Entitlement Compensation Rules - New Zealand
Bonds
| Market compensation basis: | Settlement Date | |
| Automatic Compensation Managed by Local CSD: | No | |
| Restriction on custody events/transaction types: Entitlement compensation applies to all trades (free of payment, against payment, physical). For some events, such as offers, election options etc., no provision is made for compensation of cum-trades. | ||
| Additional information: The CBL depository proactively seeks to claim or to pay compensation if, based on CBL’s settlement instructions, a trade is to settle cum-entitlement but settlement actually occurs on/after the Record Date. | ||
| Service offered by CBL: | Adjustment is performed based on information received from the depository. | |
Equities
| Market compensation basis: | Trade Date | |
| Automatic Compensation Managed by Local CSD: | No | |
| Restriction on custody events/transaction types: Entitlement compensation applies to all events whereby an actual entitlement is derived as a result of an event (for example, bonus issue, rights issue, in-specie distribution, dividend etc.). There are, however, some events in which the settled Record Date entitlement is final and there is no provision of compensation for cum-trades (for example, buyback, priority offer, share purchase/sale offer etc). Entitlement compensation will normally be treated the same for both free of and against payment trades. However, cash entitlements for free of payment trades will usually take place on the relevant Payment Date rather than on the trade Settlement Date. Physical trades will also be handled in the same manner as described above. | ||
| Additional information: CBL’s depository proactively seeks to claim or to pay compensation if, based on CBL’s settlement instructions, a trade is to settle cum-entitlement but settlement actually occurs on/after the Record Date. | ||
| Service offered by CBL: | Adjustment is performed based on information received from the depository. | |