The corporate action lifecycle, from announcement to payment

Who is involved and which way the messages flow

Information flows down the holding chain and instructions flow up it. The issuer, through its agent or registrar, announces the event; the CSD passes the details to its participants; each custodian passes them to its own clients, adding its own deadlines and the client’s eligible position. Elections go back the other way, from the account owner to the custodian, to the CSD and finally to the issuer’s agent. Cash and securities then come down the chain on the payment date.

Every level re-sends the information in its own messages, so an asset manager with assets at several custodians receives several announcements of the same event, each with that custodian’s reference in :20C::CORP//. The official event reference, when the market assigns one, travels in :20C::COAF// and is the best key for linking them.

Event types are coded in :22F::CAEV//, for example DVCA (cash dividend), DVOP (dividend with options), SPLF (stock split), BONU (bonus issue), INTR (interest payment), REDM (final redemption), TEND (tender offer) and MRGR (merger).

Lifecycle at a glance

The ISO 20022 side is not one-to-one: one MT564 function maps to different seev messages depending on its purpose, and the MT567 splits into three. Narrative about an announced event belongs inside seev.031; seev.038 is meant for stand-alone narrative. See MT564 or MT568 for when to use which.

Mandatory, choice and voluntary events

Every announcement says in :22F::CAMV// whether the holder has to act. This one field drives the workload of a corporate actions team, because only events that need an instruction create deadlines and risk.

• The same event code can carry different indicators in different markets, so always read CAMV rather than assuming it from CAEV.
• Each option is a CAOPTN block with a number in :13A::CAON// and a code in :22F::CAOP//, for example CASH, SECU, EXER, LAPS or NOAC (take no action). :17B::DFLT//Y marks the default option, which is applied when no instruction arrives.
• Rights issues are usually announced as two linked events: the distribution of rights (RHDI, mandatory) and then their exercise (EXRI, with a choice).

Key dates and what each one decides

Corporate action dates sit in two places of the MT564: event dates in sequence D (CADETL) and option dates in sequence E (CAOPTN). In seev.031 they sit in CorpActnDtls/DtDtls and CorpActnOptnDtls/DtDtls.

• Plan from the response deadline, not the market deadline: it is the last date your custodian promises to act on.
• Trades pending over the record date create market claims: the entitlement lands with the seller’s account and must be passed to the buyer. Claims settle as separate instructions with transaction type CLAI and the event reference in :20C::CORP//.
• If a trade is still pending after a reorganisation, the CSD may transform it: cancel the old instruction and create new ones in the new security. Expect MT548 cancellations and new generated instructions.

Announcement and entitlement (MT564, seev.031)

The first MT564 often arrives with incomplete terms. :25D::PROC// says how final it is: PREU preliminary and unconfirmed, PREC preliminary but confirmed by the custodian’s official source, COMU complete but unconfirmed, COMP complete and confirmed, and ENTL when the message contains entitlements. Further updates come as REPL messages linked to the previous one with :20C::PREV//.

Sequence B gives the underlying security in 35B and, in ACCTINFO, your safekeeping account and balances: :93B::ELIG// is the total eligible balance, and other qualifiers break it down (blocked, on loan, pending delivery or receipt). Entitlements per option appear in SECMOVE and CASHMOVE blocks: credit or debit in :22H::CRDB//, the security or amount, rates such as :92F::GRSS// (gross dividend) or :92D::NEWO// (new for old), and the payment date.

