Understanding dedicated corporate action events

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

Important: To enable instrument events, register a recipe with every portfolio you wish events to impact. More information.

For example, LUSID emits a CashDividendEvent on the ex-date of a cash dividend corporate action providing you manually load it in time into a corporate action source registered with the portfolio. In addition:

LUSID provides a CashDividendEvent default transaction template that automatically generates a transaction representing the cash dividend amount. You can override this default template if you wish, but it is not necessary.
You must implement a DividendIncome transaction type to confer a suitable economic impact on this automatically-generated transaction. We provide a recommendation, which you can either implement as-is or change if desired.

Note: Term instruments such as bonds, swaps, options and futures that mature and therefore have an intrinsic lifecycle automatically trigger LUSID to emit events. More information.

With this transaction type in place, and for each portfolio subscribed to the corporate action source and with a holding on the ex-date, LUSID automatically:

Generates an output transaction scaled to your holding in that portfolio, 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 or configure a specific 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.

Corporate action	Dedicated LUSID event	Participation	Elections	Transaction type recommendation(s) requiring implementation	Notes (see also Troubleshooting)
Accumulation (ACCU)	`AccumulationEvent`	Mandatory	Cash	FundAccumulationIncome
Bonus issue (BONU)	`BonusIssueEvent`	Mandatory	Security	BonusIssueAdditionalUnits (if cash or security) BonusIssueCashInLieu (if security and fractional units) BonusIssueCashOffer (if cash)
Bonus issue (BONU)	`BonusIssueEvent`	Mandatory with choices	Cash, Security, Lapse
Call on intermediate securities (EXRI)	`CallOnIntermediateSecuritiesEvent`	Mandatory with choices	Option exercise, Lapse	ExerciseIntermediateSecurities (if option exercise) ExpireIntermediateSecurities
Capital distribution (CAPD)	`CapitalDistributionEvent`	Mandatory	Cash	DistributionIncome
Capital distribution (CAPD)	`CapitalDistributionEvent`	Mandatory with choices	Cash (choice of currencies)	DistributionIncome
Capital gain distribution (CAPG)	`CapitalGainsDistributionEvent`	Mandatory	Cash	`CashReceipt`
Capital gain distribution (CAPG)	`CapitalGainsDistributionEvent`	Mandatory with choices	Cash (choice of currencies)	`CashReceipt`
Cash dividend (DVCA)	`CashDividendEvent`	Mandatory	Cash	DividendIncome	See this tutorial
Cash dividend (DVCA)	`CashDividendEvent`	Mandatory with choices	Cash (choice of currencies)	DividendIncome	See this tutorial
Consent (CONS)	`ConsentEvent`	Voluntary	Cash or lapse	`ConsentAccept`
Conversion (CONV)	`ConversionEvent`	Mandatory, Voluntary	Security, Cash & security, Cash	ConvRemoveExisting (if security) ConvAdjustCost (if cash & security) ConvReceiveCash (if cash or cash & security) ConvReceiveUnits (if security or cash & security) ConvCashInLieu (if fractional units)
Dividend option (DVOP)	`DividendOptionEvent`	Mandatory with choices	Security or cash	DvopCashIncome DvopSecurityOption (if security)
Dividend reinvestment (DRIP)	`DividendReinvestmentEvent`	Mandatory with choices	Security or cash	DripCashIncome DripSecurityReinvestment (if security)
Exchange offer (EXOF)	`ExchangeOfferEvent`	Mandatory, Mandatory with choices, Voluntary	Security, cash or mixed lot constituents	`ExchangeRemoveExisting` `ExchangeReceiveUnits` `ExchangeCashInLieu` `ExchangeReceiveCash`
Intermediate securities distribution event (RHDI)	`IntermediateSecuritiesDistributionEvent`	Mandatory	Security	IntermediateSecurityUnits IntermediateSecurityCashInLieu (if fractional units)
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)
Merger (MRGR)	`MergerEvent`	Mandatory with choices	Security, cash & security, cash
Repurchase Offer/Issuer Bid/Reverse Rights (BIDS)	`RepurchaseOfferEvent`	Voluntary	Cash or tender	`RepurchaseOfferEventChooseCash` `RepurchaseOfferEventChooseTender`
Reverse stock split (SPLR)	`ReverseStockSplitEvent`	Mandatory	Security	ReverseStockSplitUnitReduction ReverseStockSplitCashInLieu (if fractional units)
Scrip dividend (DVSC)	`ScripDividendEvent`	Mandatory	Security	ScripDividendAdditionalUnits ScripDividendCashInLieu (if fractional units)
Spin-off (SOFF)	`SpinOffEvent`	Mandatory	Security	SpinOffAdjustCost SpinOffNewUnits SpinOffCashInLieu (if fractional units)
Stock dividend (DVSE)	`StockDividendEvent`	Mandatory	Security	StockDividendAdditionalUnits StockDividendCashInLieu (if fractional units)
Stock split (SPLF)	`StockSplitEvent`	Mandatory	Security	StockSplitAdditionalUnits StockSplitCashInLieu (if fractional units)
Payment in kind (PINK)	TBD	Mandatory	Security	TBD
Payment in kind (PINK)	TBD	Mandatory	Other	TBD
Financial default (DFLT)	TBD	TBD	TBD	TBD
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)
Worthless (WRTH)	`WorthlessEvent`	Mandatory	N/A	`Worthless`
Dutch auction (DTCH)	TBD	TBD	TBD	TBD
Delisting (DLST)	TBD	TBD	TBD	TBD
Liquidation (LIQU)	TBD	TBD	TBD	TBD

Documentation Index

Understanding dedicated corporate action events