KADI: Modification of announcement for corporate actions
The Clearstream Banking AG, Frankfurt1 informs customers that the modification announced by Wertpapiermitteilungen at the end of 2019 to be applied to subscription and repurchase offers is included in the scope of services provided by CBF for corporate actions (KADI) effective
Monday, 15 June 2020
Background
Wertpapiermitteilungen (WM) regularly publishes expert information (Fachinformation2) on various topics related to securities settlement. In two of last year's publications regarding corporate actions, WM announced the setup of the following values. Upon request of the German market, CBF will store this data and will take the values into account in the processing of corporate actions.
| WM characteristic | Value | Description |
| KD005 | 75 | Subscription offer without numbered subscription rights |
| UD008A | FH | Repurchase offer (Dutch Auction) |
| UD008A | FI | Repurchase offer (Odd-Lot Offer) |
CBF will announce these corporate actions via the automated connectivity channels established in ISO15022 using the message type MT564 Corporate Actions Notification3.
Implementation approach
The values available from WM for corporate actions are regularly checked by CBF and, if necessary, integrated into the application for “Kapitaldienste (KADI)”.
The new value for subscription offers without numbered subscription rights (KD005 = 75) is included in the event selection and processed with “Terminart (event code) 280”. The information is provided in the MT564 for "Non-Income Events" in field "22F: Indicator" with the qualifier for "Corporate Action Events (CAEV)" using the value "Priority offer without allocation of subscription rights (PRIO)". The current transmission rules for corporate actions, such as those for "Subscription offer without subscription rights (KD005 = 20)" or "Capital increases against non-cash without subscription rights (KD005 = 23)" are used.
The new values for repurchase offers (UD008A = FH and FI) will also be included in the event selection and will be processed with event code 280. The information will be provided in the MT564 for "Non-Income Events" in field "22F: Indicator" with the qualifier for "Corporate Action Events (CAEV)" using the values:
- DTCH = Repurchase offer - Dutch Auction;
- ODLT = Repurchase offer - Odd-Lot Offer.
The existing transmission rule for the corporate action “Bids (UD008A = FE)” are used.
In addition, CBF will add in message type MT564 Corporate Actions Notification the optional sequence D "Corporate Action Details" for the processing of the event code 281 for non-income events (UD008A = 05) regarding:
- The notification on a name change (value = DE); and
- The change in the status of the “Handelsregister (commercial register)” (value = FD).
The table below shows the future format of "Sequence D" within the MT564:
| Tag | Status | Field name | Format |
| 16R | M | Start of Block | CADETL |
| 98A | O | Effective Date | :EFFD//Ex-date of WSS-segment |
| 16S | M | End of Block | CADETL |
Potential impact on customers
Customers who have subscribed to message type MT564 and furthermore have defined in the account master data the above-mentioned event codes (280 and 281) for transmission are requested to check their systems for technical and functional changes.
After the implementation of the CBF Release on 15 June 2020, CBF can provide information on the new subscription or redemption offers, as well as the changes for name or commercial register status.
Contact
Please contact our Client Services teams for questions regarding the functionality. Questions related to the technical connection can be addressed to our Connectivity Support team. Particular questions related to corporate actions will be routed to the experts of the Asset Service team.
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1. This Announcement is published by Clearstream Banking AG (CBF), 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.
2. Further details are provided in Wertpapiermitteilungen Fachinformationen F20/2019 and F21/2019.
3. For more details please refer to CBF Connectivity Handbook Part 3.