{1:F01CUSTAEADAXXX0000000000}{2:I564FUNDLULLXXXXN}{4:
:16R:GENL
:20C::CORP//DVOP26AEZ016
:20C::SEME//CN26102000123
:23G:NEWM
:22F::CAEV//DVOP
:22F::CAMV//CHOS
:98C::PREP//20261020090000
:25D::PROC//COMP
:16S:GENL
:16R:USECU
:35B:ISIN AEZAGT000016
ZAGTRADER TEST HOLDING PJSC
:16R:ACCTINFO
:97A::SAFE//ZAG-SAFE-0001
:93B::ELIG//UNIT/100000,
:16S:ACCTINFO
:16S:USECU
:16R:CADETL
:98A::ANOU//20261015
:98A::XDTE//20261028
:98A::RDTE//20261029
:98A::PAYD//20261112
:16S:CADETL
:16R:CAOPTN
:13A::CAON//001
:22F::CAOP//CASH
:11A::OPTN//AED
:17B::DFLT//Y
:98C::RDDT//20261105120000
:92F::GRSS//AED0,25
:16R:CASHMOVE
:22H::CRDB//CRED
:19B::ENTL//AED25000,
:98A::PAYD//20261112
:16S:CASHMOVE
:16S:CAOPTN
:16R:CAOPTN
:13A::CAON//002
:22F::CAOP//SECU
:17B::DFLT//N
:98C::RDDT//20261105120000
:16R:SECMOVE
:22H::CRDB//CRED
:35B:ISIN AEZAGT000016
:92D::NEWO//1,/20,
:98A::PAYD//20261112
:16S:SECMOVE
:16S:CAOPTN
-}

Instruction and status (MT565, MT567, seev.033, seev.034)

For CHOS and VOLU events the account owner sends an MT565 (seev.033) before the response deadline. It quotes the event reference in :20C::CORP//, links to the announcement, names the option by number and code (:13A::CAON// and :22F::CAOP//, both exactly as in the MT564) and gives the quantity in :36B::QINS//, or :36C::QINS//QALL for the whole eligible balance.

The custodian answers with an MT567 (seev.034). :25D::IPRC//PACK means accepted; PEND means accepted but waiting, for example for securities to arrive (PENR) or for a certification; REJT means rejected, with a reason such as LATE (market deadline missed), DQUA (quantity) or DSEC (security). A rejected instruction does not exist: send a corrected one. See MT567 instruction rejected.

If no valid instruction arrives, the custodian applies the default option (:25D::IPRC//DFLA in a later MT567 shows that it did). Choosing nothing is a decision too; it should be a deliberate one.

{1:F01FUNDLULLAXXX0000000000}{2:I565CUSTAEADXXXXN}{4:
:16R:GENL
:20C::CORP//DVOP26AEZ016
:20C::SEME//ZI26110300045
:23G:NEWM
:22F::CAEV//DVOP
:16R:LINK
:13A::LINK//564
:20C::RELA//CN26102000123
:16S:LINK
:16S:GENL
:16R:USECU
:35B:ISIN AEZAGT000016
:16R:ACCTINFO
:97A::SAFE//ZAG-SAFE-0001
:16S:ACCTINFO
:16S:USECU
:16R:CAINST
:13A::CAON//002
:22F::CAOP//SECU
:36B::QINS//UNIT/100000,
:16S:CAINST
-}

Payment, confirmation and reversal (MT566, seev.036, seev.037)

On the payment date the custodian posts the proceeds and sends an MT566 (seev.036). It repeats the event and option, gives the confirmed balance in :93B::CONB//, and lists every posting: SECMOVE blocks with :36B::PSTA// (quantity posted) and CASHMOVE blocks with :19B::PSTA// (amount posted), each with a posting date. Cash dividends usually also show gross amount, tax withheld and net amount.

Book from the MT566 and reconcile it with the cash and securities statements. If the issuer’s agent did not pay, or the custodian paid on the contractual date before receiving the funds and the payment has to be undone, the custodian sends an MT566 with 23G:REVR (seev.037) that reverses the earlier posting. Reversals are why the event-processing status :25D::EPRC//RECD (reconciled) in an MT567 matters: it tells you the paid funds were received from the agent.

