3/27/2019 Diary

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Diary

The DIARY applica on enables to record the details which relate to a par cular Event. For example, a Cash Dividend of EUR 2.75 per share is entered along with the
iden ty of the Security and the Dates rela ve to the par cular ac vity are recorded.

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DIARY transac on

The type of detail which T24 requires to sa sfactorily build the En tlements for any qualifying holdings in the Security are illustrated in the above screen shot. This
par cular Security offers holders a choice of either Cash or addi onal Securi es.

The qualifying holding for the En tlement is determined based on EX.DATE. In case of Events without the EX.DATE (for example, Tender offer), the system considers the
date a er the reply by date (REPLY.BY.DATE+1) as the EX.DATE and the REPLY.BY.DATE as the RECORD.DATE. If the REPLY.BY.DATE (cut-off date) is not present, it is based on
the last date of the period of ac on (PWAL – 69A – Sequence E).

It is possible to specify a Corporate Ac on that affects only specific Por olios. To do this, the user must input those specific Por olios in the mul -valued PORTFOLIO.NO
field in the DIARY record.

The BLOCK.POSITION field in DIARY.TYPE indicates whether the posi on is to be blocked by the Corporate Ac on or not. There are three possible op ons as explained
below:

Null - No block is required.

DIARY - The block is to be created when the DIARY is authorised and the unauthorised ENTITLEMENT records are created. The block is released when the
ENTITLEMENT is authorised.
ENTITLEMENT - The block is to be created only when the ENTITLEMENT is authorised.
OPTION – The block is created when the op on is elected (e.g. for tender, the block is created only if the client elects to take up the offer).

The system can block either the event security or the resultant security (the new stock received as en tlement). To block the new security the field BLOCK.NEW.SEC in
DIARY.TYPE should be set to YES. The block on new security will be effec ve ll the date when the new security is available for trading.

The default value for this field is held in the DIARY.TYPE record. If a block is required, then the QUALIFY.HOLDING is blocked by crea ng the SC.BLOCK.SEC.POS record.

SC.BLOCK.SEC.POS record

The LOCAL.TAX.CODE and SOURCE.TAX.CODE are automa cally defaulted from the COUPON.TAX.CODE record. The LOCAL.TAX.CODE field supports linked Tax func onality.
This means that, if the TAX record field LINK.TAX is populated then all the linked tax codes will be shown in this field. Addi onally, the LOCAL.TAX.PERC displays all Tax
percentage rates. This func onality is passed through to the ENTITLEMENT applica on.

Addi onally, by inpu ng 'YES' in the COUPON.TAX.CODE, separate Source and Local Tax entries can be generated for the Customer.

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COUPON.TAX.CODE Input

Diary of Events Input

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Depository Accoun ng Entries can also be split into Gross Amount and Gross Amount less Source Tax by inpu ng 'YES' in the SRC.TAX.DEDUCTED field in the DIARY
record.

A value dated ENTITLEMENT can also be generated by inpu ng 'VALUE' in the TRADE.OR.VALUE field in the DIARY generated. All Security movements that have a Value
Date before the EX.DATE in the DIARY are included. All posi ons where the EX.DATE is less than the Value Date are ignored. En tlements are generated only when the
EX.DATE is greater than the Value Date.

Op onal Events
DIARY with mul ple-op ons can be created. Where DIARY.TYPE record has field OPTIONS set YES, system will allow the user to mul -value the fields from OPTION.DESC to
create mul ple op ons.

There is no restric on on the number of Op ons that can be added to a DIARY.

SC.CA.OPTION.DESC
This table allows users to create different Op ons applicable for Corporate Ac ons. The op on descrip on will be mapped based on defini on in this table. The various
corporate ac on code indicators will be sent as part of Tag 22F in Sequence E (CA Op ons) of MT564. Some of these indicators are ABST (abstain), CONY (consent
granted), CONN (consent denied), etc. The OPTION DESC field will be updated based on descrip on provided here for the indicator

A DIARY record is created for Op onal events (for example, STOCK and CASH).

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DIARY

NOAC - In the case of voluntary events, NOAC (No Ac on) will be the default op on for investors not willing to par cipate in the event. There will be no impact on client
posi ons for client’s who do not par cipate (no reversal, rebook of posi ons).

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Genera ng En tlements
If the user authorises the completed DIARY record, then any resultant En tlements to be built on-line will be the subject of a TSA.SERVICE request. T24 uses the DIARY
details together with the various rules as specified in the DIARY.TYPE file to ascertain whether there are any qualifying holdings in the specified Security.

