Operational Processing

UTI Generation for Corporate Actions

Status: Best Practice Finalised, Last Updated: 28/01/2022

Description:
Some corporate actions will require a UTI to be assigned to the new trade for SFTR reporting.

This applies to all new trades which are then subsequently reported under a NEWT message to the TR.

UTI Creation should be in adherence with the IOSCO recommendations 2.

Borrowers and lenders should agree at a relationship level, who will be responsible for UTI creation of all transactions under a securities lending agreement. It is expected that in most circumstances the lender will assume the responsibility of UTI creation unless the lender is unable to. As data is likely to flow from lender to borrower but less likely to flow the other way, it is expected that in most cases it will be the entity that is mostly a lender in the relationship (or its agent) who creates the UTI.

The entity responsible for UTIs will create the UTI for all transactions, including where the underlying beneficial owner is a Non-Financial Counterparty or an entity that does not have a reporting obligation.

Best Practice:
The same practices applied to the creation of a UTI on the parent SFT trade, are to be applied to the corporate action. If a firm has created the UTI for the parent, they will be responsible for the UTI on the new corporate action trade. (COAC-115)

Execution Timestamp

Status: Best Practice Finalised, Last Updated: 28/01/2022

Description:
All new trades will require a NEWT message to be sent which includes an execution timestamp. The execution timestamp must be matched to within an hour.- Currently, CA bookings are booked as and when operational teams are processing them. This is often donemanually and in isolation between counterparties.

There is no official execution time for a CA booking, because it is merely a downstream effect of an event and not a new 'trade' - however these effects are reported as trades to the TR.

All CA bookings should have Field 2.12 (Execution Timestamp) populated as follows.

Best Practice:
Where the data provision to borrowers is provided by undisclosed agent lenders, the Field 2.12 (Execution Timestamp) should be aligned to that provided by the agent lender or, where no explicit bilateral agreement exists, which might otherwise indicate the provider of the execution timestamp for corporate action bookings, the timestamp should be standardised, with the "Time" part equal to 01:01:01 and the "Date" part equal to the Pay date of the event.

In all cases Field 2.12 (Execution Timestamp) should be dated with the pay date of the event. (COAC-124)