French Market Practices in the context of the European Market Standards for Corporate Actions processing - V1.0 23/10/2014
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Référence Document Version Date
MP Description 1.0 23/10/2014
French Market Practices
French Market Practices in the context of the
European Market Standards for Corporate Actions
processing
V1.0
23/10/2014
Page 1 / 94
Référence Document Version Date
MP Description 1.0 23/10/2014
French Market Practices
Summary
1. Presentation ..................................................................................................................................................... 5
1.1. Context ..................................................................................................................................................... 5
1.2. Purpose ..................................................................................................................................................... 5
1.3. Perimeter .................................................................................................................................................. 6
1.4. Specific cases .......................................................................................................................................... 6
1.5. Limits .......................................................................................................................................................... 7
1.6. Terms ......................................................................................................................................................... 7
1.7. How to use this document .................................................................................................................... 7
2. Matches matrix ................................................................................................................................................ 9
2.1. Securities distribution (without options) .............................................................................................. 9
2.3. Mandatory reorganizations (without options) ................................................................................ 11
3. Functional Cases ........................................................................................................................................... 13
3.1. Securities distribution (without options) ............................................................................................ 14
3.1.1. Securities distribution bonus issue ...................................................................................................... 15
3.1.2. Dividend paid in equities .................................................................................................................... 16
3.1.3. Interest payment in securities ............................................................................................................. 17
3.1.4. Spin Off ................................................................................................................................................... 18
3.2. Mandatory reorganisations (without options)................................................................................. 19
3.2.1. Securities Attachment ......................................................................................................................... 20
3.2.2. Squeeze out ........................................................................................................................................... 21
3.2.3. Mandatory change of securities form (bearer to registered) ..................................................... 22
3.2.4. Mandatory Conversion of former securities for new securities at the initiative of the issuer . 23
3.2.5. Dissociation of a former security in new securities ......................................................................... 24
3.2.6. Drawing of securities for a later redemption (lottery) ................................................................... 25
3.2.7. Exchange ............................................................................................................................................... 26
3.2.8. liquidation against securities or cash ................................................................................................ 27
3.2.9. Merger .................................................................................................................................................... 28
3.2.10. ISIN codes merger in case of fungible securities ............................................................................ 29
3.2.11. Issuing currency redenomination with isin code change ............................................................ 30
3.2.12. Allocation of new securities different from former securities, from the same issuer or from a
different issuer ................................................................................................................................................ 31
3.2.13. Stock Split / division of securities value ............................................................................................. 32
3.2.14. Reverse stock split for increase of the securities nominal value .................................................. 33
3.2.15. Booking out of valueless securities .................................................................................................... 34
3.2.16. Booking out of valueless certificates ................................................................................................ 35
3.2.17. Warrant exercise ................................................................................................................................... 36
3.2.18. Early redemption of securities ............................................................................................................ 37
3.2.19. Partial redemption without reduction of nominal value .............................................................. 38
3.2.20. Partial redemption with reduction of nominal value .................................................................... 39
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3.2.21. Total redemption of a security at final maturity ............................................................................. 40
4. Market Practices ........................................................................................................................................... 41
4.1. Fraction processing .............................................................................................................................. 41
4.2. Ratio announcement and fraction calculation ............................................................................. 42
4.3. Fractions processing if registered ...................................................................................................... 43
4.4. CA on flows processing on registered securities ............................................................................ 44
4.5. Legal form of new securities ............................................................................................................... 45
4.6. “BRN” processing date regarding corporate action .................................................................... 46
4.7. Language of the narrative ................................................................................................................. 47
4.8. No regrouping of fractions .................................................................................................................. 48
4.9. Cut off for green light on the proceeds credit ............................................................................... 49
4.10. Ex-date - new securities distribution .............................................................................................. 50
4.11. Last-Trading date – new securities registration ........................................................................... 51
4.12. Fractions compensation in mixed method ................................................................................. 52
4.13. Portfolio transfers ............................................................................................................................... 53
4.14. CA Form field “Disposition of fraction” ......................................................................................... 54
4.15. Reference price transmission in operations treated with Top Down method ...................... 55
4.16. Request for listing suspension before a draw record date ...................................................... 56
4.17. Fractions processing “pur PEA” ...................................................................................................... 57
5. Forms and files ............................................................................................................................................... 58
5.1. Fractions transmission form in mixed method ................................................................................. 58
6. Annexes .......................................................................................................................................................... 59
6.1. Annex 1: Fraction calculation synthesis V1.0................................................................................... 59
