Corporate Actions - A Guide to Securities Event Management ppt

[...]... software corporate action data providers (vendors) – allowing a greater appreciation of managing corporate action events, after the event data have been supplied to their clients management consultants – enabling peer-level discussion with clients and a greater understanding of clients’ aims in this business area, particularly in light of the increased focus on financial reporting via the Sarbanes Oxley act... trading and settlement activity, but also the accurate processing and recording of the impact of corporate action events on those securities and cash positions This chapter serves to introduce the fundamental concepts and terminology associated with the processing and management of corporate actions 1.2 DEFINITION OF CORPORATE ACTIONS A corporate action is an event in the life of a security (typically)... London Having gained a detailed understanding of various back office tasks through many years of hands-on experience, he assumed managerial responsibility for a number of operational areas In recent years, Michael has worked as head of business consultancy within a global computing services firm, and is now an independent analyst and trainer Michael’s areas of expertise include all aspects of the trade lifecycle... explaining concepts will allow such concepts to be applied to variations of, and new types of, corporate action We have in general attempted to develop the reader’s knowledge gradually by describing the various components of a topic conceptually, providing examples and making forward reference to later topics, and backward reference to earlier topics Our objective has been to enable the reader to gain... who are new to the securities industry and who wish to gain a thorough understanding r of a major aspect of securities operations (such readers are recommended first to read Securities Operations: a Guide to Trade and Position Management in order to gain a sufficient background understanding of the topic of corporate actions) ; those who work within securities industry firms (including investment banks,... lifecycle and related activities including operational risks and control Recent assignments include the offshoring of operational activities to India and operational risk analysis (the Sarbanes Oxley act) In addition, he creates and delivers training courses on the workings of the securities industry and associated operational aspects to audiences around the world Michael is author of Securities Operations:... Entitlement to Takeover Events 23.3 Communication of Event Information 23.4 Management of Election Decisions 23.5 Managing Unsuccessful Takeovers 23.6 Over-Acceptances 23.6.1 Over-Acceptance of a Specific Option 23.6.2 Over-Acceptance of a Partial Offer 23.7 Calculation of Resultant Entitlements 23.7.1 Voluntary Stage 23.7.2 Mandatory Compulsory Acquisition Stage 23.8 Passing of Internal Entries 23.8.1 Voluntary... nature of the corporate action These different lifecycles can be categorized as follows: r Mandatory r Mandatory with Options Basic Corporate Action Concepts 7 r Voluntary r Multi-stage r Issuer Notices Each of these is described below 1.5.1 Mandatory (Generic) Lifecycle For those events that are defined as mandatory, the position holder has no choice as to whether and/or how it participates in the event. .. 1.5.2 Mandatory with Options Lifecycle By contrast to standard mandatory events, these events will offer the position holder a choice as to how it participates in the event The position holder will be given two or more alternatives as to the combination of securities and/or cash that it will receive as a result of the corporate action The lifecycle of this event will incorporate the steps of the mandatory... positions are to ensure they receive the assets due to them, whilst controlling the numerous risks that inevitably exist in the processing of corporate actions This book aims to demystify the topic of corporate actions and to make the subject more easily understood by a broad audience The authors’ intention is to explain the topic from first principles, and to take the readers to a point where they have a very . Participant Static Data 43 4.3.3 Changeable Detailed Attributes of Participant Static Data 44 4.3.4 Additional Corporate Actions Participant Static Data 45 4.4 Sources and Maintenance of Static Data 45 4.4.1. Data 40 4.2.4 Additional Corporate Actions Securities Static Data 41 4.3 Participant Static Data 41 4.3.1 Common Attributes of Participant Static Data 42 4.3.2 Detailed Attributes of Participant. 1951– Corporate actions : a guide to securities event management / Michael Simmons & Elaine Dalgleish. p. cm. ISBN 13 97 8-0 -4 7 0-8 706 6-2 ISBN 10 0-4 7 0-8 706 6-4 1. Securities industry. 2. Corporations—Finance Management.