CDE 10 - Class Merger Process
Table of Contents
Class Merger Process Flow
Class Merger Process
| Step | Description | Party | Recipient | Message Reference |
|---|---|---|---|---|
| 1 | On announcement of a corporate Action Event by an Issuer, this event is recorded in CSP. | CSP | - | - |
| 2 | As part of a Corporate Action CSP may record a Class Merger. The Class Merger may be standalone or as part of a Corporate Action lifecycle. | CSP | - | - |
| 3 | The CSP during End of Day processing will calculate and process Diary Adjustment transactions. | CSP | - | - |
| 4 | The CSP updates the Security Records. | CSP | - | - |
| 5 | The CSP notifies the Delivering and Receiving Participant that the transactions have been updated to New Security. | CSP | Settlement Participant | Adjusted Settlement Instruction (sett_139) |
| 6 | The CSP updates the aggregate Holdings in the old and New Security Ids. | CSP | - | - |
| 7 | The CSP sends a Holding Adjustment Notification to the Controlling Participant advising that the Class Merger has been effected as a result of Corporate Action processing. This message will only be sent to an Offeror where they control an Account (HIN). | CSP | Controlling Participant/ Offeror | Holding Adjustment Notification (sett_226) |
| 8 | The CSP sends an Applied Code Change to the Issuer (Registry) advising that the Class Merger has been effected as a result of Corporate Action processing. | CSP | Issuer (Registry) | Applied Code Change (admn_852) |
| 9 | The CSP will create a sub-position in the Resultant Security Code equal to the sub-position in the Underlying Security Code and will then remove the sub-position in the Underlying Security Code, if a sub-position in the Resultant Security Code does not exist. If a sub-position in the Resultant Security Code exists, each sub-position balance(s) in the Resultant Security Code is increased by the balance of the sub-position of the Underlying Security Code and then the sub-position balance(s) in the Underlying Security Code is removed. | CSP | - | - |
| Bid Election Sub-position | ||||
| 10 | The CSP determines whether the Class Merger affected a Bid Election Sub-position. If a Bid Election sub-position is affected, refer to Step 11; "Bid Election Sub-position". If a Bid Election sub-position is not affected, refer to Step 15; "Collateral Sub-position". | CSP | - | - |
| 11 | The CSP sends a Securities Balance Report to the Controlling Participant, advising that a Bid Election sub-position has increased. | CSP | Controlling Participant | Securities Balance Report (hold_228) |
| 12 | The CSP sends a Securities Balance Report to the Controlling Participant, advising that a Bid Election sub-position has decreased. | CSP | Controlling Participant | Securities Balance Report (hold_228) |
| 13 | The CSP sends a Securities Balance Report to the Offeror, advising that a Bid Election sub-position has increased. | CSP | Offeror | Securities Balance Report (hold_228) |
| 14 | The CSP sends a Securities Balance Report to the Offeror, advising that a Bid Election sub-position has decreased. | CSP | Offeror | Securities Balance Report (hold_228) |
Collateral Sub-position | ||||
| 15 | The CSP determines whether the Class Merger affected a Collateral sub-position. If a Collateral sub-position is affected, refer to Step 16; "Collateral Sub-position". If a Collateral sub-position is not affected, refer to Step 22; "Holding Administration Lock Balance". | CSP | - | - |
| 16 | The CSP sends a Securities Balance Report to the Controlling Participant, advising that a Collateral sub-position has increased. | CSP | Controlling Participant | Securities Balance Report (hold_228) |
| 17 | The CSP sends a Securities Balance Report to the Controlling Participant, advising that a Collateral sub-position has decreased. | CSP | Controlling Participant | Securities Balance Report (hold_228) |
| 18 | The CSP sends a Securities Balance Report to ASX Clear, advising that a Collateral sub-position has increased. | CSP | ASX Clear | Securities Balance Report (hold_228) |
| 19 | The CSP sends a Securities Balance Report to ASX Clear, advising that a Collateral sub-position has decreased. | CSP | ASX Clear | Securities Balance Report (hold_228) |
| 20 | Where the Controlling Participant is not the ETO Clearing Participant and the Collateral sub-position type is Option Cover (ETOC), the CSP also sends a Securities Balance Report to the ETO Clearing Participant, advising that a Collateral sub-position has increased. | CSP | ETO Clearing Participant | Securities Balance Report (hold_228) |
| 21 | Where the Controlling Participant is not the ETO Clearing Participant and the Collateral sub-position type is Option Cover (ETOC), the CSP also sends a Securities Balance Report to the ETO Clearing Participant, advising that a Collateral sub-position has decreased. | CSP | ETO Clearing Participant | Securities Balance Report (hold_228) |
