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Corporate action events

REMK: Remarketing Agreement

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REMK announces a remarketing: preferred shares or bonds are resold through a remarketing agent while the interest or dividend rate is reset by negotiation between issuer and holders. Holders choose whether to buy or sell, so the event is mandatory with choice.

Code
REMK
Usually announced as
CHOS

What REMK means

Some preferred shares and bonds have rates that are reset periodically through remarketing. A remarketing agent negotiates the new rate and resells the securities that holders want to tender, to buyers who accept the new terms.

The ECB SCoRE rulebook lists REMK as CHOS with two options: SECU for buying securities and CASH for selling them. Clearstream lists the same combinations.

When you see it

  • In an MT564 with response and market deadlines and a payment date, on securities that carry a remarketing agreement in their terms.
  • REMK vs BPUT: a put is the holder’s right to sell back to the issuer at a fixed price; in a remarketing the securities are resold to new investors at a negotiated rate.

What to do next

  • Check the proposed or reset rate and decide whether to keep, sell or buy. Instruct with an MT565 before the response deadline.
  • Reconcile the MT566: cash against securities for sales, or securities against cash for purchases, and update the coupon or dividend rate in static data.

Where it appears in MT and ISO 20022

MT (ISO 15022)

  • MT564 sequence A (GENL), :22F::CAEV//REMK with :22F::CAMV//CHOS; options :22F::CAOP//SECU and //CASH
  • MT565 and MT566 sequence A, :22F::CAEV//REMK

MX (ISO 20022)

  • seev.031 CorpActnGnlInf/EvtTp/Cd = REMK (checked in seev.031.001.15), with the flag in CorpActnGnlInf/MndtryVlntryEvtTp/Cd
  • The same CorpActnGnlInf/EvtTp/Cd = REMK appears in seev.033 (instruction) and seev.036 (movement confirmation)