Corporate Actions - Operational Challenges

Next dates: London, 10-11 December

Duration: 14 hours


£1,650* for ICMA members

£1,950* for non-members

*excluding VAT if applicable.

Corporate actions arise on both equity and debt (bond) securities. Even the most basic type of corporate action can prove a challenge from a processing perspective, requiring highly accurate event details combined with accurate (fully reconciled) internal books & records to be certain of controlled and risk-free processing.

Some event types (optional and voluntary events) contain deadlines that increase the risk of processing error, should such cut-off times be missed.

Furthermore, when complex event types are combined with certain trading and operational strategies, the scope for misunderstanding and confusion increases the processing risks further.

Aims of the Course

This course is targeted at an existing corporate action audience and is designed to develop their basic level understanding to the next level. The course addresses two challenging aspects of corporate actions processing, namely:

  1. the complex end of corporate action events (e.g. Impact of Corporate Actions on Option Contracts, and Bond Tender Offers), and
  2. trading strategies (e.g. short selling, and securities lending & borrowing) which have an impact on corporate actions.  
This course is intended to be the natural follow-on to the course Corporate Actions - An Introduction.

Attending the course will help you:
  • Become familiar with a variety of challenging corporate action events
  • Become familiar with trading strategies & operational actions that have a demanding impact on corporate action processing
  • Raise awareness of the possibility that the details of some corporate action events can change during the event
  • Appreciate the risks and associated controls employed in the processing of a range of challenging corporate action events
  • Emphasise the need for complete internal control when processing more complex corporate action events.

Who should attend?

This course is suitable for existing employees that are familiar with basic corporate action processing and who wish to expand their corporate actions and securities operations knowledge.

The course contains essential concepts that impact both trades and positions, in both Front Office as well as in Operations. As such, besides corporate actions personnel, this course is of value to Reconciliation staff, Collateral Management personnel, Risk professionals and Accounting personnel.


Delegates should possess a thorough understanding of basic corporate actions and their processing lifecycle; please refer to the course Corporate Actions - An Introduction.

Programme Recognition

Candidates who attend the Corporate Actions - Operational Challenges programme and are CFA Charter Holders qualify for 13 credit hours which can be used towards study with the CFA Institute. CFA Institute members are encouraged to self-document their continuing professional development activities in their online CE tracker.

Course Trainer
Day One

Overview of Capital Markets (including relevance to Corporate Actions)
  • Debt and Equity Capital Markets
  • Fundamental Concepts
  • Similarities & Differences
  • Debt & Equity Issuance Methods
  • Capital Markets Participants
  • Issuers
  • The Sell-Side
  • The Buy-Side
  • Trading Methods
  • Central Securities Depositories
  • Local Custodians
  • Global Custodians
  • Registrars
  • Coupon Paying Agents
  • Central Counterparties
  • Trade Repositories
  • Regulators
  • Transaction Types
  • Purchases & Sales
  • Repo
  • Securities Lending & Borrowing
  • Securities as Collateral

Failed Trades & Partially Settled Trades
  • Definition of failed trades
  • Description of partially settled trades
  • Treatment of fails in a corporate action
  • Benefit Events
  • Reorganisation Events

Short Selling
  • Definition
  • Purpose
  • Overview of hedge funds & prime brokers
  • Treatment of short sales in a corporate action

Securities Lending & Borrowing

  • Securities Lending
  • Definition
  • Purpose
  • Benefit to Lender
  • Ownership of Lent Securities
  • Lending Methods
  • Impact on Corporate Actions
  • Securities Borrowing
  • Definition
  • Purpose
  • Reasons for Borrowing
  • Ownership of Borrowed Securities
  • Borrowing Methods
  • Impact on Corporate Actions

Special-Cum and Special-Ex Trading
  • Definition
  • How Such Trades are Identified
  • Impact on Corporate Actions

Australian Dividend Tax
  • Definition of Withholding Tax
  • When Withholding Tax is Charged
  • Treaty and Non-Treaty Rates
  • How Correct Tax Rates are Applied
  • Withholding Tax in Australia
  • Fully Franked Dividends
  • Partially Franked Dividends
  • Unfranked Dividends
  • Impact on Non-Resident Shareholders

Depositary Receipt Issuance Fees
  • Definition of ADRs
  • ADR creation
  • Benefits of ADRs
  • Definition of Issuance Fees
  • When Issuance Fees are Charged

UK Stamp Duty (on New Stock)
  • Definition of Stamp Duty
  • Why Charged
  • When Charged for Trading
  • When Charged on Corporate Actions

Day Two

Warrant Exercise
  • Description of Warrants
  • Call Warrants & Put Warrants
  • Single Stock Warrants & Index Warrants
  • Exercise Procedures
  • Maintaining Internal Control

