Contents
Contents
Contents............................................................................................................................................2
Disclaimer..........................................................................................................................................5
Document History ..............................................................................................................................6
Introduction.......................................................................................................................................7
Background ....................................................................................................................................7
Corporate Actions Transformation and ISO 20022 Messaging ........................................................7
Phased Approach ........................................................................................................................7
Purpose of This Guide ..................................................................................................................8
Client Resources and Documentation...............................................................................................8
DTCC Website .............................................................................................................................8
DTCC Asset Services Learning Center ............................................................................................8
Documentation ...........................................................................................................................9
Market Consultation and Feedback for ISO 20022 Messaging ...................................................... 10
ISO 20022 Benefits........................................................................................................................ 10
Key Concepts ...................................................................................................................................12
ISO 20022..................................................................................................................................... 12
Corporate Actions Data Model....................................................................................................... 13
Multiple Events ......................................................................................................................... 13
Identification ............................................................................................................................ 14
Event Types .............................................................................................................................. 15
Sub Event Types ........................................................................................................................ 15
Mandatory/Voluntary Indicator.................................................................................................. 16
Narratives................................................................................................................................. 16
DTCC Workflow Status............................................................................................................... 16
ISO 20022 Message Data............................................................................................................... 20
Message Structure ........................................................................................................................ 23
ISO 20022 Message Delivery and Network Protocols....................................................................... 31
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
2
Contents
Subscription Options ................................................................................................................. 32
CCF Legacy File Interface and Scheduling .................................................................................... 36
Data Files and Messaging Co-Existence ....................................................................................... 36
Technical Transition Considerations ........................................................................................... 36
Customer Testing ...................................................................................................................... 36
DTC Services ....................................................................................................................................37
DTC - Canadian Dollar Settlement .................................................................................................. 37
Foreign Tax Services...................................................................................................................... 38
Foreign Currency Payments (FCP) .................................................................................................. 39
DRIP Program ............................................................................................................................... 41
Documentation Guide ......................................................................................................................44
Supporting Documentation ........................................................................................................... 44
Corporate Action Data Dictionaries................................................................................................ 45
Corporate Action Event Scenarios.................................................................................................. 47
Event Type ................................................................................................................................ 47
Nature of the Event and Option Type ......................................................................................... 48
Default Option.............................................................................................................................. 49
Payout Details & DTC Legacy values............................................................................................ 49
Use of data provided ................................................................................................................. 50
Legacy Mapping Spreadsheet ........................................................................................................ 50
Message Usage Guideline (MUG) ................................................................................................... 53
How to Use Supporting Documentation to Map from CCF to ISO 20022 ........................................... 59
Onboarding: How to get started ....................................................................................................... 62
Contact Information...................................................................................................................... 62
Network Considerations................................................................................................................ 62
ISO 20022 Mapping....................................................................................................................... 63
Client Support............................................................................................................................... 63
Appendix A: DTCC Implementation of ISO 20022............................................................................... 64
DTCC Naming Conventions ............................................................................................................ 64
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
3
Contents
Supplementary Data (Extensions) .................................................................................................. 64
Notation....................................................................................................................................... 66
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
4
Disclaimer
Disclaimer
This document is being made available by DTCC for information purposes only. Please refer to the
Corporate Actions Transformation technical documentation section of
www.dtcc.com/catransformation for further information.
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
5
Document History
Document History
July 2015
Note: This document was previously titled “DTCC Corporate Actions Product
Migration Guide for Adoption of ISO 20022 Messaging.”
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
6
Introduction
Introduction
Background
Corporate Actions Transformation and ISO 20022 Messaging
DTCC’s Corporate Actions Transformation initiative is transforming how DTCC processes and
communicates with its participants and clients, across the whole corporate actions lifecycle from
announcement through to payment.
The goal of the multi-year transformation initiative is to reduce cost and risk to the industry by
creating a new data model, adopting ISO 20022 messaging and introducing a new user interface.
The initiative is being implemented in phases over the course of the next several years, with the
eventual retirement of proprietary CCF file formats and PTS/PBS functions supporting Distributions,
Redemptions and Reorganizations.
The initiative introduces three major changes to the way DTCC processes and communicates
corporate action activity:
•
•
•
A new data model based on event data and business process replaces existing function and
activity codes
ISO 20022 messaging is used for automated electronic communication between DTCC and
its clients. DTCC utilizes ‘supplementary data’ structures (also known as ‘extensions’) to
communicate critical data that is not available as part of the core standard
A new browser based user Interface called Corporate Actions Web (CA Web) replaces
corresponding PTS/PBS functions for corporate actions announcements, entitlements,
allocations and adjustments, as well as provides the facility to input instructions
In addition to the work completed on its data model and message structures, DTCC continues to
work with other organizations to promote the use of ISO standards. These include SWIFT (Society for
Worldwide Interbank Financial Telecommunication), as well as industry groups including SIFMA
(Securities Industry and Financial Markets Association) and ISITC (Industry Standardization for
Institutional Trade Communication).
Phased Approach
Since the project’s initiation, DTCC has taken a phased approach to the transformation initiative by
building a corporate actions data model, mapping existing messages and data elements onto
equivalent ISO 20022 messages and message components, holding a pilot testing exercise with
selected market participants focusing on the announcement phase, and holding a parallel testing
period for distribution and redemption event lifecycle functionality, including elective dividend (EDS)
instructions.
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
7
Introduction
Over the past several years, DTCC has also worked with members of the U.S. and global market to
introduce a number of changes to ISO 20022 to accommodate some of the industry’s most
significant requirements. The close collaboration with clients and the aforementioned groups has
resulted in the delivery of cost savings and risk reduction in the form of ISO 20022 messaging and CA
Web.
ISO 20022 messages for the announcement of corporate actions have been in production across the
SWIFT and DTCC SMART MQ networks since November 21, 2011. These announcements cover the
full range of corporate actions (distributions, redemptions and reorganizations).
DTCC has been progressively introducing additional messages. The full lifecycle of messages for
distributions, redemptions and reorganizations became available in production for testing in
February 2013, followed by distributions instructions messaging in April 2015. Lifecycle messages for
redemptions are available for parallel production testing beginning in Q3 2015. Reorganizations
lifecycle and instructions for reorganizations will be added as the project progresses. Click here for a
project timeline.
CA Web was introduced on June 23, 2014 for parallel production testing and was deployed to
production for Distributions lifecycle processing on March 30, 2015.
Purpose of This Guide
The purpose of this document is to introduce some of the major changes associated with the
initiative, and provide a guide to the documentation available to help DTCC clients migrate to the
new ISO 20022 messages and data model.
Client Resources and Documentation
DTCC Website
The DTCC website (www.dtcc.com) is the primary repository for general information and
documentation concerning the transformation initiative. Clients can review the published
documentation and use the website to stay up to date on new developments.
See: http://dtcc.com/news/2013/september/12/corporate-actions-transformation.aspx
DTCC Asset Services Learning Center
The DTCC Asset Services Learning Center hosts a variety of training materials including webcasts,
user guides, videos, recordings of live demonstrations, job aids such as quick tips and FAQs.
The Learning Center can be accessed at:
https://dtcclearning.com/learning/assetservices/
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
8
Introduction
Documentation
To support system development needs for DTCC clients, the following ‘Technical Documents and
Specifications’ can be found at:
http://dtcc.com/news/2013/january/01/iso-20022-messaging-specifications.aspx
•
•
•
•
•
•
Getting Started With Corporate Actions ISO 20022 Messaging (pdf): This document.
ISO 20022 Message Specifications for Announcements (zip): Provides guidance to the
message schemas: data element definitions, formats, DTCC synonyms, and ‘extended’
elements for announcement and cancellation messages.
ISO 20022 Message Specifications for Corporate Actions Distributions Entitlements and
Allocations, Instructions and Proxy Meetings (four separate zip files): Provide guidance to
the message schemas: data element definitions, formats, DTCC synonyms, and ‘extended’
elements for the remainder of the lifecycle covering elections, entitlements and proxy
meetings.
User Guide: ISO 20022 Messaging for Distributions Entitlements and Allocations (pdf):
Provides an overview and detailed explanation of the ISO 20022 message flows used in the
distributions lifecycle with a focus on entitlements and allocations.
User Guide: ISO 20022 Messaging for Distributions Instructions (pdf): Provides an overview
and detailed explanation of the ISO 20022 message flows used in the distributions lifecycle
with a focus on accepting instructions from clients.
User Guide: ISO 20022 Messaging for Redemptions (pdf): Provides an overview and
detailed explanation of the ISO 20022 message flows used in the redemptions lifecycle.
Documentation regarding Legacy Mappings can be found at:
http://dtcc.com/news/2013/january/01/legacy-mapping.aspx
•
•
•
Legacy Data Files: Provides a list of existing DTCC data files that will be replaced by ISO
20022 messages under this initiative.
Mapping Legacy to DTCC New Model (xls): Identifies relationships from the legacy CCF
fields, by file, to the new data model data element name.
ISO 20022 Entitlement, Payments and Allocations Mapping (xls): Enables users to map
from legacy CCF files to ISO 20022 publication files for record date position capture,
projected payments and payments.
Documents providing detailed mappings of event types to function/activity codes can be found at:
http://dtcc.com/news/2013/january/01/scenarios.aspx
•
Corporate Actions Scenario Documents (zip): Identifies event scenarios with specific one to
one mapping relationships between DTCC’s new data model and its legacy systems.
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
9
Introduction
•
DTCC Corporate Action Data Dictionaries (xlsx): ISO 20022 event types and data elements
with mapping from DTC’s legacy function code based data model.
The documentation will be revised as needed to reflect appropriate changes identified from the
review processes.
Market Consultation and Feedback for ISO 20022 Messaging
DTCC has held, and will continue to hold working group sessions and industry consultation sessions
with key market participants and clients, and will continue to consult with industry bodies
throughout the process. DTCC also ran a pilot program before the launch of the new announcement
process and continues to work closely with the industry as important deadlines approach.
While testing, clients may submit inquiries and/or comments to the CA Transformation mailbox
([email protected]). All production inquiries should be directed to the customer help
center at 888 382 2721.
