MT565 Corporate Action Instruction

When MT565 is used

When an MT564 announces an event flagged :22F::CAMV//CHOS (mandatory with options, for example a dividend with a currency or stock option, DVOP, or a rights exercise, EXRI) or :22F::CAMV//VOLU (voluntary, for example a tender offer, TEND, or an issuer buyback, BIDS), the account owner decides what to do and sends an MT565 to the account servicer. The account servicer validates it, usually blocks the instructed securities, aggregates instructions from its clients and instructs the next party up the chain before the market deadline.

The MT565 quotes the event by its CORP reference and the chosen option by its number (13A::CAON) and code (22F::CAOP), exactly as given in the MT564. The quantity in 36a::QINS must not exceed the eligible or uninstructed balance on the account. One MT565 covers one safekeeping account and one option; to split a holding across options, send one MT565 per option.

The account servicer answers with an MT567: accepted (PACK), pending, rejected (REJT with a reason) and later, if the holder never instructed, default action applied (DFLA). After the event is paid, an MT566 confirms what was booked.

To withdraw or change an instruction, the account owner sends an MT565 with function CANC that links to the original by its SEME reference in :20C::PREV//. Whether withdrawal is possible is stated per option in the MT564 (:17B::WTHD//Y or N), and many markets make instructions irrevocable after a date. A changed instruction is a cancellation followed by a new MT565.

Some events require beneficial owner details or certification, for example for tax relief or restricted offers. These go in the optional BENODET sequence, or in narrative when the account servicer asks for it. See the corporate action lifecycle guide.

MT565 format: sequences and fields

Rules worth knowing

• Copy the CORP reference, the option number and the option code from the latest MT564. If the MT564 was replaced, check that the option you instruct still exists and is active (no :22F::OSTA//INTV or CANC).
• Instruct no more than the eligible or uninstructed balance. Securities pending receipt, on loan or used as collateral at the deadline usually do not count.
• Send instructions before the response deadline in the MT564 (98a::RDDT), not the market deadline (MKDT). Late instructions are rejected or handled on a best effort basis (ADEA or LATE in the MT567).
• A cancellation is an MT565 with 23G CANC that repeats the instruction details and links to the original SEME in :20C::PREV//. It is a request: the account servicer confirms it with an MT567 of function CAST.
• For a VOLU event, no instruction means no participation. For a CHOS event, no instruction means the default option (17B::DFLT//Y in the MT564) applies.

MT565 example

A third party has made a cash tender offer for shares of Gulf Test Industries, and ZagTrader Test Bank (ZAGTAEADXXX), the custodian, has announced it in an MT564 with two options: 001 CASH (tender) and 002 NOAC (no action, the default). The asset manager FUNDLULLXXX decides to tender all 40,000 shares held in its fund’s account and sends this MT565.

{1:F01FUNDLULLAXXX0000000000}{2:I565ZAGTAEADXXXXN}{4:
:16R:GENL
:20C::CORP//TE26ZAG000456
:20C::SEME//FUND565000001
:23G:NEWM
:22F::CAEV//TEND
:98C::PREP//20261021103000
:16R:LINK
:13A::LINK//564
:20C::RELA//ZT564TE0000001
:16S:LINK
:16S:GENL
:16R:USECU
:35B:ISIN AEZAGT000024
GULF TEST INDUSTRIES PJSC
:16R:ACCTINFO
:97A::SAFE//ZAG-SAFE-0001
:93B::ELIG//UNIT/40000,
:16S:ACCTINFO
:16S:USECU
:16R:CAINST
:13A::CAON//001
:22F::CAOP//CASH
:36B::QINS//UNIT/40000,
:16S:CAINST
-}

Line by line

BICs, ISIN and references are made up; the ISIN carries a valid check digit.

The custodian would answer with an MT567 INST message: :25D::IPRC//PACK if accepted, or :25D::IPRC//REJT with a reason such as LACK if the quantity exceeds the eligible balance.

Common errors and rejects

1. Instructed quantity exceeds the eligible balance (LACK)

   The account holds fewer securities than instructed, often because a sale settled, a loan was not recalled or another instruction already used part of the balance. Check the uninstructed balance in the latest MT564 or a reminder, then resend for the right quantity.

   How to fix it

2. Option number and code do not match (NMTY, OPNM, OPTY)

   The CAON and CAOP pair must be exactly as in the latest MT564. A replacement may have changed or cancelled options; instruct against the current version.

   How to fix it

3. Unknown event or account (EVNM, SAFE)

   The CORP reference is mistyped or belongs to another custodian’s numbering, or the safekeeping account is not one the account servicer knows. Copy CORP and account from the MT564 you received.

   How to fix it

4. Instruction after the deadline (ADEA, LATE)

   Received after the account servicer’s response deadline (ADEA, perhaps processed on a best effort basis) or after the market deadline (LATE, rejected). Build your internal deadlines from 98a::RDDT, not MKDT.

   How to fix it

5. Missing beneficial owner details or certification (BOIS, CERT, MCER)

   Some events require beneficial owner information or certification, for example for offer restrictions or tax relief. Add the BENODET sequence or the narrative the account servicer asks for in its MT564.

6. Cancellation without a link to the original

   An MT565 CANC that does not quote the original instruction’s SEME in :20C::PREV// cannot be matched. The account servicer may also reject it because the instruction is already being processed (DPRG) or is irrevocable (INIR).

   How to fix it

MT565 in ISO 20022

The ISO 20022 equivalent is seev.033 Corporate Action Instruction. An MT565 with function CANC maps to a separate message, seev.040 Corporate Action Instruction Cancellation Request, and its status comes back in seev.041 instead of an MT567 CAST.

Securities messages were not part of the November 2025 payments deadline: the MT565 stays in use on FIN, and many account servicers accept both formats. CSDs serving the Eurosystem collateral management system have added ISO 20022 corporate action messages under the SCoRE standards, and offer them to clients alongside the MT565.

Related messages

• MT564Corporate Action Notification
• MT567Corporate Action Status and Processing Advice
• MT566Corporate Action Confirmation
• MT568Corporate Action Narrative
• seev.033Corporate Action Instruction
• seev.031Corporate Action Notification

• MT567 rejected instruction
• Announcement, entitlement, instruction, status, payment and reversal with MT564-568 and seev messages.

Codes used in MT565

• TEND
• EXRI
• DVOP
• BIDS
• EXOF
• CONS

MT565 questions

When do I need to send an MT565?

Whenever an MT564 announces an event as CHOS (mandatory with options) or VOLU (voluntary) and you want something other than the default. For MAND events no instruction is needed.

What happens if I do not send an MT565?

For a VOLU event you do not take part. For a CHOS event the account servicer applies the option flagged :17B::DFLT//Y in the MT564 and may tell you with an MT567 showing DFLA (default action).

How do I cancel or change an MT565?

Send an MT565 with 23G CANC that links to the original SEME in :20C::PREV//, then a new MT565 if you want a different election. Check first that the MT564 allows withdrawal (17B::WTHD) and that the deadline has not passed.

Can one MT565 cover several options or accounts?

No. One MT565 covers one safekeeping account and one option. Split elections need one message per option.

What is the MX equivalent of MT565?

seev.033 for an instruction and seev.040 for an instruction cancellation request.