Corporate action events
MCAL: Full Call/Early Redemption
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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.
- Code
- MCAL
- Usually announced as
- MAND
What MCAL means
Many bonds and preferred shares give the issuer a call right: the right to repay early, usually at par or at a stated call price. When the issuer exercises it for the whole issue, the event is MCAL. Funds can be called the same way when an asset manager closes a share class early.
Each holder receives the eligible quantity times the redemption price (:90a::OFFR in the cash movement), and the full position is debited. A call premium, if any, is part of the price or shown separately as a redemption premium amount.
The ECB SCoRE rulebook lists MCAL as MAND with a single CASH option. Its table of events subject to blocking also mentions MCAL with CHOS, so a choice variant can occur; read the options in the notification.
When you see it
- In an MT564 after the issuer’s call notice, typically weeks before the payment date, with the record date and payment date. The final coupon is usually a separate INTR event with the same payment date.
- Compared with REDM: REDM is repayment at the scheduled final maturity; MCAL is before it. Compared with PCAL and PRED: those redeem only part of the issue. Compared with DRAW: a drawing redeems particular bonds selected by lottery. Compared with BPUT: a put is the holder’s choice, not the issuer’s.
What to do next
- No instruction. Stop new trades for settlement after the record date and check open settlements and securities lending: positions on loan on the record date are usually compensated through market claims.
- On the MT566, reconcile the debit of the full position (sequence D1) and the cash posting (
:19B::PSTAin D2) against quantity times call price. - Close the position and remove the ISIN from active static data after the payment date; check the separate final INTR event for accrued interest.
Where it appears in MT and ISO 20022
MT (ISO 15022)
- MT564 sequence A (GENL),
:22F::CAEV//MCALwith:22F::CAMV//MAND - MT564 sequence E2 (cash movement),
:90a::OFFRfor the redemption price - MT566 sequence A,
:22F::CAEV//MCAL