{1:F01CUSTAEADAXXX0000000000}{2:I566FUNDLULLXXXXN}{4:
:16R:GENL
:20C::CORP//DVOP26AEZ016
:20C::SEME//CC26111200077
:23G:NEWM
:22F::CAEV//DVOP
:98C::PREP//20261112080000
:16R:LINK
:13A::LINK//565
:20C::RELA//ZI26110300045
:16S:LINK
:16S:GENL
:16R:USECU
:97A::SAFE//ZAG-SAFE-0001
:35B:ISIN AEZAGT000016
ZAGTRADER TEST HOLDING PJSC
:93B::CONB//UNIT/100000,
:16S:USECU
:16R:CACONF
:13A::CAON//002
:22F::CAOP//SECU
:16R:SECMOVE
:22H::CRDB//CRED
:35B:ISIN AEZAGT000016
:36B::PSTA//UNIT/5000,
:92D::NEWO//1,/20,
:98A::POST//20261112
:16S:SECMOVE
:16S:CACONF
-}

Controls that prevent corporate action losses

1. Capture every MT564 into one event record per official event, keyed on COAF where present, and link each custodian’s CORP reference to it.
2. Compare the event terms across custodians and with a second source; differences in rates or dates are early warnings.
3. Check the eligible balance against your own position on record date, including pending trades that will create market claims.
4. For CHOS and VOLU events, get the portfolio manager’s decision in writing before the custodian’s response deadline, and send the MT565 with the exact option number and code.
5. Chase every instruction until the MT567 shows PACK; treat REJT as not instructed.
6. On payment date, match each MT566 with the expected entitlement, then with the cash and securities statements.
7. Watch for REVR messages and reverse your own booking the same day.

Corporate actions in ISO 20022

Corporate action messages, like other securities messages, were not part of the November 2025 payments deadline. They remain in use on FIN alongside their seev equivalents. In Europe, the Eurosystem collateral system (ECMS) exchanges corporate action messages in ISO 20022, and CSDs such as LuxCSD aligned their ISO 20022 corporate action messaging with the ECMS launch in June 2025 while continuing to support ISO 15022 for clients.

If you receive both formats, keep one event model inside your system and map both message sets into it. The mapping is not one-to-one, and dates, rates and options are more structured in seev than in the MT. More in ISO 20022 migration for securities and payments.

Questions

What is the difference between ex date and record date?

The ex date is the first trading day on which a buyer no longer gets the entitlement. The record date is the date on which the issuer or CSD looks at its books to decide who is entitled. Trades that are still unsettled across these dates create market claims.

What do MAND, CHOS and VOLU mean in an MT564?

They are the values of :22F::CAMV//. MAND: the event happens and you do nothing. CHOS: the event happens but you choose among options, otherwise the default applies. VOLU: you take part only if you instruct.

Which ISO 20022 message replaces the MT564?

Mostly seev.031 Corporate Action Notification. Eligible balance and entitlement pre-advices (MT564 REPE) map to seev.035, and cancellations or withdrawals of the event to seev.039.

What happens if I do not send an MT565?

For CHOS events the custodian applies the default option, marked :17B::DFLT//Y in the MT564. For VOLU events you simply do not take part. In both cases the custodian may report it in an MT567.

What is the difference between MT564 and MT568?

The MT564 is the structured announcement. The MT568 carries free text: long terms, restrictions or documentation requirements. Narrative that belongs to an announced event should be in the MT564 or seev.031 where possible. See MT564 vs MT568.

How is a corporate action payment reversed?

The custodian sends an MT566 with 23G:REVR (seev.037 in ISO 20022) that refers to the original confirmation. Book the reversal against the original posting and investigate with the custodian why it was reversed.

Messages in this guide

• MT564Corporate Action Notification
• MT565Corporate Action Instruction
• MT566Corporate Action Confirmation
• MT567Corporate Action Status and Processing Advice
• MT568Corporate Action Narrative
• seev.031Corporate Action Notification
• seev.033Corporate Action Instruction
• seev.036Corporate Action Movement Confirmation
• MT548Settlement Status and Processing Advice
• MT535Statement of Holdings

Read next

• From instruction to settled position: MT540-548, sese.023/024/025 and the statements that follow.
• Header, account, holdings, balances, prices, transactions and pending items, and how to reconcile them.
• Securities messages stay on ISO 15022 alongside ISO 20022 after the November 2025 payments switch; the MT to MX map.
• MT564 vs MT568
• MT567 rejected instruction