6.1.1. Présentation ........................................................................................................................................... 59
6.1.2. Synthèse ................................................................................................................................................. 59
6.1.3. Origine et description de la méthode « Top Down » .................................................................... 60
6.1.4. Focus sur l’application de la méthode Mixte en France .............................................................. 62
6.1.5. Traitement de l’OST : modalités et ratio ........................................................................................... 62
6.1.6. Modalités de traitement...................................................................................................................... 63
6.1.7. Expression du ratio ................................................................................................................................ 63
6.1.8. Annexes .................................................................................................................................................. 65
6.1.8.1. Périmètre des OST pouvant donner lieu à calcul de fractions : ................................... 65
6.1.9. Glossaire : ............................................................................................................................................... 67
6.2. Annex 2: Fraction processing synthesis V1.0.................................................................................... 68
6.2.1. Objet ....................................................................................................................................................... 68
6.2.2. Contexte ................................................................................................................................................ 68
6.2.3. Problème ................................................................................................................................................ 69
6.2.4. Pratique de marché ............................................................................................................................. 69
6.2.4.1. Méthode Top Down................................................................................................................. 70
6.2.4.1.1. Transmission d’un prix de référence par l’émetteur avant Record Date .............. 70
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6.2.4.1.1.1. Sur les soldes : ............................................................................................................. 70
6.2.4.1.1.2. Sur les flux .................................................................................................................... 70
6.2.4.1.2. Le centralisateur ne communique pas de prix de référence avant la Record
Date 70
6.2.4.1.2.1. Sur les soldes : ............................................................................................................. 70
6.2.4.1.2.2. Sur les flux : .................................................................................................................. 71
6.2.4.2. Méthode Mixte ......................................................................................................................... 71
6.2.4.2.1. Sur les soldes ...................................................................................................................... 71
6.2.4.2.2. Sur les flux............................................................................................................................ 71
6.2.5. Tableau de synthèse ............................................................................................................................ 72
6.3. Annex 3: Processing of corporate actions on registered securities synthesis V2.1 .................. 73
6.4. Annex 4: Standards impacts on SRD synthesis V0.5 ....................................................................... 88
6.4.1. Objet ....................................................................................................................................................... 88
6.4.2. Contexte ................................................................................................................................................ 88
6.4.3. Problématique ...................................................................................................................................... 88
6.4.3.1. Opérations de distributions de titres (Liste des distributions en annexe 2) .................. 88
6.4.3.2. Les réorganisations (Liste des réorganisations en annexe 3) ........................................... 88
6.4.3.2.1. Les réorganisations obligatoires sans option (avec ou sans fraction) :.................. 88
6.4.3.2.2. Les réorganisations obligatoires avec options ............................................................ 89
6.4.3.2.3. Les réorganisations volontaires ...................................................................................... 89
6.4.4. Solutions .................................................................................................................................................. 90
6.4.4.1. Généralisation de l’option par défaut aux seules positions SRD. .................................. 90
6.4.4.2. Exclusion du SRD de la valeur support de l’opération. ..................................................... 90
6.5. Annexes .................................................................................................................................................. 91
6.5.1.1. Annexe 1 : tableau de synthèse ........................................................................................... 91
6.5.1.2. Annexe 2 : Les opérations de distribution............................................................................ 92
6.5.1.3. Annexe 3 : Les opérations de réorganisation ..................................................................... 93
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1. Presentation
1.1. Context
In July 2006, the European Central Securities Depositories Association (ECSDA) published a report on
the removal of the Giovannini 3 Barrier, which aims to eliminate obstacles related to Corporate
Actions and offers standards to increase the efficiency of national and cross-border processing of
Corporate Actions.
This report led to the publication by the Corporate Action Joint Working Group (CAJWG) in 2012 a
final version of the « Market Standards for Corporate Actions Processing » which should enable
harmonization of the dates and procedures for the processing of the different Corporate Actions.
The implementation of these standards in France is done step by step.
In this context, several projects have already been carried out by the financial industry of the Place
de Paris, including:
- Modification of the securities ownership transfer regime, effective since April 2006
- Implementation of a new scheduling of dates for the distributions in cash in November 2007
at the launch of ESES Stream 1 of Euroclear
- Publication in January 2013 of a second version of the Securities Distributions White Paper
(Cahier des charges H2D1), describing the impacts of the standards developed by the
CAJWG on Securities Distribution (communication adhérents CFONB 20130020)
- Publication in January 2013 of a second version of the Reorganizations White Paper (Cahier
des charges HDR2), describing the impacts of the standards developed by the CAJWG on
Reorganization (communication adhérents CFONB 2013022)
- Publication in April 2013 of a first version of the Corporate Actions flows White Paper (Cahier
des charges Flux de Centralization), describing the impacts of the standards developed by
the CAJWG about the Corporate Actions flows (communication adhérents CFONB 2013092)
1.2. Purpose
This document therefore complements the French Market requirements (Corporate Action White
Papers), aiming to describe every Functional case and Market Practice which apply to Corporate
Action processing.
1 Harmonization of the distribution dates
2 Harmonization of the reorganization dates
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The Functional cases :
A functional case is the description of a type of Corporate Action (CA), and of its characteristics, such
as the case status (On going, Validated), the recommended CAEV and its Swift definition, comments,
and the list of the Market Practices which apply to the cases.
The Market Practices :
A Market Practice is a rule or a set of rules which describes national Practices that involved actors
must apply for the full accomplishment of a corporate action. Market Practices do not replace
CAJWG standards but they complete them.
Reference documentation :
- Standards CAJWG3
- Standards CASG4
- Requirement documents of the Place : Securities Distributions White Paper (Cahiers des
charges H2D), Reorganizations White Paper (Cahier des charges HDR), Corporate Action
Flows White Paper (Cahier des charges flux de centralisation)
- Euroclear DSD, DDD and Newletters
- EOC CA processing description tool
1.3. Perimeter
This document only describes the functional cases regarding corporate action to be modified in the
first phase (ESES Stream 5) of the Corporate Actions reform, including:
- Distributions of securities without options
- Mandatory reorganisations without options
The functional cases belonging to the Phase 2 (ESES Stream 6) will be described in a later version of
this document. RHDI operations are therefore not described in this document.