ISO 20022 Benefits
Since the creation of DTCC's depository in 1973, it has utilized its own proprietary formats for
corporate actions processing. So why switch to an international standard, and why ISO 20022? DTCC
recognized that it needed to respond to an ever-changing environment and be able to
accommodate what was becoming a global investment business. DTCC's clients had expanded their
businesses throughout the world and wanted to streamline, as much as possible, the standards and
formats used to communicate. ISO 20022 meets those needs and offers a host of benefits, including:
•
•
•
•
•
•
•
Flexibility – both in terms of its content and tailoring of output. As new corporate actions
are developed, the messaging standard can change to meet the demands of the business,
not the other way around.
XML Syntax – due to its widespread support, XML allows for easier processing and more
efficient yearly maintenance.
Schema Validation – used to confirm that each data element is populated with a valid value.
Greater Straight-Through Processing (STP) – corporate action events will be announced
using a data model that conforms to market practice, which also contains less narrative or
“free text” and more fielded and tagged data.
Unique Corporate Action ID for Each Event – can be tracked through the life cycle of the
event – from announcement, to election, entitlement, and payment.
Enhanced Data Elements – a more comprehensive and granular number of data elements,
which allows for greater accuracy and, ultimately, less processing risk on the part of the
customers.
Maintenance – the yearly standards process requires DTCC to constantly review, scrutinize
and maintain its standard to ensure compliance with market practice. This in turn will lead
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
10
Introduction
•
to less ad hoc maintenance and instead institute a systematic approach to the business rules
driving the file formats, not the other way around.
A Global Standard – In defining a new model for U.S. and global corporate actions, DTCC
worked closely with SWIFT, ISO 20022's registration authority. DTCC then worked with the
Securities Markets Processing Group (SMPG) and the International Securities Association for
Institutional Trade Communication (ISITC) to develop proposals for changes to the ISO
20022 standard as it related to corporate actions, which were reviewed and approved by
the Securities Standards Evaluation Group (CA SEG), a group of international industry
experts who accept or reject changes to the ISO 20022 standard’s repository. DTCC then
presented the proposals to the Corporate Actions Maintenance Working Group, a group
that is responsible for all annual ISO standard release changes for evaluation and admission
for the final country vote.
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
11
Key Concepts
Key Concepts
This section outlines some of the key concepts in the DTCC corporate actions transformation.
These are:
•
•
•
•
The use of ISO 20022 messages and data model;
The changes resulting from the new data model;
The resulting message structure (taking a corporate action announcement as an example);
The methods of communication with the new DTCC systems.
ISO 20022
DTCC is committed to migrating from existing proprietary corporate action data files to the global
ISO 20022 financial messaging standard. ISO 20022 is founded on modern data modeling techniques
and business process analysis. Central to the standard is a global, cross-functional data dictionary
and business process model. By aligning with these components, DTCC will provide clients with
increased operability within their own systems and with other external processes.
While moving towards the ISO 20022 standard adheres to the general movement away from
proprietary formatted files, there are data elements and codes within the DTCC data model that do
not exist within the ISO 20022 corporate action announcement messages. To accommodate these
additional data elements with the ISO 20022 messages, DTCC will make use of the facility within
such messages to include ‘supplementary data’ specific to a market or community.
The ‘supplementary data’ structures (also referred to as ‘extensions’) allow DTCC to provide an
agreed-upon and machine-readable structure within the messages for those data elements that
have not been globally agreed to form part of the main message. Note that the structure of the
extension must be validated by the ISO community and registered within ISO 20022, and this
process includes the addition of the elements to the ISO 20022 data dictionary. This allows for
improved interoperability while avoiding an impact on the messages themselves which may have
been implemented in other communities.
In time, it is hoped that many of the elements initially placed in the extension structures will be
accepted into the standard message globally. To that end, DTCC is working with the National 1 and
Global 2 Market Practice Groups to enhance the ISO 20022 standard. Other elements may be
required only for coexistence with the existing DTCC systems, or may not be accepted globally, and
will thus remain in the extension structure for the foreseeable future.
1
2
The U.S. Securities National Market Practice Group is ISITC. See www.isitc.org
The Securities Market Practice Group, SMPG. See www.smpg.info
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
12
Key Concepts
Changes to the ISO 20022 standard occur annually, in November, and require DTCC and its clients to
accommodate specific changes which will require revisions to the technical documents provided by
DTCC and clients’ systems.
More information on the ISO 20022 standard can be found at www.iso20022.org.
Corporate Actions Data Model
The ISO 20022 data model for corporate actions differs in several key respects from DTC legacy
systems. The customer browser interface known as Corporate Actions Web (CA Web), is aligned
with the ISO standard and matches the ISO 20022 model closely, but there are still differences,
noted below.
The main differences between the legacy DTCC data model and that adopted for the corporate
actions transformation initiative are identified in the following list, and subsequently explored more
thoroughly in the sections that follow:
•
•
•
•
•
In the legacy data model, a complex event is sometimes split into multiple events with
multiple function codes for processing purposes. An example of this is the delivery of rights
in a distribution event, followed by an elective event to exercise those rights.
The identification of the event is a key component in the ISO model. A corporate action
identification number (CA ID or COAF as it is known in ISO 20022) is issued by DTCC for each
DTC-eligible event and will remain consistent throughout the life of the event. DTCC will
provide this official reference number ONLY through an ISO 20022 message for DTC-eligible
securities.
ISO 20022 uses its own set of event type codes to define the event and how it must be
processed; in some cases the level of granularity is different from DTC function codes.
A critical data item for each event is the mandatory/voluntary indicator, which shows
whether an event is mandatory without options, mandatory with options or voluntary.
ISO 20022 seeks, wherever possible, to avoid the use of narratives and free text; there will,
however, still be occasions where data must be supplied in text form.
Multiple Events
In the existing DTC model, some complex events are defined using multiple envelopes and function
codes. The new model is able to define a single event with multiple options and payouts to account
for the complexity of the event. Where the event complexity is such that processing is facilitated by
multiple events, the events will be linked by reference.
Where the market itself defines multiple events, they are linked by reference in the new model (see
identification, below). DTCC also provides the possibility, through the browser, to view related
events for the same CUSIP or CUSIP family.
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
13
Key Concepts
A comparison of the approach to multiple events is summarized below:
Feature
Old DTC Function Code Model
The New ISO 20022 Model
Single event as defined by the
market
Multiple envelopes and
function codes represent a
single event where complexity
exists.
Single event provides all details
using multiple options and
payouts to account for event
complexity.
Multiple events as defined by
the market
Linked through the use of text.
Event linking provided
dynamically via reference to
the event identifier (Related
Event ID) and link type
describing
association/relationship.
Related events (same CUSIP or
CUSIP family) are displayed in
the browser (not included in
messages).
Multiple events as defined by
DTC
Multiple events are processed
through function and activity
codes with linking verbiage in
the comment text.
To facilitate processes at DTC
some events may be
announced as multiple events.
Those events will be linked via
reference to the event
identifier (Related Event ID)
and link type describing
association/relationship.
Identification
The ISO 20022 data model includes a number of identifiers for an event. The Corporate Action Event
Identification must be populated by any institution (data providers or account servicers) that sends
event announcements. This identifier is then referenced in any further communication (replacement
announcements, or subsequent processing) for that event by that institution.
In addition, the Official Corporate Action Event Identification (CA ID or COAF as it is known in ISO
20022) is a unique event reference for the event, and is assigned by a designated body within each
market. DTCC will publish the Official Corporate Action Event Identification on DTC eligible securities
on its ISO 20022 messages. This new identifier will not be incorporated into legacy files.
Where applicable, ‘related’ events will be linked using the Corporate Action Event Identification. For
example, the relevant Event Identifications will be listed on each event where two or more events
should be taken together to understand a complete event, or where the events have a material
impact on each other.
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
14
Key Concepts
Event Types
DTC’s legacy system generated announcements using Function and Activity Codes that related to
event types. The event lifecycle was processed using these codes.
DTC also had specific function codes for issue types. For example, Partial Call was announced under
FC 74 for a Corporate Bond and FC 76 for a Municipal Bond.
The transformation initiative introduces the ISO aligned corporate action event types. All existing
DTC ‘Function Codes’ and ‘Activity Codes’ have been replaced with these new event types.
In general, the new event type defines the event without reference to the security type, processing
flags or the mandatory/voluntary indicator, although some exceptions apply. DTC defined event
types in some cases are more granular than ISO e.g., Maturity, Warrants Redemption, Termination
are all represented as Final Maturity (REDM) in ISO Event Type value. These more granular DTC
event types will be identifiable by either using additional elements in the message, like:
EventProcessingType or use of extensions like ExtendedEventGroup.
Sub Event Types
Most of the DTCC defined event types in combination with sub event types have one corresponding
ISO event type. However, there are instances where more than one DTCC defined event type (+ sub
event type) will be represented by one ISO event type, and also where some DTCC defined event
types do not have a corresponding ISO event type. A complete list of DTCC defined event types and
sub event types and their corresponding ISO codes are available in the DTCC Corporate Actions
Events Dictionary.
Finally, a few of the DTCC new events have been mapped onto the generic ‘other’ ISO event type
code. These events can be distinguished using existing message elements whenever it is possible or
by using extensions. The following table lists the event types mapped to ‘other’ (OTHR).
Event Name
Usage
ISO Event Type
Code Mapping
Additional Qualifier
(Message Element)
Distribution
A distribution by the issuer that is
not classified as another specific
event.
OTHR (Other)
(ISO)
EventProcessingType:
DISN
General
Information
General information provided by
the issuer that should not result in
material changes to the security.
OTHR (Other)
(ISO)
EventProcessingType:
GENL
Reorganization
A reorganization event announced
by the issuer that cannot be
classified as another event.
OTHR (Other)
(ISO)
EventProcessingType:
REOR
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
15
Key Concepts
Mandatory/Voluntary Indicator
The new corporate action event types will also include a notation as to the ‘nature’ of the event,
which will be one of the following:
•
•
•
Mandatory (MAND): Events that occur without representation from the holder. These can
be driven unilaterally by the issuer or as an attribute of the security. Examples are: Cash
Dividend and Maturity.
Voluntary (VOLU): Events that require an election, or not, from the holder. For example,
Tender Offer and Rights Subscription.
Mandatory with Options (CHOS): Events that are mandated by the issuer/offeror but where
a choice of entitlement is offered. The holder can make an election or not respond and
receive the default option. For example: Dividend with Options and Merger with Elections.
Narratives
A key goal of the ISO 20022 standard is to reduce the amount of data sent as free text, thus
increasing straight-through processing (STP).
