Conversion (CONV1):

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Conversion (CONV1)

Status: Finalised Last Updated: 24 May 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)