Improvement in corporate actions information

UniCredit Bank Czech Republic and Slovakia, a.s., pobočka zahraničnej banky
Fri, 28/06/2019

Launch of corporate actions project at the CSD of the Slovak Republic                                                                                                                                                         


The Central Securities Depository of the Slovak Republic (CDCP) is getting ready for the execution of general corporate actions and corporate actions covering re-organisations. The service will be available on members’ client accounts and holders’ accounts.

General corporate action relates to a change in the issue without any movement of securities and any change in the securities’ position such as blocking/de-blocking of securities issue, name change, form change (registered/bearer), change in transferability, de-listing of the issue, extension of the redemption period etc.

Corporate action – re-organisation results in the re-shaping or re-structuring of the securities’ position, such as cancellation of securities and their replacement by different securities or cash. Specifically change of securities’ form (book-entry/physical), liquidation of the company, decrease in bond face value, cancellation of the issue, squeeze-out, worthless securities write-off etc.

Corporate actions (CA) notices will be published in the information system of the CDCP (IS CDCP) and will be directed to CDCP’s participants/members. Their structure will be in line with ISO 20022 and SMPG standards.

Notices will be issued based on information from the issuer and published on the day when CDCP receives them or, at the latest, one day prior to the change. Notices will repeat at the end of each business day until the record date. Confirmation of a CA will be sent on the payment date. Notices will be automatically sent to participants/members responsible for accounts holding the respective securities. Other participants can find them in a special database.

Currently the CDCP is performing internal testing and all necessary adjustments to the IS CDCP system. The launch is planned for September.

This new service will lead to an improvement in corporate actions information even unlisted, which are not centralised in the Slovak market.