In the DTCC implementation of ISO 20022, a number of different narrative fields will be used to
further clarify details of the event:
•
•
•
•
•
Terms (mapped to ISO InformationConditions): Provides a summary of the event in a
manner that will enable message recipients to send the information directly to their clients.
Restrictions: Event restrictions are key details that need to be easily identified and
understood by all parties. ‘Restrictions Text’ occurs at two levels:
o Restrictions (mapped to ISO InformationToComplyWith): Details restrictions that apply
to the event.
o Restrictions on Disbursed Security (Payout Level, mapped to SecurityRestriction):
Details restrictions that may be applied to the new security, including where the new
security is not DTC eligible and needs to be ‘exited’.
Comments (mapped to AdditionalText): Critical information regarding specific processing
about the event.
Vendor (mapped to NarrativeVersion): Information supplied by the data vendor.
Option (mapped to OptionsDetails/ NarrativeVersion): Provides a summary of the option
provided in a manner that will enable message recipients to send the information directly to
their clients.
DTCC Workflow Status
DTCC’s new data model contains different internal workflow statuses that ultimately map to the ISO
20022 standard workflow statuses. The chart below will help you to understand those statuses and
how they ultimately relate to what you will receive via the ISO 20022 message.
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
16
Key Concepts
ISO
ISO
EventCompleteness EventConfirmation
Status
Status
Workflow
Status
Workflow
Status
Description
Description
Indicates whether
the details
provided about an
event are complete
or incomplete.
Indicates the
status of the
occurrence of an
event.
Message
Type
ONLY for
Cancellation
advice message.
AP
Approved
All of the required data
has been populated. Any
conflicting data has been
resolved. Either all
information was in
agreement (STP) or if
manual validation was
necessary, authorized
review and
changes/updates were
performed.
COMP
CONF
CANO
CA
Conditionally
Approved
Announcement has been
confirmed but not all of
the required data is
available. Event was
validated or a specific STP
criteria was met, however,
data is still pending
confirmation of the event.
INCO
CONF
CANO
CN
Cancelled
Event has been cancelled
by the Issuer/Offeror.
COMP
CONF
CACN
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
Cancellation
Reason Code
WITH
17
Key Concepts
ISO
ISO
EventCompleteness EventConfirmation
Status
Status
Workflow
Status
Workflow
Status
Description
Description
Indicates whether
the details
provided about an
event are complete
or incomplete.
Indicates the
status of the
occurrence of an
event.
Message
Type
ONLY for
Cancellation
advice message.
CT
In conflict
Two or more sources
disagree on significant
number of data elements.
INCO
UCON
CANO
DE
Deleted
Announcement record has
been deleted/removed as
an invalid record.
COMP
UCON
CACN
IN
Incomplete
Required data is not
available. Announcement
record cannot be verified.
INCO
UCON
CANO
PA
Pending
Approval
Validation review was
performed and event has
been modified. Event
record is pending
authorized approval.
INCO
UCON
CANO
PC
Pending
Cancelled
Validation has determined
event is being cancelled by
the issuer/offeror. Pending
authorization.
INCO
UCON
CANO
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
Cancellation
Reason Code
PROC
18
Key Concepts
ISO
ISO
EventCompleteness EventConfirmation
Status
Status
Workflow
Status
Workflow
Status
Description
Description
Indicates whether
the details
provided about an
event are complete
or incomplete.
Indicates the
status of the
occurrence of an
event.
Message
Type
ONLY for
Cancellation
advice message.
PN
Pending
Conditionally
Approved
Announcement has been
confirmed but not all of
the required data is
available. Event record
pending authorization.
INCO
UCON
CANO
PD
Pending
Deleted
Validation has determined
the announcement record
to be invalid. Event record
pending authorization.
INCO
UCON
CANO
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
Cancellation
Reason Code
19
Key Concepts
ISO 20022 Message Data
ISO market practice views information based on the sender of the message (usually an Asset
Servicer). DTCC issues data in its role as a Central Securities Depository (CSD) and generally, reflects
the key data provided by DTC in the core message. Data provided by the issuer is included in the
message extension as supplementary data. As a rule, data fields with names beginning with the
word “Declared” indicate that they were provided by the issuer. Likewise, data field names
beginning with “DTC” indicate the data was provided by DTC.
Messages will be constructed with a ‘core’ standard message mapping required (for processing), and
a supplementary extension.
The following examples illustrate the data mapping methodology:
For a Cash Dividend event, its payout data fields will contain DTC Cash Rate and Declared (issuer)
Gross Rate. DTC Cash Rate will be mapped to the ‘core’ standard part of the message and Declared
Gross Rate will be extended as supplementary data.
DTCC
CANO: DTC Data is
primarily in ‘core’ message
Extension: Issuer Data is
supplemental
In most cases, the same options will be offered (announced and processed) by both the
Issuer/Offeror and by DTC. However, on occasion, there will be options offered by the issuer that
are not processed by DTC, while at other times it may be that DTC offers an option that is not
offered by the issuer. The message will contain all known options for the scenarios outlined above.
Each option will be ‘flagged’ if it is not processed by DTC or if it is not offered by the issuer. It is also
possible that the default option differs depending on source of the option: DTC or Issuer. These will
also be flagged where appropriate.
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
20
Key Concepts
The following table summarizes the DTC and Issuer Options scenarios:
Option Scenario
Issuer Supported
Option Flag
DTC Supported
Option Flag
Remarks
Issuer offers the
option. DTC
supports
(processes) the
option.
Y
Y
No special tag in the message. Option
support by the Issuer and DTC is
assumed unless specified otherwise.
Issuer offers the
option. DTC does
not support
(process) the
option.
Y
N
Option Features element in the core
message will have code NOSE to
identify this scenario. Securities must
be delivered out of DTC for
participants wishing to take part in the
specific event option.
Issuer does not
offer the option.
DTC supports
(processes) the
option.
N
Y
Option Features element in the core
message will have code AVSO to
identify this scenario. The option is not
supported by the Issuer - only DTC
participants can take part.
The following table summarizes the DTC and Issuer default Option scenarios:
Option Scenario
Issuer Supported
Option Flag
DTC Supported
Option Flag
Issuer offers the
option. DTC
supports
(processes) the
option. Both DTC
and Issuer
announce it as the
default option.
Y
Y
Issuer offers the
option. DTC
supports
(processes) the
option, but
announces
different options
as the default
(DTC DRIP).
Y
N
Remarks
Note: Events with a single option are
required to have a default option,
even if a mandatory event, per ISO
standards.
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
21
Key Concepts
Option Scenario
Issuer Supported
Option Flag
DTC Supported
Option Flag
DTC does not
support Issuer’s
Default Option.
Y
N
DTC has an
additional option
(that Issuer does
not offer) that
option is
designated as
default at DTC.
N
Y
Remarks
The primary creators of corporate action content are the issuer / agent, depository and the stock
exchange. DTCC’s data model, and to some extent ISO, accommodates the different ‘owners’ of the
information either explicitly or implicitly. While the ‘ownership’ of specific data elements is mostly
straightforward, there are some concepts that DTCC will differentiate, as DTC data and Issuer data
are not noted as such in the ISO model.
The following table provides a summary on data element ‘ownership’:
Scenario
Details
Example
DTC Only
Information
Information that is created by DTC in its •
capacity as the Depository for DTC
•
eligible securities or for DTC specific
services.
The data element will be prefaced by
‘DTC’.
DTC Last Day for Deposit
DTC Chill Release Date for Deposit
Issuer Only
Information
Information only supplied by the issuer. •
•
Does not have specific notation.
Record date
Proration date
Stock Exchange
Only Information
Information only supplied by the stock
exchange.
Does not have specific notation.
Ex-date
•
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
22
Key Concepts
Scenario
DTC and Issuer
Data Elements
Details
Similar information that both the issuer •
and DTC provide.
•
•
•
Custodian data is usually prefaced by
‘DTC’ and the issuer by ‘Declared’ or
‘Actual’.
Example
Actual Expiration Date
Declared Cash Rate
DTC Instruction Expiration Date
DTC Cash Rate
Message Structure
The DTCC corporate actions data model is aligned with ISO. There are, however, differences in the
representation. This section will explain the relationship between the two models using a corporate
actions announcement as an example.
The DTCC Corporate Action Model has several “levels”. The levels are associated with ISO Corporate
Action Notifications either directly or based on a condition. The multiplicity (noted using UML
notation as 0…1, 0…in the Message Usage Guideline for the CANO) is displayed for levels and
message building blocks, as well as for associations between the DTCC levels and the ISO message
building blocks or components.
Details on the “payload” (core and extension) of the ISO 20022 message will be explored in depth
immediately below. In addition to the core and extension component of the message, there are two
header components to be aware of:
•
•
Network Header – different formats for the SWIFT and SMART networks
Business Application Header (BAH) – Standard for all DTCC ISO 20022 messages
The payload of the message is where you will find important business information related to the
corporate action event. It consists of the core and the extension components. The core consists of a
number of data ‘levels’, a hierarchy of logical groups that contain related information.
The main data levels are:
•
•
Event level: data that applies to the entire corporate action, such as the event type, and
mandatory/voluntary indicator; the level is mandatory and non-repetitive;
Option level: data that applies to a single option only, such as the option number, option
type, and whether the option is supported by DTC and/or the issuer. Note that in the ISO
20022 data model, even a mandatory event with a single payout is defined as having one
option; and,
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
23
Key Concepts
•
Payout level: data for each payout such as the identity of the outturn security or the rate of
the security or cash payout; there may be one or more payouts per option; payout levels are
distinguished by a payout number (sequential order) and payout type.
These data levels are also built into the structure of the extension component. Where there are
DTCC data elements not included in the ISO message structure, the element is placed in the
structured extension at the appropriate level. For repetitive levels such as option or payout, it is
possible to identify to which instance of the data the extended element belongs.
All ’Mandatory’ and ‘Mandatory with Option’ events will require a ‘default option’ to be present to
indicate which option will be given to the holder in absence of an election.
True voluntary events (i.e. Tender Offer) will include an option zero (0). Option zero will be
published as ‘999’ in the ISO message. The ‘0’ option will either represent the option to abstain or to
take no action. These options are generated to represent the opportunity for the security holder to
perform no action with regards to this event and assist clients with internal processing. Events that
are considered ‘mandatory’ or ‘mandatory with options’ will not include this 0 option.
Where possible, each option will be named based upon ISO definitions. However, DTCC has also
included a provision for several non-compliant option types, such as ‘Foreign Currency Payments’.