1.4. Specific cases
If the securities involved in the Corporate Action are eligible for SRD (Service de Règlement Différé),
please consult Annex 4: Standards impacts on SRD synthesis V0.5.
3 CAJWG : Corporate Action Joint Working Group
4 CASG : Corporate Action Sub Group
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1.5. Limits
This document and the Market Practices do not replace the standards established by the CAWJG
and the CASG.
This document and the Market Practices do not replace the processes defined by Euroclear in the
context of the CA processing on the ESES plateform or in T2S.
This document does not replace the Euroclear’ s documentation.
The Market Practices does not concern the relations bewteen the Account Holders and their clients.
1.6. Terms
The Market Practices are listed below in different sheets which summarize every relevant elements
concerning the Market Practice. The Market Practices are described in the item “Content” of the
dedicated sheet. If not, the Market Practice is fully described in a dedicated document (synthesis),
there are not detailed here and the document - present in annex - must be consulted.
1.7. How to use this document
This document is made of:
- A Presentation sheet for each corporate action cases (functional cases) in chapter 3
- A Presentation sheet for each Market Practice to be applied for the different functional cases
in chapter 4
- A matrix which represents the links between functional cases and Market Practices in chapter
2
- The different forms or files format that must be used for application of a Market Practice in
chapter 5
- In chapter 6 different “detailed memos” (synthesis) to which each Market Practice refers to
Cf. following page for a detailed illustration
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“How to use this document” detailed illustration
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2. Matches matrix
2.1. Securities distribution (without options)
Functional Cases SECURITIES DISTRIBUTION DIVIDEND PAID IN INTEREST PAYMENT
SPIN OFF
Market Practices BONUS ISSUE EQUITIES IN SECURITIES
FRACTION PROCESSING X X X X
RATIO ANNOUNCEMENT AND FRACTION CALCULATION X X X X
FRACTIONS PROCESSING IF REGISTERED X X X X
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES X X X X
LEGAL FORM OF NEW SECURITIES X X X X
“BRN” PROCESSING DATE REGARDING CORPORATE
X X X X
ACTION
LANGUAGE OF THE NARRATIVE X X X X
NO REGROUPING OF FRACTIONS X X X X
CUT OFF FOR GREEN LIGHT X X X X
EX-DATE - NEW SECURITIES DISTRIBUTION X X X X
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Functional Cases SECURITIES DISTRIBUTION DIVIDEND PAID IN INTEREST PAYMENT
SPIN OFF
Market Practices BONUS ISSUE EQUITIES IN SECURITIES
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
FRACTIONS COMPENSATION IN MIXED METHOD X X X X
PORTFOLIO TRANSFERS X X X X
CA FORM FIELD “DISPOSITION OF FRACTION” X X X X
REFERENCE PRICE TRANSMISSION IN OPERATIONS
X X X X
TREATED WITH TOP DOWN METHOD
REQUEST FOR LISTING SUSPENSION BEFORE A DRAW
RECORD DATE
FRACTIONS PROCESSING “PUR PEA” X X X X
Page 10 / 94CA
RATIO
“BRN”
SECURITIES
CALCULATION
Market
CORPORATE ACTION
Practices
FRACTION PROCESSING
PROCESSING
2.3.
ANNOUNCEMENT
CUT OFF FOR GREEN LIGHT
LANGUAGE OF THE NARRATIVE
DATE
LEGAL FORM OF NEW SECURITIES
NO REGROUPING OF FRACTIONS
AND
FRACTIONS PROCESSING IF REGISTERED
EX-DATE - NEW SECURITIES DISTRIBUTION
Functional
Cases
ON FLOWS PROCESSING ON REGISTERED
REGARDING
FRACTION
SECURITIES ATTACHMENT
X X
X X
X X
X X
X X
SQUEEZE OUT
MANDATORY CHANGE OF SECURITIES
X
X
FORM (BEARER TO REGISTERED)
MANDATORY CONVERSION OF FORMER
X
X
X
X
X
X
X
SECURITIES FOR NEW SECURITIES AT THE
INITIATIVE OF THE ISSUER
DISSOCIATION OF A FORMER SECURITY IN
X
X
X
X
NEW SECURITIES
DRAWING OF SECURITIES FOR A LATER
MP Description
REDEMPTION (LOTTERY)
Référence Document
EXCHANGE
X X X
X X
X X X
X X
X X
X X
X X
LIQUIDATION AGAINST SECURITIES OR CASH
X
X
X
X
X
X
X
MERGER
1.0
Version
ISIN CODES MERGER IN CASE OF FUNGIBLE
X
X
SECURITIES
French Market Practices
X
X
X
X
X
ISSUING CURRENCY REDENOMINATION
Mandatory reorganizations (without options)
ALLOCATION OF NEW SECURITIES
DIFFERENT FROM FORMER SECURITIES,
X
X
X
X
X
X
X
FROM THE SAME ISSUER OR FROM A
Date
DIFFERENT ISSUER
23/10/2014
Page 11 / 94
STOCK SPLIT / DIVISION OF SECURITIES
X
X
X
X
X
VALUE
REVERSE STOCK SPLIT FOR INCREASE OF
X
X
X
X
X
X
X
THE SECURITIES NOMINAL VALUE
X
X
BOOKING OUT OF VALUELESS SECURITIES
BOOKING OUT OF VALUELESS
X
X
X
X
X
CERTIFICATES
CAEV CHAN
EARLY REDEMPTION OF SECURITIES
X
X
X
X
X
X
X
CAEV SWIFT DEFINITION
INFORMATION
PARTIAL REGARDING
REDEMPTION WITHOUTA
X
X
X
X
X
X
X
CHANGE further
REDUCTION described
OF NOMINAL VALUEin
the corporate action details.