Impact of Corporate Actions on Option Contracts
  • Description of Put/Call Options
  • Open & Closed Option Transactions
  • Covered & Naked Option Positions
  • Option Exercises and Assignments
  • Impact of Pro-Rata & Non Pro-Rata Events
  • Examples: Stock Splits, Bonus Issues
  • Examples: Reverse Splits, Rights Issues

Accelerated Rights Issues
  • Introduction to ARI (RAPIDs)
  • Characteristics vs Conventional Rights Issues
  • Advantages/Disadvantages
  • Issue Stages & Sequence
  • Treatment of Unsubscribed Shares (Bookbuild)
  • Result of Bookbuild

Rights Issues with Preferential Subscription Rights
  • Definition of Preferential Subscription Rights
  • Characteristics of Irreducible Offer
  • Characteristics of Reducible Offer
  • Advantages/Disadvantages

Financial Restructuring (Bonds & Equity)
  • Definition of Financial Restructuring
  • Purpose of Exchange Offers
  • Analysis of Offer Involving Debt & Equity
  • Response Deadlines
  • Fixed-Price versus Fixed-Spread Offers
  • Participation Procedure Options
  • Definition of Exchangeable Bonds

Share Capital Decrease
  • Definition of Issued Share Capital
  • Issuer’s Purpose
  • Capital Decrease with Capital Repayment
  • Capital Decrease without Capital Repayment
  • Full versus Partial Share Quantity
  • Impact on Share Par Value

Interest on Equity Capital
  • Definition of Interest on Equity Capital
  • Issuer’s Purpose
  • Initial Rate per Share
  • Restated Rate per Share
  • Withholding Tax Implications

Mortgage-Backed Securities: Interest & Capital
  • Definition of MBS
  • Scheduled Income & Capital Cashflows
  • Prepayment
  • Pool Factors
  • Impact of Prepayment on Income & Capital

Bond Tender Offers
  • Definition of Bond Tender Offer
  • Event Announcement & Conditions
  • Treatment of Offer in Various Scenarios
  • Buy Settled Before Record Date
  • Repo Outstanding Beyond Record Date
  • Sec’ Loan Outstanding Beyond Record Date
  • Collateral Outstanding Beyond Record Date
Details of the next course


10-11 December 2020



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For security reasons, delegates who have not registered in advance will not be admitted to this course.  Delegates will be required to provide photo identification on arrival, to ensure entry.


ICMA Members: £1,650 + VAT if applicable
Non members: £1,950 + VAT if applicable


Should you have any queries, please contact
29-30 November 2018

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Lene Nomark Sørensen

Organisation: Danske Bank
Job title: Senior specialist

Describe what you do on a day to day basis in your job:
We process all kinds of dividends, reinvestment schemes, interest and redemption payments and coupon claims/securities lending. We inform all our clients in different regions about all mandatory and optional events.

Reasons for taking the course:

To be aware of possible risks through not acting correctly and in a timely manner when operating with the many kinds of corporate action types.  It is important that the surrounding departments, e.g. settlement departments and your dealers, as well as your counterparty, act on these events.

Benefits of taking this course:
Bigger understanding of special issues. Interesting to hear from other organisations and be made aware that in some cases we face the same problems, albeit from a different perspective. I would like a follow up course as there are many other aspects to discuss. We were encouraged to come up with issues before the course, and during the course I found that when I came home and discussed some of the issues in more detail with my colleagues, there were additional areas we would also be interested in discussing.

Nickolay Nickolovski

Organisation: Consileon Business Consultancy GmbH
Job title: Consultant

Describe what you do on a day to day basis in your job:
Discussion / agreement of the project organisation together with the sponsors of the project;
Translation of top management strategy into product development items / roadmap planning;
Requirements analysis and solution specification in close cooperation with business and IT units;
Review-workshop for alignment and adjustment of target processes;
Preparing and conducting Information-Sessions for the operational units
Impact analysis of internal processes, created in close cooperation with all operational departments.

Reasons for taking the course:
Interest in the area of Corporate Actions and extension of current CA knowledge.

Benefits of taking this course:
Detailed explanation of selected parts of the Corporate Actions topic;
Better understanding of the topic;
Well discussed and explained possible problems from operational perspective of the different types of Corporate Actions.

Emer O’Connor

Organisation: Depfa Bank
Job title: Senior Associate Security Settlements Coupons & Redemptions

Describe what you do on a day to day basis in your job:
Income and Redemptions on all bonds;
Process and interpret all Corporate Actions received from custodians and circulate internally to a number of teams;
Investigate all cash and custody breaks on bonds and liaise with internal departments and also external counterparts.

Reasons for taking the course:
To gain further knowledge and an overall better understanding of how Corporate Actions operate and to gain an understanding of the full flow of Corporate Actions.

Benefits of taking this course:

I now understand how they work and also appreciate other organisation’s frustrations when dealing with Corporate Actions.

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