DTCC has defined those special option types in the extension schema. When such an option is
offered, it will be noted the options outturn in in the core message (SECU for reinvestment, CASH for
currency payment) and the ExtendedOptionFeaturecode will be provided in the extension
component. The Message Usage Guideline, a message specification document, reflects these
definitions in detail.
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
24
The following table provides a summary of the ISO message representation of DTC specific option
types.
New Model Option
Type
Option Description
ISO Option
Type
Abstain
Holder elects to abstain from
voting on the proposal.
ABST
Buy
Holder elects to purchase
additional securities.
BUYA
Cash and Securities
Holder will receive a
combination of cash and
securities.
CASE
Cash
Holder will receive cash.
CASH
Consent and Exchange Holder submits securities for
exchange in addition to voting to
approve the proposal.
CEXC
Consent Denied
Holder elects not to approve the
proposal.
CONN
Consent Granted
Holder elects to approve the
proposal.
CONY
Consent and Tender
Holder submits securities for
tender in addition to voting to
approve the proposal.
CTEN
Exercise
Holder elects to exercise the
intermediate security or
warrant.
EXER
Subscribe
Holder elects to exercise their
right to subscribe to additional
securities based upon the
existing position.
EXER
Lapse
Holder does not take any action
and allows the rights associated
to the security to become null
and void. Holder may also elect
to allow the security to lapse.
LAPS
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
(Extended) DTCC
OptionFeature
25
Retain
Holder elects to keep/retain
their existing security rather
than receive a new security.
MPUT
No Action
Holder elects not to take part in
the event.
NOAC
Convert
Holder elects to convert security
into a new security, cash or a
combination of cash and
securities.
DRIP
Holder elects to receive
additional securities instead of
the cash distribution. Option
may be declared by the issuer or
as a service offered by DTC.
SECU
Other
Applies when a specific Option
code cannot be used.
OTHR
Foreign Tax
Unfavorable
DTC Only Option. The event and
Security are eligible for the
Foreign Tax Relief service at
DTC. Option to select
unfavorable tax rate. The
Foreign Tax Unfavorable option
is the default option.
CASH
FORU
Foreign Tax Favorable
DTC Only Option. The event and
Security are eligible for the
Foreign Tax Relief service at
DTC. Participant receives their
payment at a favorable tax
withholding rate.
CASH
FORF
Foreign Tax Exempt
DTC Only Option. The event and
Security are eligible for the
Foreign Tax Relief service at
DTC. Participant is exempt from
any tax withholding.
CASH
FORX
DRIP Unfavorable
DTC Only Option. The event and
Security are eligible for both the
Dividend Reinvestment and
Foreign Tax Services at DTCC.
Participants will receive
SECU
DRPU
PRUN
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
26
additional shares and the Tax
Withholding on those shares will
be at the unfavorable tax rate.
DRIP Favorable
DTC Only Option. The event and
Security are eligible for both the
Dividend Reinvestment and
Foreign Tax Relief Services at
DTCC. Participants will receive
additional shares and the tax
withholding on those shares will
be at the favorable tax rate.
SECU
DRPF
DRIP Exempt
DTC Only Option. The event and
Security are eligible for both the
Dividend Reinvestment and the
Foreign Tax Relief service at
DTCC. Participants will receive
additional shares and will be
exempt from any tax
withholding.
SECU
DRPX
Foreign Currency
Payment
DTC Only Option The event and
Security are eligible for Foreign
Currency Payment Service at
DTCC. Participants will receive
their distribution in the Foreign
Currency instructed.
CASH
FCPP
Foreign Currency
Payment Unfavorable
DTC Only Option. The event and
Security are eligible for both the
Foreign Currency and Foreign
Tax Services at DTCC.
Participants will receive their
distribution in a foreign currency
and the tax withholding on that
distribution will be subject to
unfavorable tax withholding.
CASH
FCPU
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
27
Foreign Currency
Payment Favorable
DTC Only Option. The event and
Security are eligible for both the
Foreign Currency and Foreign
Tax Services at DTCC.
Participants will receive their
distribution in a Foreign
Currency and the Tax
Withholding on that distribution
will be subject to favorable tax
withholding.
CASH
FCPF
Foreign Currency
Payment Exempt
DTC Only Option. The event and
Security are eligible for both the
Foreign Currency and Foreign
Tax Services at DTCC.
Participants will receive their
distribution in a foreign currency
and will be exempt from any tax
withholding.
CASH
FCPX
Tax Credit
DTC only option. Notification of
a tax credit.
OTHR
Subscribe and
Oversubscribe
Holder elects to subscribe to
more securities than underlying
securities position allows.
OVER
Securities
Holder will receive securities.
SECU
Sell
Holder elects to sell their
security.
SLLE
Payout level carries similar principles and logic to CashMovementDetails or
SecurityMovementDetails (repetitive components in the CorporateActionOptionDetails
building block). However, there is a key difference – the DTCC data model factored out rate
types from the rate itself (consideration for flexibility). Payouts contain information fields such
as “generic” rate or price that is qualified by the payout type. ISO movement sections generally
have separate rate fields within one Cash / Security / MovementDetails component. To
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
28
maintain the straightforward relationship every Payout will be allocated Cash / Security /
MovementDetails in the ISO message.
The following additional DTCC levels (not including Event, Option, Payout explained above) are
accommodated within the ISO 20022 message as follows:
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
29
Key Concepts
DTCC Level
Details
ISO Fields
Comment
Event Text
Contains additional
information related to the
event in text form, where
there may be none, one or
many occurrences of Event
Text, distinguished by Text
Type, and one Text Type per
event.
Data from the event text level
will populate ISO fields in
AdditionalInformation message
components.
This level is optional
and repetitive.
Agent
Information that applies to
details of the agent related
to the event, where there
may be none, one or many
agents, distinguished by
Agent Type, and only one
occurrence of an Agent
Type per event.
ISO message has separate
message building blocks for
each agent.
Data elements from the Agent
level will populate ISO fields in
appropriate “agent” block
based on the following rules:
This level is optional
and repetitive.
Position
Agent details are factored
into one level and qualified
by the Agent Type element.
Issuer Agent
Event Agent
Physical
(Bearer)
Securities Agent
Drop Agent
Drop Agent
Information
Information
Agent
Agent
Solicitation
Solicitation
Agent
Agent
Agent
Transfer Agent
Drop Agent
(Bearer)
Others
Related
Events
Contains reference to the
related events, where there
may be none, one, or many
Related Events per event.
Length
Event Agent
Remarketing
Non-ISO elements or
Non-ISO agent types
are extended.
Reselling Agent
Paying Agent
Extended
Extended
Data elements from the Related
Events level populate ISO fields
in EventsLinkage message
building block.
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
This level is optional
and repetitive.
Non-ISO elements
are extended.
30
Key Concepts
DTCC Level
Details
ISO Fields
Comment
Lottery
Contains details about the
lottery (e.g., total called
quantity, type of the lottery,
etc.) when applicable, there
can be none or one Lottery
record per event.
Data elements from the lottery
level populate ISO fields in the
CorporateActionDetails
message building block.
This level is optional
and non-repetitive in
the message. The
DTC Browser will
provide all lotteries.
Message will contain
details of the most
recent one.
Non-ISO elements
are extended.
Certificate
Contains details about the
called certificates in
corporate action events
where the issuer chose to
redeem part of the
outstanding issue which
may include specific
certificate numbers.
This level is optional
and repetitive.
This level is
extended.
ISO 20022 Message Delivery and Network Protocols
The transformation project introduces the new ISO 20022 messaging alongside a browser-based
Graphical User Interface (GUI). Message subscriptions are available to allow clients to control the
flow of data.
Messages are transported using one of the two networks, with the following protocols:
•
•
SMART (DTCC Proprietary Network)
o MQ (Real time single threaded messages)
o NDM (File based protocol which runs in 16 batches throughout the day)
o FTP (File based protocol which runs in 16 batches throughout the day)
SWIFT
o InterAct Store and Forward (Real time single threaded messages)
o FileAct (File based protocol which runs in 16 batches throughout the day)
SMART
Customers considering using the SMART network should contact their DTCC Relationship Manager
to determine if they have a SMART circuit currently in place. If so, DTCC will perform bandwidth
utilization studies on the current lines to determine if an upgrade to a larger circuit is necessary.
There is no cost for transmitting messages via SMART, but customers do have to pay for the circuit
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
31
Key Concepts
itself. Pricing – which is a direct pass-through from the telephone company servicing the line – is
fixed based on circuit size.
SWIFT
Customers considering the SWIFT network should contact their SWIFT Relationship Manager for
provisioning and pricing details.
These communication methods allow DTCC clients to benefit from:
•
•
Increased availability and timeliness for corporate actions data: Customers benefit from
the enhanced processing engine that allows for CA messages to be updated and published
throughout the day. Updates are applied to existing events at intervals, for dissemination.
Subscriptions: Subscription options exist for three main event groups: Distributions,
Reorganizations and Redemptions. Within each event group, clients are able to choose to
receive messages intra-day or end of day using various message protocols, depending on the
criticality of the event. Additional information can be found immediately below.
Subscription Options
DTCC provides a subscription model to allow clients to choose how they receive their messages.
Subscriptions allow clients to choose:
•
•
•
Event groups such as Distributions, Redemptions, Reorganizations, and several others
The timing and frequency of announcements;
To receive events based on “final” or “non-final” (Incomplete) workflow statuses.
The project introduces frequent intra-day announcements of corporate actions data.
Customers are able to set subscription options to select the receipt of data from DTCC in a variety of
methods, including timing and content. For example, DTCC allows the customer to choose how
frequently data is received based on their needs. In the event a customer chooses to receive data
less frequently throughout the day, unread event messages will remain queued for each customer
until the next time the customer extracts the data. In addition to the frequent availability of new
messages, subscription options allow customers to configure the data in a variety of ways. The
ability to customize the receipt of data allows all participants to optimize the service to suit their
specific business needs.
Dividend Distribution, Redemption, Maturity (Cash) and Reorganization event group data is updated
and available through the DTCC ISO 20022 messaging hub throughout each business day.
Historically, Participants have accessed CA event information using the DTCC Computer-toComputer Facility (CCF) file transmissions once at the end of the business day (or in the case of
certain situations, in hourly slices throughout the day). With the new messaging, clients can receive
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
32
Key Concepts
messages in real time, however, ISO 20022 allows events to be made available in an on-demand
schedule that suits each customer. Customers who wish to continue with the current Proprietary
Files will still have the option to do so beyond their sunset date, for a fee.