PARTIAL
EOC REDEMPTION
tool WITHOUT
reference
X
X
X
X
X
X
X
REDUCTION OF NOMINAL VALUE
Undocu
mented
TOTAL REDEMPTION OF A SECURITY AT
X
X
X
X
X
X
X
FINAL MATURITY
Following Market Practices
apply : LANGUAGE OF THE
NARRATIVEREQUEST
METHOD
REFERENCE
OPERATIONS
REGISTRATION
Market
DRAW RECORD DATE
PRICE
Practices
PORTFOLIO TRANSFERS
TREATED
WITH
FRACTIONS PROCESSING “PUR PEA”
TOP
Functional
Cases
TRANSMISSION
CA FORM FIELD “DISPOSITION OF FRACTION”
FRACTIONS COMPENSATION IN MIXED METHOD
FOR LISTING SUSPENSION BEFORE A
DOWN
IN
LAST-TRADING DATE – NEW SECURITIES
SECURITIES ATTACHMENT
X X
X X
SQUEEZE OUT
MANDATORY CHANGE OF SECURITIES
X
X
FORM (BEARER TO REGISTERED)
MANDATORY CONVERSION OF FORMER
X
X
X
X
X
X SECURITIES FOR NEW SECURITIES AT THE
INITIATIVE OF THE ISSUER
DISSOCIATION OF A FORMER SECURITY IN
X
X
NEW SECURITIES
DRAWING OF SECURITIES FOR A LATER
X
MP Description
REDEMPTION (LOTTERY)
Référence Document
EXCHANGE
X X
X X
X X
X X X
X X X
LIQUIDATION AGAINST SECURITIES OR CASH
X
X
X
X
X
MERGER
1.0
Version
ISIN CODES MERGER IN CASE OF FUNGIBLE
X
X
SECURITIES
French Market Practices
X
X
X
X
ISSUING CURRENCY REDENOMINATION
ALLOCATION OF NEW SECURITIES
DIFFERENT FROM FORMER SECURITIES,
X
X
X
X
X
FROM THE SAME ISSUER OR FROM A
Date
DIFFERENT ISSUER
23/10/2014
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STOCK SPLIT / DIVISION OF SECURITIES
X
X
VALUE
REVERSE STOCK SPLIT FOR INCREASE OF
X
X
X
X
X
THE SECURITIES NOMINAL VALUE
X
BOOKING OUT OF VALUELESS SECURITIES
BOOKING OUT OF VALUELESS
X
X
X
X
CERTIFICATES
CAEV CHAN
EARLY REDEMPTION OF SECURITIES
X
X
X
X
X
CAEV SWIFT DEFINITION
INFORMATION
PARTIAL REGARDING
REDEMPTION WITHOUTA
X
X
X
X
X
CHANGE further
REDUCTION described
OF NOMINAL VALUEin
the corporate action details.
PARTIAL
EOC REDEMPTION
tool WITHOUT
reference
X
X
X
X
X
REDUCTION OF NOMINAL VALUE
Undocu
mented
TOTAL REDEMPTION OF A SECURITY AT
X
X
X
X
X
FINAL MATURITY
Following Market Practices
apply : LANGUAGE OF THE
NARRATIVERéférence Document Version Date
MP Description 1.0 23/10/2014
French Market Practices
3. Functional Cases
EOC reference Functional case reference CAEV SWIFT
Distributions
Bonus issue Free of payment securities distribution from the issuer BONU
Stock dividend Dividend payment in securities DVSE
Spinoff Spin off SOFF
Mismatch /
Interest payment in securities (PINK not processed by EOC) PINK
standby
Réorganisations
SQUEEZE OUT
Mandatory change of securities detention form (bearer to
Change CHAN
registered)
Booking out of valueless certificates
MANDATORY CONVERSION OF FORMER SECURITIES FOR NEW SECURITIES AT
Conversion CONV
THE INITIATIVE OF THE ISSUER
Detachment DISSOCIATION OF A FORMER SECURITY IN NEW SECURITIES DETI
Exchange Exchange EXOF
Liquidation LIQUIDATION AGAINST SECURITIES OR CASH LIQU
Merger MERGER MRGR
Stock split SPLIT / DIVISION OF SECURITIES VALUE SPLF
WARRANT EXERCISE EXWA
EARLY REDEMPTION OF SECURITIES MCAL
PARTIAL REDEMPTION WITH REDUCTION OF NOMINAL VALUE PRED
PARTIAL REDEMPTION WITHOUT REDUCTION OF NOMINAL VALUE (PCAL NOT
PCAL
PROCESSED BY EOC)
TOTAL REDEMPTION OF A SECURITY AT FINAL MATURITY REDM
Mismatch /
DRAWING OF SECURITIES FOR A LATER REDEMPTION (LOTTERY) DRAW
standby
ISIN CODES MERGER IN CASE OF FUNGIBLE SECURITIES PARI
ISSUING CURRENCY REDOMINATION REDO
ALLOCATION OF SECURITIES (REORG) SOFF
REVERSE STOCK SPLIT FOR INCREASE OF THE SECURITIES NOMINAL VALUE SPLR
SECURITIES ATTACHMENT (ATTI NON PROCESSED BY EOC IF MANDATORY) ATTI
BOOKING OUT OF VALUELESS SECURITIES (WRTH MOST USED ON WARRANTS) WRTH
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3.1. Securities distribution (without options)
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3.1.1. SECURITIES DISTRIBUTION BONUS ISSUE
CAEV BONU
Bonus, scrip or capitalization issue. Security holders receive additional
CAEV Swift definition
assets free of payment from the issuer, in proportion to their holding.
