Cash Distribution From Non Eligible Securities Sale (DRCA):

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• Cash Distribution From Non Eligible Securities Sale (DRCA):

Cash Distribution From Non Eligible Securities Sale (DRCA)

Status: Finalised Last Updated: 24 May 2021

SFTR Report – NONE | Corporate Action Cluster – Economic outside SFT | Cash Move – Y

Description:
Distribution to shareholders of cash resulting from the selling of non-eligible securities, for example, in the frame of a depositary receipt program.

Best Practice:
For cash payments which do not affect the open SFT, the beneficial counterparty is contractually due payment in full on pay date. If payment is not received, counterparties should raise a query on pay date + 1.

A claim needs to submitted via email as soon as possible after announcement date in order for a payment to be made, the minimum field list for claims can be found here.

If payments are not made on pay date the recipient counterparty should provide a valid reason for non-payment.

In addition to reviewing Contract Compare prior to and on pay date, Contract Compare should be checked on pay date+1 to ensure newly created positions are reconciled. Any differences need to be escalated to counterparties immediately. (COAC-33)