What is the difference between BIDS and TEND?

Who makes the offer. BIDS is the issuer buying back its own securities. TEND is a third party, such as a bidder in a takeover, offering to buy them.

Do I have to respond to a BIDS event?

No. It is voluntary. If you send nothing, the holding stays as it is. Respond only if the client wants to sell into the offer, and do it before the account servicer’s deadline.

Why did I receive fewer cash proceeds than I instructed?

Most likely the offer was oversubscribed and acceptances were prorated. The securities not bought should be returned to the account; the MT566 and the event results show the factor applied.

Corporate action events

BIDS: Repurchase Offer/Issuer Bid/Reverse Rights

Written and maintained by ZagTrader. Last reviewed 21 October 2026. How this page is sourced and checked

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.

Code: BIDS
Usually announced as: VOLU (CHOS also allowed)

What BIDS means

A company with spare cash can return it to shareholders by buying back shares instead of paying a dividend. A bond issuer may do the same to retire debt early. When the buy-back is made as an offer to all holders, rather than by buying quietly on the exchange, it is announced as BIDS. The defining point is that the buyer is the issuer itself; the securities bought are normally cancelled.

Holders who accept give up their securities and receive cash at the offer price. If more securities are offered than the issuer wants to buy, acceptances are scaled back (prorated) and the excess is returned. Holders who do nothing keep their securities.

Some markets run a buy-back as reverse rights: the issuer first distributes tradable rights to sell (an intermediate securities distribution, RHDI with :22F::RHDI//BIDS), and the BIDS event then lets holders use those rights to sell shares back.

When you see it

An MT564 with :22F::CAEV//BIDS and normally :22F::CAMV//VOLU, with option CASH (sell) and NOAC (take no action). The SMPG grid also allows the CHOS indicator. Expect a market deadline (MKDT), the account servicer’s earlier response deadline, an offer price per security (:90a::OFFR) and, after the offer closes, a proration date and results.
How it differs from similar offers: TEND is made by a third party to acquire the securities, not by the issuer. DTCH is an auction where holders name their price within a range. EXOF gives other securities in exchange, not cash. ODLT targets only odd lots.

What to do next

Get the client decision before your account servicer’s response deadline, which is earlier than the issuer’s market deadline. Instruct with an MT565 (:22F::CAOP//CASH and the quantity in :36a::QINS); securities instructed are usually blocked until payment.
When the MT566 arrives, reconcile the securities debit with the cash credit at the offer price. If proration applied, check that the unaccepted securities came back and that the quantity paid matches the published proration factor.
Tax treatment of a buy-back can differ from a sale on the market: in some countries part of the price is treated as a dividend. Check the issuer’s documentation and your client’s tax status before booking a capital gain.

Where it appears in MT and ISO 20022

MT (ISO 15022)

MT564 sequence A (GENL): :22F::CAEV//BIDS, with :22F::CAMV//VOLU (or CHOS); options in sequence E :22F::CAOP//CASH and //NOAC.
MT565, MT566, MT567 and MT568 sequence A: :22F::CAEV//BIDS.

MX (ISO 20022)

seev.031 CorpActnGnlInf/EvtTp/Cd = BIDS, with CorpActnGnlInf/MndtryVlntryEvtTp/Cd = VOLU; options in CorpActnOptnDtls/OptnTp/Cd (CASH, NOAC).
The same event type element is used in seev.033 (instruction) and seev.036 (movement confirmation).

Questions

What is the difference between BIDS and TEND?: Who makes the offer. BIDS is the issuer buying back its own securities. TEND is a third party, such as a bidder in a takeover, offering to buy them.
Do I have to respond to a BIDS event?: No. It is voluntary. If you send nothing, the holding stays as it is. Respond only if the client wants to sell into the offer, and do it before the account servicer’s deadline.
Why did I receive fewer cash proceeds than I instructed?: Most likely the offer was oversubscribed and acceptances were prorated. The securities not bought should be returned to the account; the MT566 and the event results show the factor applied.