EOC tool
BONUS ISSUE
reference
EX-DATE - NEW SECURITIES DISTRIBUTION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
FRACTION PROCESSING
RATIO ANNOUNCEMENT AND FRACTION CALCULATION
FRACTIONS PROCESSING IF REGISTERED
NO REGROUPING OF FRACTIONS
If fractions
FRACTIONS COMPENSATION IN MIXED METHOD
CA FORM FIELD “DISPOSITION OF FRACTION”
REFERENCE PRICE TRANSMISSION IN OPERATIONS TREATED WITH TOP DOWN METHOD
FRACTIONS PROCESSING “PUR PEA”
LEGAL FORM OF NEW SECURITIES
If registered
“BRN” PROCESSING DATE REGARDING CORPORATE ACTION
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
Comment
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3.1.2. DIVIDEND PAID IN EQUITIES
CAEV DVSE
Dividend paid to shareholders in the form of equities of the issuing
CAEV Swift definition
corporation.
EOC tool
STOCK DIVIDEND
reference
EX-DATE - NEW SECURITIES DISTRIBUTION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
FRACTION PROCESSING
RATIO ANNOUNCEMENT AND FRACTION CALCULATION
FRACTIONS PROCESSING IF REGISTERED
NO REGROUPING OF FRACTIONS
I fractions
FRACTIONS COMPENSATION IN MIXED METHOD
CA FORM FIELD “DISPOSITION OF FRACTION”
REFERENCE PRICE TRANSMISSION IN OPERATIONS TREATED WITH TOP DOWN METHOD
FRACTIONS PROCESSING “PUR PEA”
LEGAL FORM OF NEW SECURITIES
If registered
“BRN” PROCESSING DATE REGARDING CORPORATE ACTION
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
An “Issue” about the taxation of this corporate action is currently open
Comment
with the NMPG.
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3.1.3. INTEREST PAYMENT IN SECURITIES
CAEV Non processed by EOC (PINK)
Interest payment, in any kind except cash, distributed to holders of an
CAEV Swift definition
interest bearing asset.
EOC tool
Undocumented
reference
EX-DATE - NEW SECURITIES DISTRIBUTION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
FRACTION PROCESSING
RATIO ANNOUNCEMENT AND FRACTION CALCULATION
FRACTIONS PROCESSING IF REGISTERED
I fractions FRACTIONS COMPENSATION IN MIXED METHOD
CA FORM FIELD “DISPOSITION OF FRACTION”
REFERENCE PRICE TRANSMISSION IN OPERATIONS TREATED WITH TOP DOWN METHOD
FRACTIONS PROCESSING “PUR PEA”
LEGAL FORM OF NEW SECURITIES
If registered
“BRN” PROCESSING DATE REGARDING CORPORATE ACTION
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
Comment
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3.1.4. SPIN OFF
CAEV SOFF
A distribution of subsidiary stock to the shareholders of the parent
company without a surrender of shares. Spin-off represents a form of
CAEV Swift definition
divestiture resulting in an independent company. E.g. demerger,
distribution, unbundling.
EOC tool
SPIN OFF
reference
EX-DATE - NEW SECURITIES DISTRIBUTION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
FRACTION PROCESSING
RATIO ANNOUNCEMENT AND FRACTION CALCULATION
FRACTIONS PROCESSING IF REGISTERED
NO REGROUPING OF FRACTIONS
If fractions
FRACTIONS COMPENSATION IN MIXED METHOD
CA FORM FIELD “DISPOSITION OF FRACTION”
REFERENCE PRICE TRANSMISSION IN OPERATIONS TREATED WITH TOP DOWN METHOD
FRACTIONS PROCESSING “PUR PEA”
LEGAL FORM OF NEW SECURITIES
If registered
“BRN” PROCESSING DATE REGARDING CORPORATE ACTION
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
An “Issue” about the taxation of this corporate action is currently open
Comment
with the NMPG.
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3.2. Mandatory reorganisations (without options)
REORGANISATIONS
MANDATORY VOLUNTARY
WITH
WITHOUT OPTION
OPTIONS
WITH
WITH WITHOUT ON SHORT ON LONG
OPTION /
FRACTIONS FRACTION DEFAUT
PERIOD PERIOD
TOP DOWN MIXED
METHOD METHOD
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3.2.1. SECURITIES ATTACHMENT
CAEV Non processed by EOC in MAND (ATTI)
Combination of different security types to create a unit. Units are
usually comprised of warrants and bond or warrants and equity.
CAEV Swift definition
Securities may be combined at the request of the security holder or
based on Market convention.
