Do I have to instruct a conversion?

Only when the event is voluntary. If the terms force conversion (CAMV//MAND), all holders are converted on the stated date without instruction.

What happens to accrued interest when a convertible bond is converted?

It depends on the bond’s terms. Often accrued interest is forfeited on conversion, which is why holders time conversions around coupon dates. The announcement should say whether accrued interest is paid.

Why did I get cash as well as shares?

The conversion ratio usually produces a fraction of a share. Fractions are normally paid in cash at a stated price rather than delivered.

Corporate action events

CONV: Conversion

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

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.

Code: CONV
Usually announced as: VOLU or MAND (CHOS also allowed)

What CONV means

A convertible bond pays interest like a bond but lets the holder swap it for a fixed number of the issuer’s shares. Convertible preferred shares work the same way. The holder converts when the shares are worth more than the bond or preferred share, giving up the original security and receiving shares; fractions are usually paid in cash.

Some instruments convert automatically: mandatory convertibles at maturity, or bonds that the issuer forces into conversion under its terms. Then every holder is converted on the same date. Accrued interest is often lost on conversion, depending on the terms.

When you see it

For an optional conversion: an MT564 with :22F::CAEV//CONV and :22F::CAMV//VOLU, options SECU (convert) and NOAC, the conversion ratio (:92D::NEWO), the conversion period or deadline, and cash in lieu of fractions where relevant. For a forced conversion: :22F::CAMV//MAND. The SMPG grid also allows CHOS. :22F::CONV//INTE or //FINL marks an interim or final conversion.
CONV vs other events: EXOF is an exchange offer made by the issuer, not a right in the security’s terms. EXWA uses a warrant to buy shares and normally needs a payment. BPUT gives cash back instead of shares. A bond converted at maturity is CONV, not REDM, when shares are delivered.

What to do next

For a voluntary conversion, compare the value of the shares to be received with the market value of the bond and accrued interest, then instruct with an MT565 (SECU and the nominal) within the conversion period.
When the MT566 arrives, reconcile the debit of the bonds or preferred shares, the credit of new shares at the ratio, and any cash for fractions. Transfer the book cost to the new shares according to your tax rules.

Where it appears in MT and ISO 20022

MT (ISO 15022)

MT564 sequence A (GENL): :22F::CAEV//CONV, with :22F::CAMV//VOLU, MAND or CHOS; conversion type in sequence D :22F::CONV//INTE or //FINL.
MT565, MT566, MT567 and MT568 sequence A: :22F::CAEV//CONV.

MX (ISO 20022)

seev.031 CorpActnGnlInf/EvtTp/Cd = CONV, with CorpActnGnlInf/MndtryVlntryEvtTp/Cd = VOLU, MAND or CHOS.
The same event type element is used in seev.033 (instruction) and seev.036 (movement confirmation).

Questions

Do I have to instruct a conversion?: Only when the event is voluntary. If the terms force conversion (CAMV//MAND), all holders are converted on the stated date without instruction.
What happens to accrued interest when a convertible bond is converted?: It depends on the bond’s terms. Often accrued interest is forfeited on conversion, which is why holders time conversions around coupon dates. The announcement should say whether accrued interest is paid.
Why did I get cash as well as shares?: The conversion ratio usually produces a fraction of a share. Fractions are normally paid in cash at a stated price rather than delivered.