Corporate Actions Processing

Price: $995   Register now

Recommended that you register at least two weeks in advance.

Course Features

  • Course date:03/11/2020
  • Course Duration: 1 Day
  • Level: Beginner-intermediate
  • Prerequisites: None
  • Method: Live & Virtual
  • Venue: MicroTek
  • Time: 9:00 am – 5:00 pm
  • Dress Code: Business Casual
  • Category:
  • Certificate: Yes
  • CPE Credits: 7
  • Course Code: 212

Corporate Actions Processing

This one-day program provides a comprehensive overview of major Corporate action event types and the business conditions for each. Corporate Actions (also referred to as Position and Asset Services) is a complex area for Operations departments in financial firms and one that requires close attention to the associated risks and costs. Explore major mandatory and voluntary event types such as mergers, spin-offs and tender offers, and the motivations of issuers and investors. Examine how the collaboration of equity and fixed income business units, sales and trading, investment managers, operations, finance, and risk management ensure successful outcomes of Corporate Action events for broker/dealers, custodians, investment managers and their clients.  Gain an understanding not only of how mandatory and voluntary events are processed in both domestic and international markets, but also of the potential gaps and exposure that create additional risk and the potential for losses.

Learning Objectives

  • Understand the business context for corporate action events in the global capital markets (content includes U.S., domestic, and international processing)
  • Analyze major mandatory and corporate action event types and evaluate their potential outcomes
  • Investigate the impact and relationship of Corporate Action events to Sales and Trading, Financial Advisors, Margin and Collateral, Settlements, and Derivatives
  • Describe the front-to-back transaction lifecycle of a Corporate Action event from event announcement through the final settlement of related cash and securities
  • Acquire the knowledge of, and the understanding of key risk indicators and metrics associated with Corporate Action events.


Section 1:  Corporate Actions Overview

  • Understand equity and fixed income product types subject to corporate action events
  • Define the roles and responsibilities of investment managers, broker/dealers, investment advisers, custodians, prime brokers, issuers of securities, transfer agents, institutional and retail investors in the Corporate Actions “food chain”
  • Review industry infrastructure for the corporate action event processing, including exchanges, clearing houses, and securities depositories, and messaging channels
  • Describe the basic difference between mandatory and voluntary corporate action event types
  • Evaluate sources of market data needed for corporate action event processing


Section 2: Corporate Action Event Definitions and Descriptions

  • Identify the various types of both mandatory and voluntary corporate actions and re-org activity (Mergers, acquisitions, tender offers, bond calls, bankruptcies, rights and warrants exercises, convertible issues, etc.)
  • Examine the characteristics, motivations, business conditions and triggers and the effect on holder’s securities and cash for event types within the above categories, including:
    •  Bond redemptions and callable bonds
    •  Mergers and Acquisitions
    •  Spin-offs
    •  Cash and Stock Dividends, dividends with elections
    •  Stock Split/Reverse Stock Splits
    •  Liquidations
    •  Conversion – Convertible Bonds and Preferred Stock
    •  Subscription Rights Issues
    •  Tender Offers, including Dutch Auctions
    •  Warrant Exercises
    •  Proxy


Section 3:  How Corporate Action Events are Processed

  • Walk-through process flows for Corporate Action Events with comparison of the roles played by the broker/dealer, custodian, investment manager, investor, and industry infrastructure
    • Describe the steps related to income distributions and entitlements in the form of dividends and interest
    • Review voting issues and the proxy process
    • Understand the role of market data vendors, how information related to corporate action events is “scrubbed”, and storage of the “the golden copy” of an event
    • Analyze in detail each if the following:
      • Announcements- how information for corporate actions is received and processed
      • The role of DTCC, SWIFT, and other market infrastructure providers
      • Role of the transfer agent
      • Calculation of eligibility and entitlements
      • Notification of Investors
      • Communication of Event terms
      • How Instructions from investors are communicated
      • Updating books and records
      • Accounting updates and Reconciliation
      • Tax withholding and reclaim
      • Impact of Corporate Actions on Short Selling and Securities Lending
      • Impact of Corporate Actions on Derivatives


Session 4: Corporate Actions Risks and impact: What can go wrong and why?

  • Key areas of market and operational risk and exposure in processing corporate actions
  • Impact of failed trades and failed corporate action events
  • Impact of cancels and corrects, as-of trades, and suspense entries
  • Domestic vs International Corporate Action event processing
  • Schedules and deadlines for processing corporate actions

Technology support needed for corporate actions


  • Charlotte is a broadly accomplished financial services executive with over 25 years of comprehensive experience in delivering innovative and cost-effective operations and technology training solutions for equities, derivatives and fixed income product lines.  Her successful career as a senior-level manager in Operations at Credit Suisse, Paine Webber and Bankers Trust furnishes the industry expertise that …
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