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, 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

Mandatory with choices

Cash, Security, Lapse

Capital distribution (CAPD)

CapitalDistributionEvent

Mandatory

Cash

DividendIncome

Available

Mandatory with choices

Cash (choice of currencies)

Cash dividend (DVCA)

CashDividendEvent

Mandatory

Cash

DividendIncome. See an example.

Available

Mandatory with choices

Cash (choice of currencies)

Dividend option (DVOP)

DividendOptionEvent

Mandatory with choices

Security or cash

DvopCashIncome

Available

Dividend reinvestment (DRIP)

DividendReinvestmentEvent

Mandatory with choices

Security or cash

DripCashIncome

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

Mandatory with choices

Security, cash & security, cash

Reverse stock split (SPLR)

ReverseStockSplitEvent

Mandatory

Security

ReverseStockSplit

Available

Scrip dividend (DVSC)

ScripDividendEvent

Mandatory

Security

StockDividend

Available

Spin-off (SOFF)

SpinOffEvent

Mandatory

Security

  • SpinOffAdjustCost

  • SpinOffNewUnits

  • SpinOffCashInLieu (if fractional units)

Available

Stock dividend (DVSE)

StockDividendEvent

Mandatory

Security

StockDividend

Available

Stock split (SPLF)

StockSplitEvent

Mandatory

Security

StockSplit

Available

Payment in kind (PINK)

TBD

Mandatory

Security

TBD

Roadmap

Mandatory

Other

Financial default (DFLT)

TBD

TBD

TBD

TBD

Q3 2024

Tender/Takeover (TEND)

TBD

TBD

TBD

TBD

Q4 2024

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.