Participants are able to select, for each category of events, whether to receive notifications intraday or at the end of the day.
The following table illustrates the subscription options available for the different types of corporate
action announcement:
CA Type
Real Time Option - MQ
Timing Options* - File
Distribution
All announcements available in
real time
All announcements available
intraday, at 1:30, 3:30, 6:00,
9:00, 11:00, 12:00, 13:00, 14:00,
15:00, 16:00, 17:00, 18:00,
19:00, 20:00, 21:00, 23:30
Redemption
All announcements available in
real time
All announcements available
intraday, at 1:30, 3:30, 6:00,
9:00, 11:00, 12:00, 13:00, 14:00,
15:00, 16:00, 17:00, 18:00,
19:00, 20:00, 21:00, 23:30
Reorganization
All announcements available in
real time
All announcements available
intraday, at 1:30, 3:30, 6:00,
9:00, 11:00, 12:00, 13:00, 14:00,
15:00, 16:00, 17:00, 18:00,
19:00, 20:00, 21:00, 23:30
*Timing Options – a client may take one, all or any combination of times listed
The following table illustrates the subscription options available for the different types of corporate
action lifecycle messages:
Message Type
CANO-E: CA Notification with Eligible Balance
(Record Date Entitlements)
Availability
Via MQ and via File
Daily, 2 p.m. ET* (P&I)
-and/orDaily 11:30 p.m. ET (P&I, MMI)
*2 p.m. ET CANO-E for P&I is ONLY for late
announcements created before 1:45 p.m. on
payable date
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
33
Key Concepts
Message Type
CAPA CA: Movement Preliminary Advice
(Projected Payments)
Availability
All new messages sent on pay date minus 7 days
and REPL (replacement/delta) pay date minus 1*
–or—
All new messages sent each day thereafter until
REPL messages pay date minus 1 day
Daily 1:30 a.m. ET (CAD, P&I, MMI STKD)
•
Processing triggered at 1 a.m. and can run up
until 2 a.m. ET
• MQ messages can be received starting ~1:02
a.m., ending by 2 a.m. ET
• Files (depending on volume) are usually
delivered ~1:30 a.m. ET
*Pay date minus 1 is actually pay date at ~1 a.m. ET
CAPC: CA Preliminary Advice Cancellation
(Projected Payments Cancellation) (New)
Via MQ – Real time, every half hour between 10:30
a.m. ET and 6:30 p.m. ET plus 1:30 a.m. (CAD, P&I,
MMI, STKD)
Via File -- Daily 1:30 a.m. ET (CAD, P&I, MMI STKD)
CACO: CA Movement Confirmation
(Allocations/Payments)
Via MQ – Real time, every 20 minutes between
8:30 a.m. ET and 4:30 p.m. ET (CAD, P&I, MMI)
Via MQ – Real time, between 8:20 a.m. ET and 7
p.m. ET (STKD)
Via File – Daily 4 p.m. ET (P&I, MMI) –and/orVia file – Daily 7 p.m. ET and/or 1:30 a.m. ET (STKD)
CARE: CA Movement Reversal Advice (New)
Via MQ – Real time, every 20 minutes between
8:30 a.m. ET and 4:30 p.m. ET (CAD, P&I)
Via File – Daily 4 p.m. ET (P&I)
CAPS: CA Event Processing Status Advice
(Unallocated Positions)
Daily at 4 p.m. ET (CAD, MMI)
–and/or-Daily at 5 p.m. ET (P&I)
Daily at 7 p.m. ET (P&I, STKD)
Times are the same for file and MQ except real
time option for P&I, hourly between 1 p.m. and 7
p.m. ET
Clients can replace the manual instruction process via CA Web with automated instruction
messaging via ISO 20022 for:
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
34
Key Concepts
•
•
•
•
DRIPS
Optional Distributions
Foreign Currency
Foreign Tax Withholding
The following table illustrates the subscription options available for the different types of corporate
action lifecycle messages:
CAST: CA Instruction Statement Report (Displays
all elected and unelected positions, by
event)(New)
Via MQ or batch file
Once, end of day at 11:00 p.m. ET
•
Inbound CAIN/CAIC and Outbound CAIS/CACS
Message will be sent each day, 5 days
before cut off date and up until that date
Via MQ only – Real time, for the following
services only
•
•
•
•
Foreign Currency Payments
Foreign Tax Withholding (TaxRelief)
Optional Distributions
DRIPS
As part of the On-boarding process detailed in Section 5 of this document, clients should work with
their Relationship Manager and the DTCC CA Transformation support team to understand the
various messaging options and, ultimately, how to subscribe to them.
The following are the different ISO message groups that are available:
ISO 20022 Message
Group
Distributions
Redemptions
Reorganization
Announcements
In Production
(Nov 2011)
In Production
(Nov 2011)
In Production
(Nov 2011)
Entitlements &
Allocations
In Production
(Feb 2013)
Q3 2015
TBD
Instructions
In Production
(March 2015)
N/A
TBD
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
35
Key Concepts
CCF Legacy File Interface and Scheduling
Existing files will continue to be made available according to the current schedule. The 20022
messaging format and hub is compatible with the SWIFT, SMART and MQ messaging standards.
DTCC also provides additional messaging protocols -- FileAct for SWIFT; and NDM, File and FTP for
SMART.
Data Files and Messaging Co-Existence
DTCC plans to begin decommissioning the legacy files beginning December 31, 2015. Until then,
DTCC will support both legacy files (CCF) and the new ISO 20022 messages. During this period there
will be limited changes -- except in Phase 5 to Reorg processing -- to the legacy files.
Technical Transition Considerations
The format of the ISO 20022 CA event differs from that of the DTC CCF Files. Customers should
prepare for the transition to ISO 20022 by viewing the technical specifications available on DTCC’s
website: www.dtcc.com/catransformation and ISO 20022 model and repository on
www.iso20022.org
While the event-based messages in ISO 20022 offer complete coverage of the Function Code driven
CCF files in terms of data elements, the structure of the ISO Messages allows for multiple payouts,
options and information not available from DTC in the past. The processing of the new ISO 20022
messages will require processing changes for customers who currently utilize the CCF legacy files.
Customer Testing
DTCC understands that customers will have to make changes to incorporate the new ISO 20022
messages into their internal systems and is prepared to support client testing efforts. Please forward
all questions to the corporate actions transformation mailbox at [email protected]. The
DTC corporate actions team will also provide additional assistance via periodic meetings, as needed.
Parallel testing with DTC is encouraged. Clients should take advantage of the period of time when
CCF files are still available concurrently with ISO 20022 messages.
NOTE: ISO 20022 sample messages are available upon request.
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
36
DTC Services
DTC Services
DTC - Canadian Dollar Settlement
DTC settles in US dollars except in the case of subscription services. DTC offers a service to its clients
for Canadian Dollar Settlement whereby clients may submit instructions to receive cash proceeds
related to a reorganization event in Canadian Dollars (CAD). This service is only available on
Canadian issues. Participants that are registered for this service will have the opportunity to elect an
option resulting in an issuance of CAD from DTC.
In addition to this service, DTC provides an election option that allows clients to request CAD
payments for those clients who are not subscribed to the Canadian Dollar Settlement service. Clients
electing in this manner are advised that required documentation and wire instructions should go
directly to the agent. These instructions will request payment in CAD. When a client elects this
option, DTC will move the position into a holding account until the agent has advised that payment
has been made. Once payment is confirmed by the agent, DTC will then remove the position. This
option is differentiated using a Contra CUSIP that includes “DEL” in the 4th, 5th and 6th bytes of the
Contra number. This code represents the fact that DTC will deliver off the position.
The Canadian Dollar Settlement service is offered whenever the payment is declared CAD. For
example, in the legacy system, on Merger events the 72 (cash merger) or 90 (cash and securities
merger) record was used to pay clients who did not submit instructions requesting payment in CAD.
In addition to this 72/90 Activity Code, there was a 52 (tender) record representing each of the
Canadian instructions (Canadian Dollar Settlement paid by DTC and CAD payment allocated directly
from the agent), from which clients could submit the instruction.
In the new data model, these elections are represented as different options within a single event.
While the event is a mandatory corporate action, DTC offers settlement options, so there are
additional DTC only options announced on the record. The Issuer option of Cash or Cash and
Securities is declared (by the Issuer) and DTC (as the custodian) default option. Additional options
are included in the event to allow clients to elect to receive funds in CAD.
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
37
DTC Services
Foreign Tax Services
Foreign Tax Services is available to all DTC clients. It provides the opportunity for clients to elect on behalf of qualifying beneficial
owners to receive a reduced rate of foreign withholding tax as a result of tax relief arrangements that DTC has set-up with foreign
issuers, agents and/or the tax authorities. In relief-at-source markets, clients who submitted tax elections and have provided the
appropriate beneficial owner information and/or documentation to the agent, if required, will receive their distribution based on those
tax elections on Payable Date. Clients, who did not submit tax elections or failed to provide the agent with the appropriate beneficial
owner information and/or documentation, if required, will be paid at the Unfavorable Tax Withholding Rate. In post payable date tax
refund markets, clients will receive the Distribution on the Payable Date at the Unfavorable Tax Withholding Rate and a tax refund
payment shortly thereafter based on the client tax elections. For clients electing to receive the Distribution in USD, the withholding tax
is deducted at the appropriate rate in the foreign currency and submitted to the Tax Authorities. The remaining distribution is
converted to USD and the payment is processed to the client.
Please see the Cash Dividend scenario below for details on a cash dividend eligible for Foreign Tax Withholding. Please note that while
the scenario shows a single favorable tax rate, there may be multiple favorable tax rate options. The number of favorable options is
dependent upon the treaty agreement with the particular country in which the security is issued.
