IBERCLEAR manages corporate actions carried out regarding securities included in the ARCO system in accordance with the international standards defined by the Corporate Actions Joint Working Group (CAJWG) and the Joint Working Group on General Meetings (JWGGM) with the purpose of harmonising all corporate actions relating to communication flows, minimum disclosure requirements, significant dates and procedures at a European level.
Pursuant to international standards, there are two types of corporate actions:
This classification applies to both voluntary and mandatory corporate actions.
Iberclear manages mandatory corporate actions based on the position held at a given moment by each Participant in a given security code at the close of the record date processes.
According to these dates, positions obtained as the result of a trade made during or after Ex Date are not included, as trades made after that date cannot be included in the corporate action.
Iberclear manages voluntary corporate actions and mandatory ones with options when it is optional for holders to participate. Participants will have to transfer the securities that their clients will use in the financial transaction to the sub-balance indicated in the notification of the corporate action (ECO1/ECO2 sub-balances).
As a result of a corporate action involving a mandatory cash pay-out or distribution of a number of securities, it may be necessary to generate an adjustment to credit the participant that is actually entitled to this right pursuant to the dates established for this purpose by the issuer. These adjustments will be created in accordance with the market claims standards of the T2S Corporate Action Sub-Group.
IBERCLEAR generates market claims at the end of the record date and, if necessary, during the market claim detection period which covers the 20 business days following the record date.
There are two types of claim:
a) Market Claims, in favour of the buyer: adjustments will be posted for each matched instruction pending settlement with a trade date that is prior to the ex-date.
B) Reverse Claims, in favour of the seller: adjustments will be posted for positions that are not eligible to participate in the corporate action despite being settled on the record date.
Whenever the corporate action involves a mandatory reorganisation such as an exchange, conversion or final redemption of securities, Iberclear will carry out the transformation of matched transactions which are pending settlement at the end of Record Date/Market Deadline. Likewise, at the end of each day for the 20 business days following the record date, Iberclear will transform the trades matched during the transformation detection period in accordance with the default option announced by the agent in the details of the corporate action.
This is the process that enables a buyer which did not receive the securities on time, to instruct the seller with the option they would have selected had they received the securities on time.
Once the buyer's instruction is sent to the seller before the buyer protection deadline, if the failed instruction is not settled at the close of that day, both must cancel the instruction pending settlement and issue a new instruction to replace it.
If it is necessary to perform a reversal due to an incorrect settlement of a given corporate action consisting of a cash distribution, IBERCLEAR will accordingly inform the parties involved and, if necessary, will provide details of the new executed event to correct the cash movements.
The issuer will notify IBERCLEAR of its forthcoming General Meeting/Assembly as soon as possible and at least three days before Record Date. The notification may be sent via BME-PC or through MT564 messages.
The issuer must include information relating to the date and place of the meeting, its Record Date and the agenda in Spanish and translated into English.