Scope - Clearstream
Scope - Clearstream
Scope - Clearstream
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MARKET PRACTICE BOOK - CORPORATE ACTIONS<br />
40<br />
3.2.2.2. Information flow for Predictable events occurring upon a triggering event or at the<br />
option of the Issuer<br />
This section deals with Predictable events that are triggered by an underlying event (such<br />
as market price movement,…) and/or Predictable events that may occur within the lifetime<br />
of a security at the option of the Issuer.<br />
a<br />
Determination<br />
Agent<br />
Issuer<br />
a<br />
Triggering Event/<br />
election by Issuer<br />
Issuer<br />
(per T&C)<br />
CD/CSP/PPA<br />
Determination<br />
Agent (if<br />
applicable)<br />
or Issuer<br />
PPA<br />
(relevant only<br />
if PPA different<br />
from CD/CSP)<br />
PPA<br />
Communication rarely occurring<br />
Step 1: Corporate action events identified by PPA/CD/CSP based upon T&C (could occur at any time,<br />
‘flagged’ but not ‘diarised’)<br />
b’<br />
CD/CSP<br />
ICSD<br />
ICSD<br />
Step 2: Deadlines and details confirmed once triggering/external event<br />
happens and/or option is ‘exercised’ by the Issuer<br />
Nature of<br />
Initiator/Party Recipient Timing Actions<br />
information<br />
Agents<br />
n/a<br />
PPA<br />
CD/CSP<br />
At issuance of<br />
securities<br />
At issuance, and<br />
before the start of<br />
any exercise period<br />
Same Business Day<br />
notification (once<br />
triggering event<br />
occurs and/or Issuer<br />
exercises option)<br />
Same Business Day<br />
notification (once<br />
triggering event<br />
occurs and/or Issuer<br />
exercises option)<br />
b<br />
Defined in T&C<br />
Based on securities<br />
new issues<br />
documentation/T&C<br />
Complete<br />
information (refer to<br />
section 2.2.1.3.)<br />
c<br />
ICSDs’ account<br />
holders<br />
Describe the corporate action event in T&C<br />
(see Annex 6A)<br />
Step1<br />
• Flag info based on T&C<br />
• Monitor timing of corporate action<br />
events<br />
• Monitor relevant external factors (such<br />
as basket of securities, index, underlying<br />
assets, etc) used to determine a<br />
triggering event or option open to Issuer<br />
• Provide information to the PPA relating<br />
to variable features of corporate action<br />
events, including changes and updates<br />
to the documentation, within the<br />
same day (see Annex 6B)<br />
• Confirm deadlines and details to the<br />
PPA once triggering event happens<br />
and/or Issuer exercises option<br />
(see Annex 6B)<br />
Step 2<br />
• Confirm deadlines and details to<br />
CD/CSP<br />
• Provide information to CD/CSP,<br />
including all changes and updates to<br />
the documentation<br />
(see Annex 6B)
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