Scenario#5
Cash Dividend Distribution Eligible for DTC Foreign Tax Services
DTCC Event ISO Event Extended DTCC Sub
Type
Code
Event
Event
Type
Type
Code
Cash
Dividend
DVCA
-
-
Extended
Sub Event
Type Code
Mandatory/Voluntary
Issuer
-
MAND
DTC
CHOS
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
DTCC
Option Type
DTCC Option Description
FORU
DTCC Foreign Unfavorable Tax
FORX
DTCC Foreign Exempt Tax
FORF
DTCC Foreign Favorable Tax
ISO
CHOS
38
DTC Services
ISO
Option
Code
Extended
Option
Feature
Code
Option
Declared
(Supported)
Default
Option Flag
Issuer
DTC
Issuer
DTC
DTCC
Payout
Type
Principal ISO
Movement Rate Tag
DTC
Function/Activity
Code
DTC Sequence #
CASH
FORU
Y
Y
Y
Y
Dividend
Gross Dividend Rate /
INCO Net Dividend
Rate
09
90X
CASH
FORX
N
y
N
N
Dividend
Gross Dividend Rate /
INCO Net Dividend
Rate
35
50X
CASH
FORF
N
Y
N
N
Dividend
Gross Dividend Rate /
INCO Net Dividend
Rate
37
70X
Foreign Currency Payments (FCP)
The Foreign Currency Payments service allows clients to elect to receive periodic interest payments on all or part of the record date
position for certain foreign currency denominated debt securities through DTC in U.S. dollars, or directly from the paying agent in the
currency in which the issue is denominated.
By using FCP, clients avoid certain foreign currency fluctuations by receiving the payments in the desired currency.
Please see the Cash Dividend scenario below for a more descriptive explanation as to the options made available to DTC clients. The
scenario demonstrates the option to elect foreign currency payment. The foreign tax service may also exist on an issue that is eligible
for foreign currency. Due to the possibility of these multiple services existing on a single event, the new data model includes options
specific to these possible situations.
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
39
DTC Services
Scenario#7
Cash Dividend Distribution Eligible for DTC Foreign Currency Services
DTCC Event ISO Event Extended DTCC Sub
Type
Code
Event
Event
Type
Type
Code
Cash
Dividend
ISO
Option
Code
DVCA
Extended
Option
Feature
Code
CASH
CASH
FCPP
-
Extended
Sub Event
Type Code
Issuer
-
Option
Declared
(Supported)
Mandatory/Voluntary
-
Default
Option Flag
MAND
DTC
CHOS
DTCC
Option Type
DTCC Option Description
ISO
CHOS
Cash
Holder will receive cash
FCPP
DTCC Foreign Currency
Processing
DTCC
Payout
Type
Principal ISO
Movement Rate Tag
DTC
Function/Activity
Code
DTC Sequence #
Issuer
DTC
Issuer
DTC
Y
Y
Y
Y
Dividend
Gross Dividend Rate /
INCO Net Dividend
Rate
08
00X
N
y
N
N
Dividend
Gross Dividend Rate /
INCO Net Dividend
Rate
-
-
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
40
DTC Services
DRIP Program
DTC offers clients the option to purchase stock with the proceeds that would be disbursed from
a cash dividend instead of receiving the cash payment. Certain issues are registered for this
program. Instructions can be submitted per event. This feature also allows for a standing
instruction which, once elected will become the default setting for future payments made on
that security for the client.
This program allows clients to maintain a dividend reinvestment eligible issue on deposit at DTC
without losing the benefit of the issuer’s dividend reinvestment plan.
It also works in conjunction with the foreign tax relief service by allowing clients to reinvest the
net proceeds and have the appropriate tax withheld for eligible foreign securities. The new data
model supports all the possible options that may be available.
Please see the Cash Dividend scenario document below for a more descriptive explanation as to
the options made available to DTC clients.
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
41
DTC Services
Scenario#6
Cash Dividend Distribution Eligible for the DTC DRIP Program with DTC Foreign Tax Services
DTCC Event ISO Event Extended DTCC Sub
Type
Code
Event
Event
Type
Type
Code
Cash
Dividend
DVCA
-
-
Extended
Sub Event
Type Code
Mandatory/Voluntary
Issuer
-
MAND
DTC
CHOS
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
DTCC
Option
Type
DTCC Option
Description
ISO Option
Code
ISO
FORU
DTCC Foreign
Unfavorable
Tax
CASH
FORX
DTCC Foreign
Exempt Tax
CASH
FORF
DTCC Foreign
Favorable Tax
CASH
DRPU
DTCC Dividend
Reinvestment
Service
Unfavorable
SECU
DRPF
DTCC Dividend
Reinvestment
Service
Unfavorable
SECU
DRPX
DTCC Dividend
Reinvestment
Service Exempt
SECU
CHOS
42
DTC Services
Extended
Option
Feature Code
Option
Declared
(Supported)
Default Option
Flag
DTCC Payout Type
Principal ISO
Movement Rate
Tag
DTC
Function/Activity
Code
DTC Sequence #
Issuer
DTC
Issuer
DTC
FORU
Y
Y
Y
Y
Dividend
Gross Dividend Rate /
INCO Net Dividend
Rate
09
90X
FORX
N
y
N
N
Dividend
Gross Dividend Rate /
INCO Net Dividend
Rate
35
50X
FORF
N
Y
N
N
Dividend
Gross Dividend Rate /
INCO Net Dividend
Rate
37
70X
DRPU
N
Y
N
N
Security
Additional Quantity
For Existing Securities
30
90X
DRPF
N
Y
N
N
Security
Additional Quantity
For Existing Securities
30
50X
DRPX
N
Y
N
N
Security
Additional Quantity
For Existing Securities
30
70X
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
43
Documentation Guide
Documentation Guide
This section introduces a range of supporting documents that have been prepared by DTCC, and
explains how they can be used to build an understanding of the new model and the migration
from existing message files to the ISO 20022 equivalents.
Supporting Documentation
The supporting documentation provides information about the new message models and the
mapping of data fields from legacy files to the corresponding data fields in the new model and in
the new ISO 20022 message structures.
The main set of documentation is comprised of the following and can be found at
www.dtcc.com/catransformation :
•
•
•
•
•
Corporate Action Data Dictionary spreadsheets;
Corporate Action Scenario documents for announcements;
Legacy Mapping spreadsheet for announcements
Message Usage Guideline (MUG) ; and
Event Level Message templates
The Corporate Action Data Dictionary spreadsheet provides an overview of each event type in
the ISO 20022 model and a comparison with existing DTC event types (function codes). It also
provides a list of data elements, their level, and a cross reference from existing DTC elements to
the new ISO 20022 element. An indication is also provided as to the level of compliance with
global and U.S. industry norms.
DTCC has created Corporate Action Event Scenario documents for all of the supported event
types. The information provided demonstrates the relationship between existing DTCC legacy
systems and the new event-based data model. ISO values that will be used in the new messages
are included for the event type, option type and payout type details which provide specific
mapping guidelines.
The Legacy Mapping spreadsheets can be used in conjunction with the other documents to
provide a comprehensive cross reference for each existing DTC file. It provides a basis of
understanding for the relationship between the new and old. The spreadsheet format is
designed as a reference tool to easily search and filter the data contents.
The Message Usage Guideline is a document allowed by the ISO 20022 standard. It describes
how one or more messages are to be used in the context of a specific business context (i.e.
community of users). DTCC has prepared a MUG detailing how each ISO 20022 message and the
supplementary data structures are to be used.
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Documentation Guide
Starting with the Message Usage Guideline for announcements, the Event Level Message
Templates display at the event level for both the core and extension data only those data
elements that apply to a particular event type, for example, partial call. The templates are
available at https://mystandards.swift.com.
Corporate Action Data Dictionaries
DTC provides documentation describing the data model as it relates to announcements, the
corporate actions lifecycle, and instructions. All three data dictionaries are presented in Excel
spreadsheet form describing the new data model; it’s relation to the existing DTCC legacy model
and ISO.
Each spreadsheet contains a number of tabs. It is recommended that users delve into each one
to become familiar with the information that is provided, and its location. Note that updates,
adds and deletes to any item in the dictionary are noted in the dictionary itself.
The Announcements Data Dictionary includes the following tabs. It is recommended that users
start with the Legend tab as it provides a description of the information provided in the
spreadsheet’s remaining tabs, which offer specific data element detail.
•
•
•
•
•
•
•
•
•
•
•
Legend
Events
Event Descriptions
Elements
Options
Payouts
Security Rates
Cash Rates
Event Statuses
Asset Types
NRA Tax Codes
Data is arranged in the spreadsheet in groups.
The new DTCC data model:
•
•
•
•
Event Name: the event name from the new model;
Sub Event Name: the sub event name from the new model;
Mandatory / Mandatory with Options / Voluntary Indicator – Issuer: the nature of the
event at the issuer
Mandatory / Mandatory with Options / Voluntary Indicator – DTC: the nature of the
event at DTC.
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Documentation Guide
DTC Legacy Data Model:
•
•
•
DTCC Event Group: the event group (distribution, redemption, reorganization);
Function Code / Activity Code: the DTCC function code or activity code;
Function Code Name / Activity Code Name: the DTCC function code name or activity
code name.
ISO model:
•
•
•
•
•
•
•
•
Event Code: the ISO event code;
Event Type Name: where applicable, additional standard qualifiers that support the
event identification;
Additional Indicator on the message: an additional indicator in the extension structure
where necessary to distinguish the event type;
Event Processing Type: the ISO event processing type (general, distribution,
reorganization); note that this is different from the DTCC classification: an ISO
reorganization incorporates both DTCC redemption and DTCC reorganization;
Extended (DTCC) Event Type: the DTCC event type, carried in the extension structure
for additional granularity;
Extended (DTCC) Sub Event Type: the DTCC sub event type, carried in the extension
structure for additional granularity;
Extended Event Group: the DTCC event group, carried in the extension structure for
additional information;
SMPG EIG Compliance: an indication of how well the new event model complies with
the Event Interpretation Grid formulated by the Securities Market Practice Group
(SMPG). The EIG has both a global flavor and a national flavor if that is different from
the global.
New ISO 20022 message considerations:
•
•
•
Additional Details to ISO Association Rule: rules or notes to aid in mapping the data
element from legacy to ISO;
CANO CSD: where the element can be found in the CANO message CSD product
mapping;
CANO CSD EXTENSION: where the element can be found in the CANO message CSD
product mapping extension.
The Distributions Elections Dictionary includes tabs for the five message types associated with
distributions elections – CAIN, CAIS, CAIC and CAST, with rules and information about their
usage. For additional detail, see the User Guide: ISO 20022 Messaging for Instructions, DTCC
Corporate Actions.
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Documentation Guide
The Entitlements and Allocations Data Dictionary includes tabs for each ISO lifecycle message
type, an explanation of what it is, which event group (Distributions, Redemptions,
Reorganizations) it is applicable to, and the name of the legacy CCF file this information can be
traced back to. For additional detail, see the User Guide: ISO 20022 Messaging for Entitlements
and Allocations, DTCC Corporate Actions.
