Merger (MRGR)

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

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

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

Description:
Exchange of outstanding securities, initiated by the issuer which may include options, as the result of two or more companies combining assets, i.e. an external third-d party company. Cash payment may accompany equity exchange. Mandatory Reorganisation without Options

Best Practice:
When booking a Merger the original contract of the loan should be terminated, and a new contract posted. (COAC-65)