| Holding Administration Lock Balance | ||||
| 22 | The CSP determines whether a Holding Administration Lock balance is affected by a Class Merger. If a Holding Administration Lock balance is affected, refer to Step 23; "Holding Administration Lock Balance". If a Holding Administration Lock balance is not affected, no further action is performed by the CSP in the Holding Adjustment Process. | CSP | - | - |
| 23 | The CSP sends a Securities Balance Report to the Controlling Participant, advising that a Holding Administration Lock balance has increased. | CSP | Controlling Participant | Securities Balance Report (hold_228) |
| 24 | The CSP sends a Securities Balance Report to the Controlling Participant, advising that a Holding Administration Lock balance has decreased. | CSP | Controlling Participant | Securities Balance Report (hold_228) |
| 25 | The CSP sends a Securities Balance Report to the Issuer (Registry), advising that a Holding Administration Lock balance has increased. | CSP | Issuer (Registry) | Securities Balance Report (hold_228) |
| 26 | The CSP sends a Securities Balance Report to the Issuer (Registry), advising that a Holding Administration Lock balance has decreased. | CSP | Issuer (Registry) | Securities Balance Report (hold_228) |
Business Values and Rules
Adjusted Settlement Instruction
The CSP sends an Adjusted Settlement Instruction to the Delivering and Receiving Participant, notifying that a scheduled settlement instruction has been adjusted.
Where the Settlement Instruction is a Unilateral Settlement Instruction, the Adjusted Settlement Instruction is only sent to the Delivering Participant.
ASX Element Name | ISO 20022 Element | Guidelines |
|---|---|---|
| Target Transaction Id | Transaction Identification Details / Account Owner Transaction Identification | The identifier of the transaction which is the target of the Class Merger. For Unilateral or Bilateral Settlement Instructions, this will be the Transaction Id that was sent in the Settlement Instruction Request (sett_105). For Net Gross Market Trades (GMTD) and Novated Rescheduled Instruction (NRIN) the Account Owner Transaction Identification field must be populated with 'NONREF'. |
| Target Transaction Id (CSP) | Transaction Identification Details / Account Servicer Transaction Identification | The identifier of the transaction which is the target of the Class Merger. For Unilateral and Bilateral Settlement Instructions, the Account Servicer Transaction Identification field is not be used. For Gross Market Trades (GMTD), this will be the Transaction Id that was sent in the Trade Confirmation Notification (sett_101). For a Novated Rescheduled Instruction (NRIN) this will be the Transaction Id that was sent in the Settlement Transaction Generation Notification (sett_130). |
Obligation Id | Transaction Identification Details / Market Infrastructure Transaction Identification | The Obligation Id of the Settlement Obligation that was generated by the CSP. |
| Securities Movement Type | Transaction Identification Details / Securities Movement Type | Indicates the Securities Movement Type of the Settlement Instruction. The Securities Movement Type is Delivery (DELI), where the Settlement Participant is the Delivering Participant. The Securities Movement Type is Receive (RECE), where the Settlement Participant is the Receiving Participant. |
| Payment | Transaction Identification Details / Payment | Indicates if the transaction will be processed Against Payment Settlement (APMT) or as a separate payment (FREE). For a Novated Rescheduled Instruction (NRIN) the value is Against Payment Settlement (APMT). |
| Corporate Action Event Id | Transaction Identification Details / Corporate Action Event Identification | The identifier of the Corporate Action being triggered by the Diary Adjustment. |
| New Settlement Date | Trade Details / Settlement Date / Date / Date | Identifies the settlement cycle in which settlement instructions are settled. |
| Previous Settlement Date | Trade Details / Settlement Instruction Processing Additional Details | Identifies the settlement date of a settlement instruction before it was altered. |
| Security Code | Financial Instrument Identification | Identifies the security that is the subject of a message sent between a user and CSP. In this case, both ISIN and ASX code values will be provided. Further details of Security Code and ISIN are detailed /wiki/spaces/CSP/pages/23233983. |
| Unit Quantity | Quantity And Account Details / Settlement Quantity / Quantity / Unit | The number of units of a security that a particular transaction moves. |
| Account Identifier (HIN) | Quantity and Account Details / Safekeeping Account | Indicates either the Delivering or Receiving Account of the Settlement Instruction. If the instruction type is Unilateral Settlement Instruction (USSI) this Account Identifier will always be the Delivering Account (HIN). |
