Repo Operations

General Overview

• Definition and economic justifications of corporate actions
• Key players: roles and missions
• Roll-out of corporate actions
• Various corporate actions: automatic / optional, capital / income, ...
• Conveyance rules, entitled beneficiaries
• Dates : ex-date, record date, payment date
• Corporate actions on Stocks / flows

Types of corporate actions

• Income : coupons, dividends, optional dividends, dividend premiums

• Practical workshop

• Optional dividend
• Capital Transactions
• Capital increase with subscription rights
• Free allocation
• Spin-off
• Split
• Converting bonds into equity
• Exercising warrants

• Practical workshop

• Calculate the value of allotment rights, subscription amounts and bond conversions
• Capital increase with preferred subscription rights

Public Offerings

• Takeover bids, exchange offers
• Simplified tender offers

• Practical workshop

• Tender offer

Back office administration of corporate actions

• Announcements, investors' information and responses: transmission modes, controls, ...
• Domestic and international corporate actions: SWIFT messages, ...
• Corporate actions accounting rules by custodian account keeper
• Tax treatment : coupons, dividends, takeover bids, exchanges
• Operational risks

• Practical workshop

• Analysis of SWIFT messages

Impact of corporate actions on repos and securities lending

• Practical workshop:

• Analyse a repo master agreement and the impact of corporate actions

Projects

• Single Platform : impacts on corporate actions
• Target 2 Securities