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Corporate action events

WRTH: Worthless

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WRTH announces that securities have no value and are being booked out of holders’ accounts, typically after a bankruptcy or a liquidation with nothing left for holders. Nothing is paid in return.

Code
WRTH
Usually announced as
MAND

What WRTH means

When a company is wound up and there is nothing to distribute, or when a security otherwise loses all value, the account servicer removes it from the books. WRTH is the event for that write-off: the position is debited with no cash or securities in exchange.

The ECB SCoRE rulebook (2021 edition) and Clearstream list WRTH as MAND with the option LAPS and a debit of the eligible balance. An earlier SCoRE rulebook for debt instruments showed it as VOLU, so read the flag in the notification.

When you see it

  • In an MT564 after a BRUP or at the end of a liquidation, with a record date and the date of the debit.
  • WRTH vs LIQU: LIQU pays holders something; when nothing is paid, the right event is WRTH. WRTH vs DLST: a delisted security still exists and may have value.

What to do next

  • No instruction for MAND. Reconcile the debit on the MT566 and close the position at zero value.
  • Keep the notification and confirmation: holders often need evidence that the security became worthless to claim a capital loss for tax.

Where it appears in MT and ISO 20022

MT (ISO 15022)

  • MT564 sequence A (GENL), :22F::CAEV//WRTH with :22F::CAMV//MAND; sequence E, :22F::CAOP//LAPS
  • MT566 sequence A, :22F::CAEV//WRTH

MX (ISO 20022)

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