| Transaction Basis | Settlement Parameters / Securities Transaction Type | Identifies the type of securities transaction. In this case, one of the valid values outlined in the /wiki/spaces/CSP/pages/23233122 (9 - TransactionBasisCode) will be present. |
| Settlement Transaction Condition | Settlement Parameters / Settlement Transaction Condition | Defines the type of the Transaction. One of the following code values must be used:
|
| New Settlement Amount | Settlement Amount / Amount | The new settlement after a margin settlement amount change has been effected in CSP. |
| Adjustment Value | Other Amounts / Other / Amount | The amount that has been adjusted. |
| Adjustment Reason | Generated Reason / Code / Proprietary / Identification | The cause of an adjustment to a settlement instruction. In this case, TRAN will be present. |
| Adjustment Type | Generated Reason / Additional Reason Information | Indicates the type of corporate action. In this case, the value will be Code Change Diary Adjustment (CCDA). |
| Previous Security Code | Adjustment Attributes / Previous Security Code | Identifies the security code of the transaction before adjustment. In this case, both ISIN and ASX code values will be provided. |
| Previous Unit Quantity | Adjustment Attributes / Previous Unit Quantity / Unit | The number of units of the transaction before it was adjusted. |
Holding Adjustment Notification
The CSP sends a Holding Adjustment Notification to the Controlling Participant, advising the Holding Adjustment has been completed.
ASX Element Name | ISO 20022 Element | Guidelines |
|---|---|---|
| Transaction Id | Account Servicer Document Identification | The unique identifier of a transaction within the CSP. Further details of Transaction Identifications are detailed here. |
Corporate Action Event Id | Corporate Action Event Identification | Identifies the unique numeric identifier of a Corporate Action that the Holding Adjustment pertains to. In this case, this must be populated with value 'NONREF'. |
| Reason | Event Type / Proprietary / Identification | Identifies the reason for the Holding Adjustment. In this case, this must be populated with the value Class Change (CLSC). |
| Parent Security Code | Financial Instrument Identification | Identifies the Parent Security that is the subject of a message sent between a user and ASX. |
| Account Identifier | Safekeeping Account | Uniquely identifies an Account (HIN) within the CSP. |
| Participating Balance | Balance / Confirmed Balance / Balance / Quantity Choice / Quantity / Unit | Identifies the balance to which the Corporate Action applies. |
| Corporate Action Option Number | Option Number / Code | Identifies the Option Number of the Corporate Action Id. In this case, this must be populated with fixed value Unsolicited (UNSO). |
| Corporate Action Option Type | Option Type / Code | Populated with the fixed value Security (SECU). |
| Override Basis of Movement | Option Features / Proprietary / Identification | Allows optional overriding of the default Basis of Movement for the transaction where there are current Corporate Actions where the Holding Adjustment is for one security only. There may be up to 3 Override Basis of Movement present on the Holding Adjustment Notification, and the value must exist in the /wiki/spaces/CSP/pages/23233230 table. For further details refer to the Proprietary Code List (BasisOfMovementCode). |
| Registry Reference | Additional Information / Additional Text | The identifier allocated by a registry to a transaction which is submitted by a registry for identification purposes between Registry, CSP and the Controlling Participant of the account. |
| Security Code | Additional Details / Financial Instrument Identification | Identifies the Security that is being transferred. Either a Security Code, an ISIN or both elements may be populated. Where both elements are present, the ISIN and Security Code must refer to the same security. Further details of Security Code and ISIN are detailed /wiki/spaces/CSP/pages/23233983. |
| New Holding Balance | New Holding Balance | Indicates the holding balance of the Resultant Security Code after the Class Merger. |
| Security Movement 1 | ||
| Security Code | Securities Movement Details / Financial Instrument Identification | Identifies the Underlying Security Code. Either a Security Code, an ISIN or both elements may be populated. Where both elements are present, the ISIN and Security Code must refer to the same security. Further details of Security Code and ISIN are detailed /wiki/spaces/CSP/pages/23233983. |
| Credit/Debit Indicator | Securities Movement Details / Credit/Debit Indicator | Identifies whether the unit quantity is an increase or decrease of the holding balance of a security on the Account (HIN). In this case, this must be populated with Debit (DBIT) as the holding balance is decreasing the holding balance, |
