Corporate action events
DETI: Detachment
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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).
- Code
- DETI
- Usually announced as
- VOLU or MAND
What DETI means
Units bundle two or more securities, typically a bond or a share with warrants. At some point the parts are separated: either on a date set by the terms or market convention, or when a holder asks for it. After detachment, the holder owns the components in the stated ratio instead of the unit.
Usually no cash moves: the unit is debited and the components are credited. The components may have their own ISINs and prices, so the book cost of the unit has to be split between them.
When you see it
- An MT564 with
:22F::CAEV//DETI. The SMPG grid lists it as VOLU for a holder-requested separation; where the market convention separates all units on a date, it is announced as MAND. The component can be any instrument, not only a warrant. - Compare with ATTI (combining the parts into a unit) and with SOFF (a spin-off, where the company distributes shares in another company rather than separating a unit).