EOC tool
Undocumented
reference
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
If fractions N/A
LEGAL FORM OF NEW SECURITIES
If registered
“BRN” PROCESSING DATE REGARDING CORPORATE ACTION
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
Comment
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3.2.2. SQUEEZE OUT
CAEV CHAN
CAEV Swift Information regarding a change further described in the corporate
definition action details.
EOC tool
CHANGE
reference
PORTFOLIO TRANSFERS
Following Market
CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
Practices apply :
LANGUAGE OF THE NARRATIVE
If fractions N/A
If registered N/A
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
Comment TEND is the most indicated CAEV but mustn’t be used today;
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3.2.3. MANDATORY CHANGE OF SECURITIES FORM (BEARER TO
REGISTERED)
CAEV CHAN
Information regarding a change further described in the corporate
CAEV Swift definition
action details.
EOC tool
CHANGE
reference
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
Following Market
PORTFOLIO TRANSFERS
Practices apply :
LANGUAGE OF THE NARRATIVE
If fractions N/A
If registered N/A
If Market Claims /
N/A
Transformations
Used when all bearer securities position must be transferred to
Comment
registered by issuer decision or regarding the regulation.
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3.2.4. MANDATORY CONVERSION OF FORMER SECURITIES FOR NEW
SECURITIES AT THE INITIATIVE OF THE ISSUER
CAEV CONV
Conversion of securities (generally convertible bonds or preferred
CAEV Swift definition shares) into another form of securities (usually common shares) at a
pre-stated price/ratio.
EOC tool
CONVERSION
reference
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
FRACTION PROCESSING
RATIO ANNOUNCEMENT AND FRACTION CALCULATION
FRACTIONS PROCESSING IF REGISTERED
NO REGROUPING OF FRACTIONS
If fractions
FRACTIONS COMPENSATION IN MIXED METHOD
CA FORM FIELD “DISPOSITION OF FRACTION”
REFERENCE PRICE TRANSMISSION IN OPERATIONS TREATED WITH TOP DOWN METHOD
FRACTIONS PROCESSING “PUR PEA”
LEGAL FORM OF NEW SECURITIES
If registered
“BRN” PROCESSING DATE REGARDING CORPORATE ACTION
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
Comment
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3.2.5. DISSOCIATION OF A FORMER SECURITY IN NEW SECURITIES
CAEV DETI
Separation of components that comprise a security, e.g. usually units
comprised of warrants and bond or warrants and equity. Units may be
CAEV Swift definition
broken up at the request of the security holder or based on Market
convention.
EOC tool
DETACHMENT
reference
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
If fractions N/A
LEGAL FORM OF NEW SECURITIES
If registered
“BRN” PROCESSING DATE REGARDING CORPORATE ACTION
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
Comment Component can be any instrument (not restricted)
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3.2.6. DRAWING OF SECURITIES FOR A LATER REDEMPTION (LOTTERY)
CAEV DRAW
Redemption in part before the scheduled final maturity date of
CAEV Swift definition a security. Drawing is distinct from partial call since drawn bonds
are chosen by lottery and with no reduction in nominal value.
EOC tool reference Undocumented
Following Market PORTFOLIO TRANSFERS
Practices apply : LANGUAGE OF THE NARRATIVE
If fractions N/A
If registered N/A
If Market Claims /
N/A
Transformations
Cf. Reorganizations White Paper « 6.1.2. Tirage au sort par
Comment
répartition proportionnelle de titres amortis (RPTA) »
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3.2.7. EXCHANGE
CAEV EXOF
Exchange of holdings for other securities and/or cash. The exchange
can be either mandatory or voluntary involving the exchange of
CAEV Swift definition
outstanding securities for different securities and/or cash. For example
"exchange offer", "capital reorganization" or "funds separation".
EOC tool
EXCHANGE
reference
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
FRACTION PROCESSING
RATIO ANNOUNCEMENT AND FRACTION CALCULATION
FRACTIONS PROCESSING IF REGISTERED
NO REGROUPING OF FRACTIONS
If fractions
FRACTIONS COMPENSATION IN MIXED METHOD
CA FORM FIELD “DISPOSITION OF FRACTION”
REFERENCE PRICE TRANSMISSION IN OPERATIONS TREATED WITH TOP DOWN METHOD
FRACTIONS PROCESSING “PUR PEA”
LEGAL FORM OF NEW SECURITIES
If registered
“BRN” PROCESSING DATE REGARDING CORPORATE ACTION
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
Always initiated by the issuer as a capital resulting of a single
Comment company which may result in further companies and/or involve
subsidiaries.
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3.2.8. LIQUIDATION AGAINST SECURITIES OR CASH
CAEV LIQU
A distribution of cash, assets, or both. Debt may be paid in order of
CAEV Swift definition
priority based on preferred claims to assets specified by the security.
EOC tool
LIQUIDATION
reference
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
FRACTION PROCESSING
RATIO ANNOUNCEMENT AND FRACTION CALCULATION
FRACTIONS PROCESSING IF REGISTERED
NO REGROUPING OF FRACTIONS
If fractions
FRACTIONS COMPENSATION IN MIXED METHOD
CA FORM FIELD “DISPOSITION OF FRACTION”
REFERENCE PRICE TRANSMISSION IN OPERATIONS TREATED WITH TOP DOWN METHOD
FRACTIONS PROCESSING “PUR PEA”
LEGAL FORM OF NEW SECURITIES
If registered
“BRN” PROCESSING DATE REGARDING CORPORATE ACTION
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
It is considered very rare for anything other than CASH to be available.
