Market standards for Processing

Mandatory stock distributions

Corporate action types: bonus issue, free allocation, stock dividend, etc.

The order of dates for mandatory stock distributions are aligned with the regular T+2 settlement lifecycle. The position of the ex-date for stock distributions (e.g., Bonus Issue, Stock dividend, etc.) is 1 business day before the record date as follows:

Harmonized order of dates

Mandatory reorganisations

corporate action types: assimilation, mandatory conversion, stock split, reverse split, merger, liquidation, mandatory exchange, final redemption, partial redemption, squeeze out, spin off, etc.

All Corporate Actions require a change to the ISIN code.

The concept of ‘Last Trading Date’ on the underlying instrument (‘old’ ISIN code) is applying to all Mandatory Reorganisations against cash or securities (redemptions, stock splits, reverse stock splits, etc). The Last Trading Date is preceding the record date by 2 business days as follows:

Mandatory reorganizations

Cash distributions

The position of the ex-date for cash distributions (e.g Dividends, Interest payments etc.) is 1 business day before the record date and is aligned with the regular T+2 settlement lifecycle, as follows:

Harmonized order of dates

Further information

The key documents of the European Corporate Actions Industry market standards, which have been drafted and agreed to by all markets and their related participants, associations, infrastructures and Central Banks, can be found at www.ebf-fbe.eu under the section  "Key Documents" Guiding principles and Market Standards for Corporate Actions Processing (revised version 2012).

For further information related to the consequences of a Corporate Action on the Central Order book of Euronext, please refer to the Trading Manual for the Universal Trading Platform available on the Euronext website at Organization of trading.