Corporate action events
PARI: Pari-Passu
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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.
- Code
- PARI
- Usually announced as
- MAND
What PARI means
New shares or bonds are sometimes issued on a separate ISIN because, for a while, they do not carry exactly the same rights as the existing ones: they may not rank for the next dividend, or be a new tranche that is not yet fungible. On the pari passu date they become identical, and PARI moves them into the main line.
The ECB SCoRE rulebook gives PARI as MAND with a SECU option: debit of the temporary ISIN and credit of the main ISIN, always one for one. The date on which the securities assimilate is the pari passu date (:98a::PPDT in the securities movement).
When you see it
What to do next
- No instruction. Before the pari passu date, settle or move pending trades in the temporary ISIN; after it, only the main ISIN trades.
- On the MT566, reconcile the debit of the temporary line and the credit of the main line for the same quantity, and merge the cost bases in your books.
Where it appears in MT and ISO 20022
MT (ISO 15022)
- MT564 sequence A (GENL),
:22F::CAEV//PARIwith:22F::CAMV//MAND; sequence E1,:98a::PPDT(pari passu date) - MT566 sequence A,
:22F::CAEV//PARI