rights issues / subscriptions, bonuses, takeovers / mergers, splits / reverse splits.

Organisation of AGM/EGMs

There are no rules or peak season for AGM. Local companies are not required to publish or announce AGM.

Other market specific

Shares are blocked during the voting period.

Corporate events with rights issues

All transactions that have not settled by the market deadline will be deemed to have been transformed; that is, if the counterparty cannot deliver the rights to the buying customer on time, CREST will automatically exchange the rights into shares and will adjust the cash amounts accordingly.

If the transaction matches up to one day before the deadline, the rights sold will be protected; that is, CREST will automatically exercise the rights to be delivered to the counterparty. In its turn, the recepient will redeliver the cash for the subscription cost and the trade consideration of the rights.

If the transaction matches on or after the deadline, CREST will not be able to exercise the rights. However CREST will in any case deliver the corresponding number of shares to the counterparty against the subscription cost and the trade consideration but the rights that have lapsed will be indemnified and credited to the seller. In this case, as the shares have not been subscribed for, the seller has sold the shares from his own holding. To cover this position, the seller has the subscription costs and the proceeds of the lapsed rights to buy the shares on the market.