Corporate Action Harmonisation – Changes in processing of warrants
Clearstream Banking1 informs clients that, as part of its Corporate Action Harmonisation (CAH) project, the processing of warrants will be harmonised across all markets by
3 July 2023.
For markets processed by the KADI system (that is, German, Finnish, U.S. and Swiss securities), this will already come into effect on
12 June 2023.
Future process
Mandatory warrant with choice at issuer level
Clearstream Banking will provide EXWA MAND with two options in the Corporate Action Notification. When maturity is reached, EXWA MAND will remain and one of the options will stay active while the other will become inactive. The same BID-identifier will be used in all messages during the event.
When the option is known at maturity, the deactivated option in the MT564 is marked by the qualifier :22F::OSTA//INTV (option status: Inactive) while the active option receives the qualifier :17B::DFLT//Y (Default Option: Yes).
1. Withdrawal with cash payment
Step | Reporting |
Corporate Action Notification | MT564 with EXWA MAND and the options |
Maturity | MT564 with EXWA MANDand the options |
Payment confirmation | MT566 with EXWA and option E-EXER |
2. Worthless withdrawal
Step | Reporting |
Corporate Action Notification | MT564 with EXWA MAND and the options |
Maturity | MT564 with EXWA MAND and the options |
Payment confirmation | MT566 with EXWA and option E-LAPS |
Voluntary events with a mandatory ending
Clearstream Banking will provide EXWA CHOS with two options in the Corporate Action Notification. When maturity is reached, EXWA CHOS will remain and one of the options will stay active while the other will become inactive. The same BID will be used in all messages during the event. The client has the possibility to instruct their choice before the expiration date. In this case, a response deadline (RDDT) is included.
When the option is known at maturity, the deactivated option in the MT564 is marked by the qualifier :22F::OSTA//INTV (option status: Inactive) while the active option receives the qualifier :17B::DFLT//Y (Default Option: Yes).
1. Withdrawal with cash payment
Step | Reporting |
Corporate Action Notification | MT564 with EXWA CHOS and the options |
Maturity | MT564 with EXWA CHOS and the options |
Payment confirmation | MT566 with EXWA and option E-EXER |
2. Worthless withdrawal
Step | Reporting |
Corporate Action Notification | MT564 with EXWA CHOS and the options |
Maturity | MT564 with EXWA CHOS and the options |
Payment confirmation | MT566 with EXWA and option E-LAPS |
Voluntary event with choice where client can instruct
As per the existing process, Clearstream Banking will provide EXWA VOLU with two options in the announcement. Clients can send an MT565 to choose the exercise option. The same BID will be used in all messages during the event. In comparison to today, the reporting does not change.
Step | Reporting |
Corporate Action Notification | MT564 with EXWA VOLU and the options |
Maturity | Default option will be applied at the end of maturity (mostly NOAC) |
Payment confirmation (if option EXER is chosen) | MT566 with EXWA and option E-EXER |
For further information, clients may contact OneClearstream@clearstream.com, Clearstream Banking Client Services or their Relationship Officer.
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1. This Announcement is published by Clearstream Banking AG (CBF), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, registered with the Commercial Register of the District Court in Frankfurt am Main, Germany, under number HRB 7500.