Corporate Action Event Codes (22F::CAEV)

DVCA is a cash dividend: the company pays shareholders a set amount of cash per share. It is the most common corporate action event and is normally mandatory: holders on the record date receive the cash without instructing.

DVSE is a stock dividend: the company pays its dividend in its own shares rather than in cash. Holders on the record date receive new shares in proportion to their holding.

DVOP is a dividend with a choice: holders can take the dividend in cash or in new shares issued by the company. It is a mandatory event with options, so holders who do not instruct receive the default option.

DVSC is a dividend or interest payment made in the form of scrip, a certificate or entitlement that stands in for the payment, rather than in cash or in ordinary shares.

DRIP is a dividend that holders can take in cash or have reinvested in additional shares of the company, which the issuer or its agent buys in the market. Holders choose between the cash and the reinvestment option.

SHPR announces a cash payment to shareholders out of the company’s share premium reserve. It looks like a dividend, but because it comes from paid-in capital it is often taxed differently. It is mandatory.

CAPD is a cash payment to shareholders that comes from the company’s capital account rather than from its profits. The number of shares and their face value stay the same.

CAPG is a distribution of profits a company or, most often, a fund made by selling assets. Mutual funds, unit trusts and SICAVs pay it to their holders, and it is often reinvested in more units of the fund.

DRCA is a cash distribution to holders that comes from the sale of securities they were not eligible to receive, most often in a depositary receipt programme: the depositary sells the entitlement and passes the net proceeds to the receipt holders.

ACCU announces that a fund keeps the income it earned during an accounting period inside the fund instead of paying it out. Holders of accumulation units or shares receive nothing, but the retained income is treated as distributed to them for tax purposes.

LIQU announces a payment from a company or fund that is being wound up: cash, other assets, or both, paid out to holders. It is usually mandatory, sometimes with a choice of consideration, and the underlying security is debited only on the final payment.

INTR announces an interest (coupon) payment to holders of an interest-bearing security. It is mandatory: holders receive cash on the payment date, unless the issuer offers a choice of currency, in which case the event is sent as CHOS.

PINK announces an interest payment made in any form other than cash, typically additional bonds of the same issue credited to holders. It is mandatory: no instruction is needed.

PRII announces, in one event, an interest payment and a reduction of the amortised value of a pool-factor security. It is still in the MT564 code list, but no longer in the ISO 20022 seev.031 code list, and many markets announce the two parts as INTR and PRED.

REDM announces the redemption of an entire issue at its scheduled final maturity date. Holders are repaid, usually in cash, and the whole position is debited. It is mandatory, unless holders may choose the payment currency.

MCAL announces that the issuer, or its agent, redeems the entire outstanding issue before its final maturity date. Holders receive cash at the call price and the whole position is debited on the payment date; no instruction is needed.

PCAL announces that the issuer repays part of a bond issue before maturity by reducing the nominal amount: each holder’s position goes down in proportion and the repaid part is paid in cash. It is mandatory.

PRED announces that part of the principal of a security is repaid without reducing the nominal held: the repayment is expressed through a lower pool factor. It is mandatory and typical of asset-backed and mortgage-backed securities.

DRAW is a partial redemption of a bond before final maturity in which the bonds to be repaid are chosen by lottery. Drawn bonds are repaid in full, the others stay outstanding, and the nominal value of each bond does not change.

BPUT is an early redemption at the holder’s request: the bond’s terms let holders sell the bond back to the issuer at a set price on certain dates. Holders who want their money back instruct; those who do nothing keep the bond.

PDEF announces that the issuer has set money aside, usually in trust, to redeem part of an issue, and that under the bond’s terms those securities may be redeemed before their stated maturity. Holders are informed; any split of the position into a separate line follows the announcement.

EXTM is a maturity extension: the final maturity date of a bond is moved to a later date, as the terms allow, either at the issuer’s or the holders’ initiative. The bond may come out of it with a new rate, maturity date or identifier.

DFLT tells bondholders that the issuer has failed to meet an obligation that counts as an event of default under the bond agreement, such as a missed coupon or principal payment, and has not remedied it within any grace period.

CREV announces that a credit event has occurred for a security whose payments depend on the creditworthiness of another entity, typically a credit-linked note: the reference entity has failed to meet its obligations as defined in the terms.

CAPI announces that the outstanding principal of a debt instrument goes up without any change in its nominal value, usually because interest that was due but not paid is added to the principal. It is normally reflected by an increase in the pool factor.