Corporate Action Event Scenarios
Within the Corporate Action Event Scenario documents, information for each event type
scenario is presented in a common format. The following section explains what information will
be provided per column heading. A separate comment section following the detailed scenarios
may exist to further explain specific details that are not comprehensive within the column
headings or values therein. The Corporate Action Event Scenario documents can be found at
http://www.dtcc.com/news/2013/january/01/scenarios.aspx
Event Type
Scenario#4
Cash Dividend Distribution Eligible for DTC DRIP program
DTCC Event ISO Event Extended DTCC Sub Extended
Type
Code
Event
Event
Sub Event
Type
Type
Type Code
Code
Cash
Dividend
•
•
•
DVCA
-
DRIP (DTC
Only)
-
Mandatory/Voluntary
Issuer
DTC
ISO
MAND
CHOS
CHOS
Scenario: Identifies the event and any additional explanation to assist in differentiating
this scenario from another.
Event Type: <New Data Model> identifies the new event name as defined within the
published “Corporate Action Events Dictionary”. The ISO codes that will be used are
presented. ‘OTHR’ will be used where DTC presents an event type that is not within the
ISO standard.
Sub Event Type: <New Data Model> identifies the new sub event type’s name as
defined within the published “Corporate Action Events Dictionary”. The sub event type
is a further classification of the event which provides a more granular definition of
corporate action. This information is in the event level.
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Documentation Guide
Nature of the Event and Option Type
Mandatory/Voluntary
Issuer
MAND
•
DTC
ISO
CHOS
CHOS
DTCC
Option
Type
DTCC Option
Description
Cash
Holder will
receive cash
DDRP
DTCC Dividend
Reinvestment
Service
Mandatory / Mandatory with Options / Voluntary Indicator - Issuer/DTC: <New Data
Model> indicates the nature of the event. A value of Mandatory indicates that holders
do not have any options or elections to submit. A value of Voluntary indicates that the
event requires client instruction in order to participate in the event. A value of
Mandatory with Options indicates that though the event is mandatory, clients have
been afforded options to choose from. Where the value is Mandatory with Options, a
default option will be selected which will be the resulting option for those holders that
do not submit instructions.
o Issuer: This value represents how the event is announced in the market and how it
should be treated following ISO standards.
o DTC: This value represents how the event is being handled by DTC as the custodian
for the corporate action.
In some cases, DTC may differ from how the issuer represents an event due to the number of
options supported and/or additional services provided.
•
•
Option Type: <New Data Model> identifies the option(s) expected to be used for a
specific event/scenario. The ISO codes that will be used are presented.
Description: Provides a description of the option to provide clarity in addition to the ISO
code.
Option Declared
(Supported)
Default Option Flag
Issuer
DTC
Issuer
DTC
Y
Y
Y
Y
N
Y
N
N
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Documentation Guide
Default Option
•
Option Declared - Issuer/DTC: <New Data Model> Identifies which entity will support
the specific option.
o Issuer: This value represents whether or not the option is announced by the Issuer.
o DTC: This value represents whether or not the option is being processed by DTC as
the custodian.
• Default Option Flag - Issuer/DTC: <New Data Model> Identifies which option will be the
default in the scenario. If the security holder does not take any action on the event, the
default option will be the resultant disbursement for the holder.
o Issuer: This value represents whether or not the option is the default option of the
event as announced by the Issuer.
o DTC: This value represents whether or not the option is the default action for DTC
processing.
All ’Mandatory’ and ‘Mandatory with Option’ events will require a ‘default option’ to be present
to indicate which option will be given to the holder in absence of an election. Though there are
cases when DTC’s default option is different, in most cases, DTC will provide the Issuer’s default
as its own.
Payout Details & DTC Legacy values
DTCC Payout
Type
•
•
•
Principal ISO
Movement
Rate Tag
DTC Function /
Activity Code
DTC Sequence #
Dividend
Gross Dividend
Rate / INCO Net
Dividend Rate
08
00X
Security
Additional
Quantity For
Existing
Securities
30
008
Payout Type: <New Data Model> The payout type used to further define the
entitlement received by the security holder.
DTC Function/Activity Code: <Legacy Data Model> Provides the specific mapping to
existing DTC legacy files. In some cases the DTC mapping is not at the event level but
rather at the option and even payout levels.
DTC Sequence #: <Legacy Data Model> Provides further granularity to assist mapping
where options and/or payouts are the same.
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Documentation Guide
Use of data provided
Though in many cases, the default option is defined within the scenario itself, there are
situations for which the default option as defined by either DTC or the issuer can vary based
upon the specific corporate action. In such cases, the value will be populated with “TBD”. This
indicates that the default is defined within the offering documentation and is not
predetermined by the scenario. Additionally, default values shown in some cases are not an
absolute. Though this is the typical corporate action as described in the scenario section, the
default here may not always be the case. This information is provided as reference and should
not be used to map values.
Where the new data model <New Data Model> is represented the value can be found in the ISO
20022 specification documents. The information represented here is for reference. Please refer
to the specification documentation for specific mapping.
Throughout many of the reorganization type events, the 93 (Corporate Action) and 52 (Tender)
Activity Codes are prevalent. Data elements will contribute to the differentiation between when
a 93 envelope can be determined to be one event type versus another. The Offer Type data
element currently residing on the 52 envelope contributes specifically to the differentiation of
the tender offer event types. That in conjunction with other data elements determines the
relationship to the new event based data model. These other indicators/triggers are not
included here as the data element in question varies per event and is particularly granular in
nature. In some cases it is information not currently published on the existing legacy CCF files.
Legacy Mapping Spreadsheet
The Legacy Mapping spreadsheet contains the following columns. (See excerpt below.)
•
•
•
•
•
•
•
Field Name: The field name from the legacy file documentation.
Field Description: The description of the legacy field.
CA Data Element Name (Original): The Corporate Action Data Element Name from the
initial publication.
CA Data Element Name (2007): The Corporate Action Data Element Name from the
previous publication in 2007.
CA Data Element Name (2010): The Corporate Action Data Element Name from the
current publication in the New Event Model.
Status: The status of the legacy field mapping.
o Active - CCF field is mapped
o Added - CCF field mapping is added since previous review
o Deleted - CCF field mapping is removed since previous review
o Not Supported - CCF field is not mapped
Comments: Any additional information pertaining to the mapping of that legacy field.
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Documentation Guide
Field Name
Field name
as in CCF
Field Description
Description of the CCF
Field
CA Data Element
Name (Original)
CA Data Element
Name (2007)
CA Data Element
Name (2010)
CA Data
Reference Field
Name from the
original review
CA Data
Reference Field
Name from Year
2007 review
CA Data
Reference Field
Name from Year
2010 review
Status
Comments
Status of the
CCF Field
mapping
Active - CCF
field is
mapped
Added - CCF
field mapping
is added since
previous
review
Standard ICM Standard ICM
Header
Transaction Header
CUSIP
CUSIP
Format =
bbCCCCCCCCCb
Where b = spaces and
C = 9 character CUSIP
identifier
End Date
Payable Date
ccyymmdd
N/A
Event security ID
Event Security ID
Event Security ID
Anticipated
Payment Date
Anticipated
Payment Date
DTC Anticipated
Payment Date
Declared Payable
Date
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
Not
Supported
Active
Active
DTC
Anticipated
Payment Date
for MMI
Declared
Payable Date
for Non-MMI
51
Documentation Guide
Field Name
Function
Code
Field Description
CA Data Element
Name (Original)
CA Data Element
Name (2007)
CA Data Element
Name (2010)
02 = Stock Split;
03 = Foreign Debt
unfavorable Tax Rate;
04 = Foreign Debt
Favorable Tax Rate;
05 = Foreign Debt
Exempt Tax Rate;
06 = Stock Dividend;
07 = Cash Div. on
Increased Shares;
08 = Cash Dividend;
09 = Foreign Cash
Dividend; etc. (refer to
OTC legacy CCF File
documentation for
complete set of values)
Event Type. Sub
Event Type
DTC Mandatory –
Voluntary, Asset
Type
Event Type
Event Type
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
Sub Event Type
Option Action
Status
Active
Comments
Derived from
Event Type,
Sub Event Type
and Option
Action
52
Documentation Guide
Message Usage Guideline (MUG)
The transformation project implements a specific subset of the ISO 20022 schemas. DTCC has
created additional restrictions to the ISO subset schema (which is already a ‘subset’ schema
since it reflects the restrictions imposed by the ISO 15022 coexistence rules).
DTCC has prepared a Message Usage Guideline to provide details for its participants and clients
on the usage of the ISO 20022 message schema and supplementary data schemas.
The message guidelines and schemas provide details of the ISO 20022 message implementation
by DTCC. They should be read in conjunction with the Message Definition Report for ISO 20022
MX messages Variant II (15022 compatible subset) available from www.swift.com.
The Message Usage Guideline can be used to cross reference ISO 20022 components with their
DTCC name. All DTCC element names, definitions and usage rules listed in the dictionary are
noted with its ISO element in this document.
Each MUG document defines the DTCC implementation of one message schema. The document
is split into three sections:
•
Structure – providing high level outline of the components;
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
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Documentation Guide
•
Guideline – providing element attributes, DTCC Name, Definition, Usage Rules;
6.22.4
EventType
XML Tag: EvtTp
Presence: [1…1]
Definition: Type of corporate action event
The EvtTp block contains the following elements (see datatype
“CorporateActionEventType21Choice__1” on page80 for details)
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55
Documentation Guide
•
Components – technical definition of XML message components.
6.21.1
Code
XML Tag: Cd
Presence: [1…1]
Definition: Event types expressed as a code
Datatype: “CorporateActionEventType12Code” on page 288
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Documentation Guide
ISO 20022 Message Specifications for Announcements
For announcements there is a set of documents consisting of:
•
A Message Usage Guideline (MUG) document listing the subset of the elements within
the schema implemented by DTCC.
Example: Corporate Action Notification seev.031.002.xx.pdf
•
A Message Supplementary Usage Guideline (MUG) document listing the subset of the
elements within the extension schema implemented by DTCC.
Example: Corporate Action Notification Extension supl.001.001.xx.pdf
•
Message Usage Guideline for the business application header
Example: Business Application Header head.001.001.01 Outbound.pdf
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
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Documentation Guide
•
•
•
•
Extension implementation schema(s) (the .xsd file(s)).