Comment If there is no distribution of any kind at all use CAEV//WRTH when
underlying security is declared worthless.
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3.2.9. MERGER
CAEV MRGR
Exchange of outstanding securities, initiated by the issuer which may
include options, as the result of two or more companies combining
CAEV Swift definition
assets, i.e. an external third party company. Cash payments may
accompany equity exchange.
EOC tool
MERGER
reference
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
FRACTION PROCESSING
RATIO ANNOUNCEMENT AND FRACTION CALCULATION
FRACTIONS PROCESSING IF REGISTERED
NO REGROUPING OF FRACTIONS
If fractions
FRACTIONS COMPENSATION IN MIXED METHOD
CA FORM FIELD “DISPOSITION OF FRACTION”
REFERENCE PRICE TRANSMISSION IN OPERATIONS TREATED WITH TOP DOWN METHOD
FRACTIONS PROCESSING “PUR PEA”
LEGAL FORM OF NEW SECURITIES
If registered
“BRN” PROCESSING DATE REGARDING CORPORATE ACTION
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
Initiated by the issuer. Involves two or more companies (i.e. an
external, third party company).
Comment
If the date of the General Meeting - which validates the corporate
action = PD, then LTD+1 = PD
In this case, the proceeds are listed since PD
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3.2.10. ISIN CODES MERGER IN CASE OF FUNGIBLE SECURITIES
CAEV PARI
Occurs when securities with different characteristics, e.g., shares with
different entitlements to dividend or voting rights, are assimilated, i.e.,
CAEV Swift definition
become identical in all respects. May be scheduled in advance or be
the result of an outside event.
EOC tool
Undocumented
reference
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
Following Market
PORTFOLIO TRANSFERS
Practices apply :
LANGUAGE OF THE NARRATIVE
If fractions N/A
If registered LEGAL FORM OF NEW SECURITIES
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
May be scheduled in advance, e.g., shares resulting from a bonus
may become fungible after a pre-set period of time, or may result
from outside events, e.g., merger, reorganization, issue of
Comment
supplementary tranches, etc.
No « BRN » is sent for this corporate action.
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3.2.11. ISSUING CURRENCY REDENOMINATION WITH ISIN CODE CHANGE
CAEV REDO
Event by which the unit (currency and/or nominal) of a security is
restated, e.g., nominal/par value of security in a national currency is
CAEV Swift definition
restated in another currency.
EOC tool
Undocumented
reference
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
If fractions N/A
LEGAL FORM OF NEW SECURITIES
If registered
“BRN” PROCESSING DATE REGARDING CORPORATE ACTION
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
Comment
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3.2.12. ALLOCATION OF NEW SECURITIES DIFFERENT FROM FORMER
SECURITIES, FROM THE SAME ISSUER OR FROM A DIFFERENT ISSUER
CAEV SOFF
A distribution of subsidiary stock to the shareholders of the parent
company without a surrender of shares. Spin-off represents a form of
CAEV Swift definition
divestiture resulting in an independent company. E.g., demerger,
distribution, unbundling.
EOC tool
Undocumented
reference
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
FRACTION PROCESSING
RATIO ANNOUNCEMENT AND FRACTION CALCULATION
FRACTIONS PROCESSING IF REGISTERED
NO REGROUPING OF FRACTIONS
If fractions
FRACTIONS COMPENSATION IN MIXED METHOD
CA FORM FIELD “DISPOSITION OF FRACTION”
REFERENCE PRICE TRANSMISSION IN OPERATIONS TREATED WITH TOP DOWN METHOD
FRACTIONS PROCESSING “PUR PEA”
LEGAL FORM OF NEW SECURITIES
If registered
“BRN” PROCESSING DATE REGARDING CORPORATE ACTION
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
Comment
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3.2.13. STOCK SPLIT / DIVISION OF SECURITIES VALUE
CAEV SPLF
Increase in a corporation's number of outstanding equities without
any change in the shareholder's equity or the aggregate Market
CAEV Swift definition
value at the time of the split. Equity price and nominal value are
reduced accordingly.
EOC tool
STOCK SPLIT
reference
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
If fractions N/A
If registered LEGAL FORM OF NEW SECURITIES
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
Division of the nominal of securities from an issuer and proportional
multiplication of the securities held.
Comment Formerly, this type of corporate action were categorized as
distributions.
No « BRN » is sent for this corporate action.
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3.2.14. REVERSE STOCK SPLIT FOR INCREASE OF THE SECURITIES NOMINAL
VALUE
CAEV SPLR
Decrease in a company's number of outstanding equities without any
change in the shareholder's equity or the aggregate Market value at
CAEV Swift definition
the time of the split. Equity price and nominal value are increased
accordingly.
