|Course Code: 400
|Duration: 1 day
|CPE Credits: 6
|Prerequisite: Participants should have a solid understanding of equity and fixed income products and the types of U.S. Domestic Corporate Actions
This one-day seminar presents to the participants a view into U.S. Domestic Corporate Actions.
We will complete a deep dive review into the complete suite of US Market driven corporate action types and processes, and will compare and contrast many Corporate Action types and processes, Mandatory and Mandatory with Optional Elections, and Voluntary Corporate Actions, Dividend and Interest processing. We will also discuss the role and impact of Global Clients in all Domestic Corporate Action types in risk management, notifications and response control.
The participants will be provided with detailed information on the types of corporate actions put forth in the U.S. market and will gain an understanding of how to determine and calculate entitlements. The course will conclude with an in-depth review of major and emerging/new corporate actions practices contained in New Products.
Introduction: An overview and Definitions and Terms and Entitlements
- Event Entitlement Considerations: What is an Ex, Record, and Effective Date
- Event Announcement Chains. Identify and discus all Corporate Action Types
- Role of Sub-Custodians and Global Depositories when they hold US Products
- Balancing, Notification and Clients responses and Calculation of Entitlements
- Discussion of Expiration Date Processing and Reviews
- Types of Corporate Actions; Income related, Mandatory, and Voluntary
- The Life Cycle of a Rights Issue. A detailed review of this event type
- DRIPS and Stock Optional Entitlements
- Ex Date, Effective Date and Expiration Date driven events
- Review of Trade and Settlement Date cycles
- How to determine client entitlements from Trading
- Convertibles and Warrant Exercises
- Equity and Fixed Income Product reviews
- Electronic and Manual information source suppliers
- The Role of Exchanges in Entitlements and Information dissemination
- The Role of Global Depositories in Entitlement and Position settlements
- Security identifiers and their impacts
- US Market Analysis
US Corporate Actions: What are we going to review and discuss?
In-depth review of Dividends, Interest, Mandatory Events, Mandatory with Elections Events and Voluntary
Events, Tender Offers
Review of Products, Terms and Conditions of Debt and Equity Products:
Mergers and Acquisitions - What is the Connection to Proxy and Annual
- Cash and Stock Dividends, Dividends with elections: Who determines them and why?
- Stock Splits & Reverse Stock Splits: How are they executed and why?
- Bankruptcies and Liquidations
- Convertible Features on Products: Contingent Convertible Bonds and Preferred Stock
- Calls and Redemptions:Equity & Debt Products
- Rights Issues: End to End review and processing obligations
- Voluntary/Tender Offers, All Types are reviewed and why are they utilized?
- Warrant Issues and Product Exercises: When do they happen and why?
- Bonds/Debt product with Put and Call Features: Why were they implemented?
Balancing, Notification, Clients responses and Calculation of Entitlements
- Referential Data Announcements: Who is your data vendor, Why did you choose them?
- Market Data collection and scrubbing, who is your data vendor? Do they scrub all data?
- Development and Creation of Final Client Notification
- Determination and Calculation of client eligibility and entitlements
- Notification to Investors, who's able to take up the event?
- Is Record Date, Ex-Date or Effective Date driving the action/event
- Communication of Event terms to clients
- Delivery of Materials, what is a Prospectus, and should a client receive it?
- Client election responses, balancing, and reconciliations
Corporate Actions Risks and Impact:
- What are and where are your risks areas?
- Response Collection and Client response tracking and notification
- Calculations of Entitlements and Processing, Posting of Cash and Securities
- Reconciliation and Balancing of entitlements and fractions. What do you do with Fractions?
After completing this seminar, participants will come away with a firm understanding of all aspects of US Domestic
Corporate Actions and will:
- Know and be able to identify and define the major corporate action event types
- Understand each processing requirement of Corporate Action Event Type
- Understand event Announcement Chains. Identify and discus all Corporate Action Types and their processing
- Understand who in operations will be your points of contact
- Review risks related to the processing of corporate action entitlements