19.1 Process Corporate Action Event Stages
This topic describes the processing of corporate action event stages.
The three stages are:
- Corporate action initiation
- Corporate action collection
- Corporate action liquidation
Table 19-1 Corporate Action Events
Term | Definition |
---|---|
Corporate action Initiation |
At the time of defining new security, you can indicate whether corporate actions have to be auto-initiated. A check box is available where you can make this specification. If you leave this box unchecked, then you will have to manually initiate the action. |
Corporate action Collection |
Corporate action collection can be manual or automatic. This specification is done for every security at the time of defining SK locations. When the corporate action collection, for a particular security, is indicated as automatic then, the Beginning of Day programs will pick up all the corporate actions due and trigger the event. You have to trigger the event manually if the automatic process is not indicated. It is important to note that the collection event is triggered only after the initiation event is complete. |
Corporate action Liquidation |
Securities can be liquidated automatically or manually. Deals specified, as having an automatic mode of liquidation, will be automatically liquidated on Event Date, during the Beginning of Day processing. Automatic or manual Liquidation of corporate actions is specified at the portfolio definition level. If you specify that corporate actions have to be liquidated automatically, then the appropriate liquidation event for the corporate action is triggered. In the case of manual liquidation of corporate actions, only those actions, which have undergone the tear-off event, will be eligible for liquidation. If more than one event is due for liquidation, for the same security, then you have to trigger each event one after the other. |
Please remember |
Liquidation for a corporate event is done automatically, only if you check the Auto liquidate Corporate Events field, in the Portfolio Definition screen. If for a portfolio you have unchecked the auto liquidate option, then the liquidation event is liquidated manually. If the automatic disbursement fails, then the event will be identified for processing in the next Event Selection program. The same program can, however, be forced liquidated through manual disbursement. |
Parent topic: Maintain and Process Corporate Actions