EOC tool
Undocumented
reference
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
FRACTION PROCESSING
RATIO ANNOUNCEMENT AND FRACTION CALCULATION
FRACTIONS PROCESSING IF REGISTERED
NO REGROUPING OF FRACTIONS
If fractions
FRACTIONS COMPENSATION IN MIXED METHOD
CA FORM FIELD “DISPOSITION OF FRACTION”
REFERENCE PRICE TRANSMISSION IN OPERATIONS TREATED WITH TOP DOWN METHOD
FRACTIONS PROCESSING “PUR PEA”
LEGAL FORM OF NEW SECURITIES
If registered
“BRN” PROCESSING DATE REGARDING CORPORATE ACTION
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
Comment
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3.2.15. BOOKING OUT OF VALUELESS SECURITIES
CAEV WRTH
CAEV Swift definition Booking out of valueless securities.
EOC tool
Undocumented
reference
Following Market LANGUAGE OF THE NARRATIVE
Practices apply : PORTFOLIO TRANSFERS
If fractions N/A
If registered N/A
If Market Claims /
N/A
Transformations
Comment
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3.2.16. Booking out of valueless certificates
CAEV CHAN
Information regarding a change further described in the corporate
CAEV Swift definition
action details.
EOC tool
Undocumented
reference
Following Market LANGUAGE OF THE NARRATIVE
Practices apply : PORTFOLIO TRANSFERS
If fractions N/A
If registered N/A
If Market Claims /
N/A
Transformations
Comment
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3.2.17. WARRANT EXERCISE
CAEV EXWA
Option [offered to holders] to buy (call warrant) or to sell (put warrant)
a specific amount of equities, cash, commodity, etc. at a
CAEV Swift definition predetermined price over a specific period of time [which usually
corresponds to the life of the issue].
(Not applicable here as it is not in the Stream 5 scope)
EOC tool
Undocumented
reference
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
If fractions N/A
If registered N/A
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
In this case, the process is a booking out of warrants against cash
Comment
(redemption).
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3.2.18. EARLY REDEMPTION OF SECURITIES
CAEV MCAL
The redemption of an entire issue outstanding of securities, e.g.,
CAEV Swift definition bonds, preferred equity, funds, by the issuer or its agent, e.g., asset
manager, before final maturity.
EOC tool
Undocumented
reference
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
If fractions N/A
LEGAL FORM OF NEW SECURITIES
If registered
“BRN” PROCESSING DATE REGARDING CORPORATE ACTION
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
Comment
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3.2.19. PARTIAL REDEMPTION WITHOUT REDUCTION OF NOMINAL VALUE
CAEV PRED
Partial Redemption without Reduction of Nominal
Securities are redeemed in part before their scheduled final maturity
CAEV Swift definition
date without reduction of the nominal value of the shares. This is
commonly done by pool factor reduction.
EOC tool
Undocumented
reference
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
If fractions N/A
LEGAL FORM OF NEW SECURITIES
If registered
“BRN” PROCESSING DATE REGARDING CORPORATE ACTION
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
Comment
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3.2.20. PARTIAL REDEMPTION WITH REDUCTION OF NOMINAL VALUE
CAEV Not processed by EOC (PCAL)
Securities are redeemed in part before their scheduled final maturity
CAEV Swift definition date with reduction of the nominal value of the shares. The
outstanding amount of securities will be reduced proportionally.
EOC tool
Undocumented
reference
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
If fractions N/A
LEGAL FORM OF NEW SECURITIES
If registered
“BRN” PROCESSING DATE REGARDING CORPORATE ACTION
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
Comment PCAL can’t be used because it is not supported in ESES.
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3.2.21. TOTAL REDEMPTION OF A SECURITY AT FINAL MATURITY
CAEV REDM
The redemption of an entire issue outstanding of securities, e.g.,
CAEV Swift
bonds, preferred equity, funds, by the issuer or its agent, e.g., asset
definition
manager at final maturity.
EOC tool
Undocumented
reference
LAST-TRADING DATE – NEW SECURITIES REGISTRATION
Following Market PORTFOLIO TRANSFERS
Practices apply : CUT OFF FOR GREEN LIGHT ON THE PROCEEDS CREDIT
LANGUAGE OF THE NARRATIVE
If fractions N/A
LEGAL FORM OF NEW SECURITIES
If registered
“BRN” PROCESSING DATE REGARDING CORPORATE ACTION
If Market Claims /
CA ON FLOWS PROCESSING ON REGISTERED SECURITIES
Transformations
Comment CHOS when CCY choice
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4. Market Practices
4.1. FRACTION PROCESSING
Dedicated document, Cf. 6.2 Annex 2: Fraction processing synthesis
Details
V1.0
Status Validated (18/04/2014)
This description is available in the form of a synthesis. It defines the
terms of the processing for the compensation of fractions for securities
Content distributions or reorganizations.
Please consult the dedicated document.
Apply on
following Every Functional case if fractions
functional cases :
Related forms and
5.1 FRACTIONS TRANSMISSION FORM IN MIXED METHOD
files
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4.2. RATIO ANNOUNCEMENT AND FRACTION CALCULATION
Dedicated document, Cf. 6.1 Annex 1: Fraction calculation synthesis
Details
V1.0
Status Validated (18/04/2014)
This description is available in the form of a synthesis. It defines the
ratios announcement, calculation and processing of the fractions
under the Corporate Action reform.
Content For the announcement of the decimalized ratio type “1 former
security gives X,yz new security”, the decimal number is limited to 8.
Reminder: the Swift standard for the decimalized ratio is 15 figures,
therefore 13 decimal numbers.
Apply on
following Every Functional case if securities credit
functional cases :
Related forms and
files
Page 42 / 94You can also read