Delta Comparison document which shows the additions from the prior year’s usage
guideline by comparing the previous year’s standard to the current year. These are only
available at https://www2.swift.com/mystandards/
Unrestricted message schemas. These are only available at
https://www2.swift.com/mystandards/
DTCC Event Templates. These are only available at
https://www2.swift.com/mystandards/
These corporate action announcement messages cover the following corporate action activities:
•
•
Corporate action event announcements (for preliminary, updated, and confirmed
events).
Corporate action cancellation (for cancelled or deleted events)
ISO 20022 Message Specifications for Lifecycle Processing and Elections
The documents for the remainder of the lifecycle consist of:
•
•
•
•
•
•
A Message Usage Guideline (MUG) document listing the subset of the elements within
the schema implemented by DTCC.
Example: Corporate Action Notification seev.031.002.xx.pdf
A Message Supplementary Usage Guideline (MUG) document listing the subset of the
elements within the extension schema implemented by DTCC.
Example: Corporate Action Notification Extension supl.001.001.xx.pdf
Message Usage Guideline for the business application header
Example: Business Application Header head.001.001.01 Outbound.pdf
Extension implementation schema(s) (the .xsd file(s)).
Delta Comparison document which shows the additions from the prior year’s usage
guideline by comparing the previous year’s standard to the current year. These are only
available at https://www2.swift.com/mystandards/
Unrestricted message schemas. These are only available at
https://www2.swift.com/mystandards/
The following table provides a summary cross reference between the ISO 20022 lifecycle
messages and the activities they provide.
Getting Started With Corporate Actions ISO 20022 Announcements Messaging
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Documentation Guide
Click here for additional information about the MX Identifier.
For an inventory of DTC legacy file names and their corresponding ISO 20022 message
equivalents, click here.
How to Use Supporting Documentation to Map from CCF to ISO 20022
To determine the mapping of a legacy file field to the corresponding ISO message type, field and
tag, use the value from the Legacy Mapping Spreadsheet - CA Data Element Name (2010) and
cross-reference this value with the same data element name in the Corporate Actions Data
Dictionary.
The Corporate Actions Data Dictionary provides the corresponding ISO message type, field and
tag in the Corporate Actions ISO Message Specifications, which represents the ISO message
standards used to communicate with DTCC.
For Example, to find the corresponding ISO 20022 message path, extension, field or XML tag for
the data field ‘Ex-Dividend Date’ in the legacy CCF file DIVANN:
1. Open a Legacy mapping spreadsheet (Ex: Divann)
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2. Go to Legacy mapping tab (Ex: Divann), retrieve the ‘CA Data Element Name (2010)’,
which is Ex-Date.
3. To look-up ISO 20022 Path and Extension, cross reference this same value, Ex-Date, in
the Corporate Actions Data Element Dictionary ‘Data Element Name’ column.
The path value is detailed in the ‘Path’ column, and the value is
CorporateActionDetails/DateDetails/ExDividendDate
The extension value, when applicable, is detailed in the ‘Extension’ columns. In this instance, it
is blank because this data element is not a DTC specific data element.
4. To look-up ISO Field Name, and XML Tag, cross reference this same value, Ex Date, in
the Message Usage Guideline or the Message Definition report.
In the instance below, the ISO Field Name is ExDividendDate, and the XML tag is ExDvddDt
6.14.8
ExDividendDate
XML Tag: ExDvdDate
Presence: [0…1]
Definition: Date/Time as from which trading (including exchange and OTC trading)
occurs on the underlying security without the benefit.
The ExDvddDt block contains the following elements (see datatype “DateFormat
22Choice__1” on page149 for details)
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Getting Started With Corporate Actions ISO 20022 Announcements Messaging
61
Onboarding
Onboarding: How to get started
Contact Information
Participants and interested firms should contact their Relationship Manager to inquire about
adopting ISO 20022, or use the following CA Transformation mailbox:
[email protected]
Network Considerations
As previously noted, messages will be transported using one of the two networks:
•
•
DTCC’s existing SMART channels
o MQ (Real time single threaded messages)
o NDM (File based protocol which runs in 16 batches throughout the day)
o FTP (File based protocol which runs in 16 batches throughout the day)
SWIFT
o InterAct Store and Forward (Real time single threaded messages)
o FileAct (File based protocol which runs in 16 batches throughout the day)
The process of choosing and implementing a network to receive ISO 20022 messages can take
several months and should be one of the client’s first considerations.
SMART
Participants and interested firms considering using the SMART network should contact their
DTCC Relationship Manager to determine if they have a SMART circuit in place currently. If so,
DTCC will perform bandwidth utilization studies on the current lines to determine if an upgrade
to a larger circuit is necessary. There is no cost for transmitting messages via SMART, but
customers do have to pay for the circuit itself. Pricing – which is a direct pass-through from the
telephone company servicing the line – is fixed based on circuit size.
SWIFT
Participants and interested firms considering the SWIFT network should contact their SWIFT
Relationship Manager for provisioning and pricing details.
Ultimately, these communication methods will allow clients to benefit from:
•
Increased availability and timeliness for corporate actions data: Customers will benefit
from the enhanced processing engine that allows for CA messages to be updated and
published throughout the day. Updates will be applied to existing events at intervals for
dissemination.
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Onboarding
•
Subscriptions: Subscription options exist for three main event groups: Distributions,
Reorganizations and Redemptions. Within each event group, participants will be able to
choose to receive messages intra-day or end of day using various message protocols,
depending on the criticality of the event. Additional information can be found on page
35.
ISO 20022 Mapping
While considering a network and a protocol to receive ISO 20022 messages, participants and
interested firms should use this guide and the documentation found at
www.dtcc.com/catransformation to begin the data mapping process. The new data model and
the new ISO 20022 standard will make mapping a necessity and, depending on the level of
knowledge of ISO 20022, can take several months. By reviewing this migration guide and the
detailed mapping documentation, clients can familiarize themselves with the new data model
and the ISO 20022 standard.
Client Support
DTCC’s CA Transformation Team will provide support throughout the mapping and on-boarding
process and clients will be able to work with their respective relationship and product managers
to ensure a smooth adoption to this new standard.
The process of mapping, choosing a network and on-boarding can be done in parallel so as to
reduce the time needed to fully adopt and migrate away from CCF legacy files.
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Appendix A
Appendix A: DTCC Implementation of ISO 20022
This Appendix contains additional detail that may assist Participants and clients in implementing
the ISO 20022 messages. It covers the following aspects:
•
•
•
DTCC Naming Conventions
DTCC Supplementary Data (Extensions)
Notation
DTCC Naming Conventions
DTCC native data element names (located in the ISO message as DTCC Name, and in the
extension component as component name) differ from ISO names as standard element names
that usually are defined broader for more general interpretation. Object and Actor names like
Issuer, Offeror, Event, Option are capitalized. Element names prefixed with DTCC, DTC or
Declared or suffixed with Indicator or Flag have special meanings:
•
•
•
•
Prefixed with ‘DTC’: Specific to DTC (the depository core services) is relevant to the core
DTC system and its Participants. In most cases denotes difference between ‘DTC field’
and ‘Issuer field’ (noted as “declared”) e.g. Declared Cash Rate (cash rate as issuer has
declared) and DTC Cash Rate (DTC cash rate that DTC will distribute, which can be
different from the Issuer declared rate on the same event).
Prefixed with ‘Declared’: Specific naming to denote the difference between ‘DTC’ and
‘Issuer’ fields (noted as “declared”). Please refer to the example in paragraph above.
Suffixed with ‘Flag’: Used when the permissible values for the element are ‘Yes’ or’ No’.
For an example: Withdrawal Privilege Flag (ISO WithdrawalAllowedIndicator element)
can only have ‘Yes’ or ‘No’ value.
Suffixed with ‘Indicator’: Used when permissible values for the element are a restricted
set. For an example: Recycle Cutoff Indicator (defined in extension message as
RecycleCutoffIndicator) can only have three possible values (Anticipated Early Cutoff,
Early and Late).
Supplementary Data (Extensions)
As noted on page 12 in the section on ISO 20022, the DTCC implementation of ISO 20022 will
make use of an ISO 20022 concept of supplementary data, also called ‘extensions’.
Certain DTCC corporate actions elements are not covered by the standard ISO messages. These
elements have been defined as part of the project, and will be implemented using the
supplementary data components. The data fields within the supplementary data have been
modeled using the ISO 20022 principles and will reside in the ISO 20022 data dictionary.
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Appendix A
DTCC extension elements are grouped into blocks of related data, based on the intended
destination of that group of elements.
Physically the extension data is found towards the end of the message with notations to indicate
to which ‘core’ data the extension data is related. The extension block uses a PlaceAndName
element which will be populated with the destination XPath. The extended elements are
defined as optional in the model, meaning they will be used (populated with values) as
necessary.
For example: CorporateActionRateAndAmountDetails extension message component will be
extending three elements:
•
•
•
DeferredInterestRate
InterestShortFall Rate
RealizedLossRate
Message Element Place and Name will be populated with value: CorpActnNtfctn\ CorpActnDtls\
RateAndAmtDtls
Other message elements will be populated with values if they are available but at least one to
be extended value must be available to use as extension message component.
When extending to repeatable ISO components the XPath notation with the array order [n]
must be used, e.g. CorpActnNtfctn\ CorpActnOptnDtls[1]\ SctiesMvmntDtls[2]
The diagram below shows how the extension component is embedded using the
ExtensionEnvelope.
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Appendix A
Notation
The following labels are used to identify the attributes displayed in the specifications:
•
•
•
•
•
•
•
•
•
•
Multiplicity: Standard UML notation signifying correlation of the element to the
instance of a corporate action.
o 0…1 – element occurs zero or one times
o 1…1 – element occurs one time
o 1…* – element occurs one or many times
o 0…* – element occurs zero or many times
XML Tag: Standard ISO XML tag
Type: Standard ISO data type (ISO data types can be complex and consist of another
component)
Length: Length of the field (when applicable).
ISO Name: Standard conventional ISO element name
ISO Definition: Standard ISO Definition of the item.
DTCC Name: DTCC used name for the item.
DTCC Definition: DTCC definition for the item.
DTCC Usage Rule: Rule defining how to use the item when reading the message.
DTCC Implementation Rule: Rule defining how to create and to write the message.
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