INCR announces that the face (nominal) value of each security goes up while the number of securities in issue stays the same. It is a mandatory event: holders do nothing and the account servicer updates the security or, when the ISIN changes, exchanges the position.

DECR is a reduction in the face (nominal) value of each share, or in the value of a fund’s assets, while the number of shares or units stays the same. The reduction is often paid back to holders in cash.

MRGR announces that two or more companies combine and the holders’ securities are exchanged for securities of the new or surviving company, cash, or a mix. It is mandatory; when holders can choose the consideration, it is sent as CHOS with a default option.

SPLF announces a stock split: the number of shares increases and the nominal value and price per share fall in proportion, with no change in the holder’s total value. It is mandatory: the old position is replaced by the new number of shares.

SPLR announces a reverse stock split, or consolidation: the number of shares falls and the nominal value and price per share rise in proportion, with no change in total value. It is mandatory; fractions are usually paid in cash.

BONU is a bonus or capitalisation issue: the company gives existing shareholders extra shares free of charge, in proportion to what they hold, usually by turning reserves into share capital. The holder keeps the existing shares and receives the new ones.

SOFF announces the distribution to holders of securities issued by another company, new or existing, such as in a spin-off, demerger or unbundling. Holders keep their original shares and receive the new ones in proportion. It is normally mandatory.

EXOF is an exchange: holders give up their securities and receive other securities, cash or both. It can be mandatory (a capital reorganisation), mandatory with a choice, or a voluntary exchange offer.

CHAN announces a change to the security or its issuer that is described in more detail in the event, for example a name change, a change in the terms of a bond, or a change in the form of the security such as bearer to registered.

PARI announces that securities which differed from the main line, for example new shares without the right to the current dividend, become identical to it (pari passu) and are moved into the main ISIN. It is mandatory: the old line is debited and the main line credited one for one.

ATTI is the event in which separate securities, typically a bond or share and a warrant, are put together again to form a unit. It is the reverse of a detachment (DETI): the components are debited and the unit security is credited.

DETI is the separation of a unit into its components, for example a bond with warrants into an ex-warrant bond and the warrants, so that each part can be held and traded on its own. It is the reverse of an attachment (ATTI).

REDO announces that the unit of a security is restated, for example its nominal value moves from a national currency into another currency. It is mandatory; often informative, it includes an exchange when the ISIN changes.

SMAL announces that the smallest unit in which a security can be traded or transferred changes, so that a new negotiable unit applies. Holdings are not paid or converted, but positions that are not a multiple of the new unit may become odd lots.

PLAC announces that a company changes its place of incorporation: a new state for a US company or a new country for others. It is mandatory; often purely informative, it can include an exchange into a new ISIN or, where shares must be re-registered, a choice of registrar.

CONV is the conversion of a security, usually a convertible bond or a preferred share, into another security, usually ordinary shares, at a ratio or price fixed in the terms. It is voluntary when the holder chooses to convert and mandatory when the terms force it.

RHTS announces a rights issue as a single event: holders are given rights to subscribe for new securities and decide, in the same event, whether to exercise, sell or let them lapse. It is mandatory with choice; holders who do not instruct usually see their rights lapse.

EXRI is the exercise event on rights or other intermediate securities: after the rights were distributed in a first event (RHDI), EXRI lets holders subscribe for new securities, sell or buy rights, or let them lapse.

RHDI distributes intermediate securities, such as subscription rights, that give holders the right to take part in a later event. It is the first of two events: holders receive the rights automatically, then decide what to do with them in the follow-on event, typically EXRI.

TEND announces an offer by a third party, usually a bidder for the company, to buy holders’ securities for cash, securities or both. It is normally voluntary: holders decide whether to tender. A squeeze-out that forces the last holders to sell is sent as mandatory.

BIDS is an offer by the issuer to buy back its own shares or bonds from holders, usually to reduce the number in issue. Holders choose whether to sell part or all of their holding at the offered price or do nothing.

DTCH is a Dutch auction offer: a party that wants to buy a security, often the issuer, sets a price range and invites holders to say how much they would sell and at what price within that range. The buyer accepts the lowest offers first until it has bought what it wants.

EXWA is the exercise of warrants: holders use the warrant to buy (call warrant) or sell (put warrant) a set amount of shares, cash or another asset at a fixed price, during an exercise period or at expiry.

