Conversion (CONV1)

SFTR Report - ETRM / NEWT | Corporate Action Cluster - Return and New Trade | Cash Move - N>

Status: Best Practice Finalised, Last Updated: 24/05/2021

SFTR Report - ETRM / NEWT | Corporate Action Cluster - Return and New Trade | Cash Move - N

Description:
Conversion of securities ( generally convertible bonds or preferred shares) into another form of securities ( usually common shares) at a pre-stated price/ ratio. (initiated by the issuer)

Best Practice:
When booking a Conversion the original contract of the loan should be terminated, and a new contract posted. (COAC-53)