If there are En tlements to be processed, then the appropriate Corporate Ac on's TSA.SERVICE record must be set to run. This record is in the
XXX/SC.CORPORATE.ACTIONS format, where 'XXX' is the company mnemonic for the appropriate company. The En tlements are not created unless the TSM in
TSA.SERVICE is also set to run, this iden fies that Corporate Ac ons are to be processed.

If no process is to take place and there were en tlements expected, then re-check the DIARY date details and that those posi ons existed as of the Ex-date. If it is found
that there was an incorrect date, then change it on the DIARY and enter a 'Y' in the RERUN field. Upon authorisa on the system performs a further search for qualifying
the holdings.

A er crea ng the DIARY record the user runs the Corporate Ac on service, to generate the en tlement records. The generated En tlement records are in IHLD status, as
the Diary is created for op onal events.

The sample screen shots of the generated En tlement records.

En tlement Records

The En tlement records are then modified and moved to INAU status. The CUT.OFF.TIME field is based on the REPLY.BY.DATE and allows the user to modify the op ons
within the s pulated me.

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En tlement Record - with modified op ons

En tlement Record - without modified op ons

Re-running Corporate Ac on Service

A further feature available is that the DIARY can also be re-run a er any earlier runs, even though ENTITLEMENT records were generated in one or more of those runs.
This par cular func on is extremely helpful as a posi on might have been omi ed or was incorrect through late Trade entry.

Note: However, this facility is only available while all the ENTITLEMENT records remain unauthorised or held.

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The user re-runs the Corporate Ac on service to view the En tlement records. The previously elected or modified op ons are retained using the RETAIN.OPTION field.
When value of this field is set to 'YES', the En tlements in which the op ons are chosen is retained.

The op ons chosen are retained for the following cases:

If par al op on is elected and posi on is not changed on re-run.

If it is a full op on and nominal values are not retained (that is, RETAIN.NOMINAL is not specified in ENTITLEMENT)
If the QUALIFY.HOLDING field is amended in En tlement.

Overrides
Overrides are raised, if the user selects the op on a er the REPLY.BY.DATE and CUT.OFF.TIME

En tlement record with Overrides

Once ENTITLEMENT authorisa on has commenced and an error occurs, the only recourse is to reverse the DIARY. This ac on is necessary because once authorisa on has
commenced, the T24 on-line Accoun ng entries might have been built for all entries so far authorised. Once a DIARY is reversed, it follows as the Accoun ng entries is
also reversed. The the user can easily raise a corrected or second DIARY to start the process once again. However, individual ENTITLEMENT records can be reversed if
necessary.

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DIARY record

If the system successfully locates any qualifying holdings, then the authorised DIARY record contains the details of these. The authorised DIARY contains the benefits
a ributable to each op on, which in turn is broken down into Depository. To set which Depositories are eligible for Corporate Ac ons processing, the user must input 'Y or
N' as required in the CORPORATE.ACTIONS field in the CUSTOMER.SECURITY record (for each Depository)

The mul -value sets from the RP.ACCOUNT to RP.TOT.CASH.LCY fields allow to have the total cash amount of the Nostro in case of REPO posi ons. This is done if the
SPLIT.DEBIT.CPN field is set to 'YES' in the REPO.PARAMETER file. If there is a REPO account defined in the ACCOUNT field for the REPO applica on in the
NOSTRO.ACCOUNT file (refer the REPO topic for more details).

Events in Restricted Currencies

For Events involving Securi es traded in Restricted currencies, it is possible to specify the Se lement Currency and the FX Rate (between Restricted and Se lement
Currency) at DIARY level. The list of Restricted currencies are maintained in the SC.RESTRICTED.CURRENCY table. For all Events involving Restricted currencies defined
here, the Se lement Currency along with the FX Rate; becomes mandatory at DIARY level.

The Se lement Currency and FX Rate can be manually input in DIARY, or it is defaulted from SC.RESTRICTED.CURRENCY (and from CURRENCY for the FX Rate) or can be
mapped from SC.PRE.DIARY. This is applicable for all Events (cash receipt or payment) involving Restricted currencies. The Event (DIARY) is authorised and En tlements
are created only a er the Se lement currency and the FX Rate is input.

In the ENTITLEMENT applica on, the 'En tlement Amount' field holds the Se lement Currency equivalent. Source/local taxes and other charges are also calculated in the
Se lement Currency. Also, the En tlement record holds the Event Currency equivalent amount for informa on purposes.

Published on: 11/02/2019

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