Understanding dedicated corporate action events

LUSID is transitioning to a system where each kind of corporate action has a dedicated event, enabling you to handle those events in a seamless and consistent manner.

Important: Corporate action events are disabled by default. To enable them, register a recipe with every portfolio you wish events to impact. More information.

For example, LUSID emits a cash dividend event on the ex-dividend date of a cash dividend corporate action providing you manually load that corporate action into a source registered with the parent portfolio. In addition, we provide:

A default cash dividend transaction template that automatically generates a transaction for the cash dividend amount.
Recommendations for a cash dividend transaction type that confers a typical economic impact for a transaction representing a cash dividend.

You can use the default transaction template for cash dividend events, or create your own. You can configure the transaction type to have any economic impact you like.

When you enable this feature in your LUSID environment, for each portfolio subscribed to the corporate action source and with a holding in the underlying instrument, LUSID automatically:

Generates an output transaction from the transaction template scaled to your holding in that portfolio on the ex date, and enriched with extra information such as gain/loss or a tax calculation.
Implements the economic impact prescribed by the transaction type, for example adding the dividend amount to a particular cash balance.

Note you can override an event for a particular portfolio by loading an event instruction.

Recommended reading: Handling a cash dividend corporate action event

The following dedicated events are available or planned for instruments of type Equity and SimpleInstrument. For more information, start by calling the GetTransactionTemplateSpecification API for that event. If a particular event is not available yet, you can continue modelling any kind of corporate action as a TransitionEvent.

Note: Instruments other than Equity that mature and therefore have an intrinsic lifecycle automatically trigger LUSID to emit events. More information.

Corporate action	Dedicated event	Participation	Choice(s)	Transaction type(s) mandated by default transaction template *	Status
Accumulation (ACCU)	`AccumulationEvent`	Mandatory	Cash	FundAccumulationIncome	Available
Bonus issue (BONU)	`BonusIssueEvent`	Mandatory	Security	BonusIssueAdditionalUnits (if cash or security) BonusIssueCashInLieu (if security and fractional units) BonusIssueCashOffer (if cash)	Available
Bonus issue (BONU)	`BonusIssueEvent`	Mandatory with choices	Cash, Security, Lapse		Available
Call on intermediate securities (EXRI)	`CallOnIntermediateSecuritiesEvent`	Mandatory with choices	Option exercise, Lapse	ExerciseIntermediateSecurities (if option exercise) ExpireIntermediateSecurities	Available
Capital distribution (CAPD)	`CapitalDistributionEvent`	Mandatory	Cash	DividendIncome	Available
Capital distribution (CAPD)	`CapitalDistributionEvent`	Mandatory with choices	Cash (choice of currencies)	DividendIncome	Available
Cash dividend (DVCA)	`CashDividendEvent`	Mandatory	Cash	DividendIncome	Available
Cash dividend (DVCA)	`CashDividendEvent`	Mandatory with choices	Cash (choice of currencies)	DividendIncome	Available
Dividend option (DVOP)	`DividendOptionEvent`	Mandatory with choices	Security or cash	DvopCashIncome DvopSecurityOption (if security)	Available
Dividend reinvestment (DRIP)	`DividendReinvestmentEvent`	Mandatory with choices	Security or cash	DripCashIncome DripSecurityReinvestment (if security)	Available
Intermediate securities distribution event (RHDI)	`IntermediateSecuritiesDistributionEvent`	Mandatory	Security	IntermediateSecurityUnits IntermediateSecurityCashInLieu (if fractional units)	Available
Merger (MRGR)	`MergerEvent`	Mandatory	Security or cash & security	MergerRemoveExisting (if security) MergerAdjustCost (if cash & security) MergerReceiveCash (if cash or cash & security) MergerReceiveUnits (if security or cash & security) MergerCashInLieu (if fractional units)	Available
Merger (MRGR)	`MergerEvent`	Mandatory with choices	Security, cash & security, cash		Available
Reverse stock split (SPLR)	`ReverseStockSplitEvent`	Mandatory	Security	ReverseStockSplitUnitReduction ReverseStockSplitCashInLieu (if fractional units)	Available
Scrip dividend (DVSC)	`ScripDividendEvent`	Mandatory	Security	ScripDividendAdditionalUnits ScripDividendCashInLieu (if fractional units)	Available
Spin-off (SOFF)	`SpinOffEvent`	Mandatory	Security	SpinOffAdjustCost SpinOffNewUnits SpinOffCashInLieu (if fractional units)	Available
Stock dividend (DVSE)	`StockDividendEvent`	Mandatory	Security	StockDividendAdditionalUnits StockDividendCashInLieu (if fractional units)	Available
Stock split (SPLF)	`StockSplitEvent`	Mandatory	Security	StockSplitAdditionalUnits StockSplitCashInLieu (if fractional units)	Available
Payment in kind (PINK)	TBD	Mandatory	Security	TBD	Roadmap
Payment in kind (PINK)	TBD	Mandatory	Other	TBD	Roadmap
Financial default (DFLT)	TBD	TBD	TBD	TBD	Q4 2024
Tender/Takeover (TEND)	`TenderEvent`	Mandatory, Voluntary	Security, Cash & security, Cash	`TenderRemoveExisting` (if security) `TenderAdjustCost` (if cash & security) `TenderReceiveCash` (if cash or cash & security) `TenderReceiveUnits` (if security or cash & security) `TenderCashInLieu` (if fractional units)	Available
Conversion (CONV)	TBD	TBD	TBD	TBD	Q4 2024
Dutch auction (DTCH)	TBD	TBD	TBD	TBD	Roadmap
Delisting (DLST)	TBD	TBD	TBD	TBD	Roadmap
Liquidation (LIQU)	TBD	TBD	TBD	TBD	Roadmap

* If you use the default transaction template for an event you must ensure the transaction type(s) exists in the default scope and source. You can nominate a different transaction type, perhaps in another scope and source, by creating your own custom transaction template.