Understanding dedicated corporate action events

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

Note: You must contact us to enable this feature in your environment. It is disabled by default to prevent corporate action events impacting existing portfolios in an uncontrolled manner.

For example, LUSID emits a cash dividend event on the ex-dividend date of a cash dividend corporate action manually loaded into a corporate action source. In addition, FINBOURNE provides:

• A default cash dividend transaction template that automatically generates an output 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 affected 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.

Recommended reading: Handling a cash dividend corporate action event.

The following dedicated events are available or planned. 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.