Securities administration - UK
Income collection
| Equities and corporate bonds | |
| Market Record date | Set by the registrar, usually 3 to 4 weeks before Payment date |
| Ex-date | Set by the SE, usually Record date +2 weeks |
| Basis for entitlement | Record date |
| Standard interest calculation rule | Equities: Not applicable; corporate bonds: Actual/Actual |
| Gilts | |
| Market Record date | Usually Payment date -7 days |
| Ex-date | Usually Record date +7 days |
| Basis for entitlement | Trade date |
| Standard interest calculation rule | Actual/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.