ODLT is an offer, usually from the issuer, to buy holdings smaller than a trading lot (odd lots) or to let holders buy up to a full lot. It is voluntary: holders choose to sell, to buy or to do nothing.

PRIO announces an offer of new securities, usually a public offer, in which existing holders get priority because the quantity available is limited. Taking part is voluntary: holders subscribe, possibly for more than their priority, or do nothing.

COOP is a company option: a right granted by the company that lets the holder buy shares in that company at a pre-set price on one or more future dates. Holders decide whether to exercise; options not exercised lapse or roll on to the next exercise date.

NOOF announces an offer to buy holders’ securities that is not supervised by a regulator or official body, for example a broker offer, a mini-tender or another third-party offer, often at a price below the market. Participation is voluntary.

REMK announces a remarketing: preferred shares or bonds are resold through a remarketing agent while the interest or dividend rate is reset by negotiation between issuer and holders. Holders choose whether to buy or sell, so the event is mandatory with choice.

PPMT announces a call for the next instalment on partly paid securities: holders pay an amount per share and receive a more fully paid line. It is mandatory, or mandatory with choice where holders may let the shares lapse instead of paying.

CONS is a consent solicitation: the issuer or another party asks holders to approve a proposal, typically a change to a bond’s terms, in writing and without calling a meeting. Holders consent, refuse, abstain or do nothing, and may receive a fee for consenting.

MEET announces a company’s annual general meeting to its shareholders. Taking part is voluntary: holders who want to vote send instructions before the deadline. In ISO 20022, meetings are not announced in seev.031 but in the seev.001 meeting notification.

OMET announces an ordinary general meeting of shareholders. Like other meeting events it is voluntary: holders who want to vote instruct before the deadline. In ISO 20022 the meeting is announced in seev.001, not in seev.031.

XMET announces an extraordinary or special general meeting, called outside the annual cycle to decide a specific matter such as a merger, a capital increase or a change to the articles. Voting is voluntary; holders instruct before the deadline.

BMET announces a meeting of the holders of a bond, called to vote on resolutions such as changes to the terms, a waiver of a default or a restructuring. Holders can vote for or against, abstain, or appoint a proxy.

CMET announces a meeting of security holders that is convened by a court, most often to vote on a scheme of arrangement such as a takeover or restructuring. Holders can vote for or against, abstain or appoint a proxy.

INFO carries information from the issuer that has no accounting or financial effect on holders, such as a conference call for bondholders. Nothing is credited or debited and no instruction is expected.

DSCL is a disclosure request: the issuer, or someone on its behalf, asks holders or beneficial owners to reveal their name, location and holding in a security, as some laws or the issuer’s articles allow.

CLSA announces a class action or a proposed settlement in which investors who held or traded a security during a given period may claim compensation for losses. Eligible holders decide whether to file a claim, object or do nothing.

BRUP tells holders that the issuer is in bankruptcy or a similar insolvency procedure, usually after a court ruling. It is normally an information event with no options and no payment, but it often comes before a delisting, a liquidation payment or a write-off.

TREC is the event used to reclaim tax that was withheld in excess of the holder’s actual tax liability on an earlier dividend or interest payment. Holders take part by instructing and providing the documents; the refund is paid in cash.

WTRC is the certification process through which holders document their tax status so that withholding tax on an income payment is reduced or waived at source. It is voluntary: holders who do not certify are taxed at the default rate.

CERT asks holders of a bond issued under the US TEFRA D rules to certify that the beneficial owners are not US persons, so that their interest in a temporary global note can be exchanged into the permanent global note.

ACTV tells holders that trading in a security has started or has restarted after a suspension. It is an information event: nothing is paid or delivered, but trading, pricing and collateral systems need the new status.

SUSP tells holders that trading in a security has been suspended. It is an informational, mandatory event: nothing moves, but trading, pricing and settlement plans are affected.

DLST announces that a security is delisted: it is removed from the official list of a stock exchange, typically because it no longer meets the listing rules or because the issuer asked to leave. The securities still exist, but there is no longer an exchange price.

WRTH announces that securities have no value and are being booked out of holders’ accounts, typically after a bankruptcy or a liquidation with nothing left for holders. Nothing is paid in return.

OTHR is the catch-all event code, for a corporate action that no other code describes, such as a new type of event. It can be mandatory, mandatory with choice or voluntary, and the details are always in the narrative.