| Unit Quantity | Posting Quantity / Quantity / Unit | Identifies the change in balance of the Account (HIN). The Unit Quantity must be greater than zero. |
| Posting Date | Posting Date / Date | Identifies the Current Business Date. |
| Security Movement 2 | ||
| Security Code | Securities Movement Details / Financial Instrument Identification | Identifies the Resultant Security Code. Either a Security Code, an ISIN or both elements may be populated. Where both elements are present, the ISIN and Security Code must refer to the same security. Further details of Security Code and ISIN are detailed /wiki/spaces/CSP/pages/23233983. |
| Credit/Debit Indicator | Securities Movement Details / Credit/Debit Indicator | Identifies whether the unit quantity is an increase or decrease of the holding balance of a security on the Account (HIN). In this case, this must be populated with Credit (CRDT) as the holding balance is increasing the holding balance, Credit. |
| Unit Quantity | Posting Quantity / Quantity / Unit | Identifies the change in balance of the Account (HIN). The Unit Quantity must be greater than zero. |
| Posting Date | Posting Date / Date | Identifies the Current Business Date. |
Applied Code Change
The CSP sends an Applied Code Change is sent to the Issuer (Registry) notifying the security code change has been effected as a result of a corporate action being processed.
ASX Element Name | ISO 20022 Element | Guidelines |
|---|---|---|
| Transaction Id | Identification | The identifier of the transaction within CSP. |
| Revised Security Code | Financial Instrument Attributes / Financial Instrument Identification | Identifies the Security Code of a Settlement Instruction or Holding which has been revised due to a code change corporate action. Either a Security Code, an ISIN or both elements may be populated. Where both elements are present, the ISIN and Security Code must refer to the same security. Further details of Security Code and ISIN are detailed /wiki/spaces/CSP/pages/23233983. |
| Previous Security Code | Financial Instrument Identification | Identifies the previous Security Code of a Settlement Instruction or Holding, prior the code change corporate action. Either a Security Code, an ISIN or both elements may be populated. Where both elements are present, the ISIN and Security Code must refer to the same security. Further details of Security Code and ISIN are detailed /wiki/spaces/CSP/pages/23233983. |
| Update Type | Update Type | Indicates the reason for an Applied Code Change. In this case, the value will be Class Merger (CMGR). |
Securities Balance Report
The CSP sends a Securities Balance Report:
- to the Controlling Participant notifying there has been a change in a Underlying Security Code sub-position;
- where there is a change in a Bid Election sub-position, to the Offeror advising that a Bid Election sub-position has increased or decreased;
- where there is a change in a Collateral sub-position, to ASX Clear and the ETO Clearing Participant (where the Controlling Participant is not the ETO Clearing Participant and the Collateral sub-position type is Option Cover (ETOC)) advising that a Collateral sub-position has increased or decreased; and/or
- where there is a change in a Holding Administration Lock balance, to the Issuer (Registry) advising that a Holding Administration Lock balance has increased or decreased.
| ASX Element Name | ISO 20022 Element | Guidelines |
|---|---|---|
| Transaction Id | Statement General Details / Query Reference | The unique identifier of a transaction within the CSP. Further details of Transaction Identifications are detailed here. |
| Reason | Statement General Details / Update Type / Proprietary / Identification | Indicates the reason for the Class Merger. In this case, this must be populated with fixed value Class Change (CLSC). |
| Statement Basis | Statement General Details / Statement Basis | Indicates the type of balance on which the statement is prepared. In this case, the Fixed Value Settled (SETT) will be present. |
| Account Identifier | Safekeeping Account / Identification | Uniquely identifies an Account (HIN) within the CSP. |
| Security Code | Balance For Account / Financial Instrument Identification | Indicates the security that is the target of the Class Merger. |
| Subposition Type | Balance For Account / Balance Breakdown / Sub Balance Type / Proprietary / Identification | Indicates the Subposition Type. Where the Securities Balance Report is sent following a change in a Holding Administration Lock balance, Holding Administration Lock balance (HADM) will be present. Where the Securities Balance Report is sent following a change in a Collateral sub-position, either Option Cover (ETOC) or Cash Margin Cover (CMMC) will be present, depending on which type of collateral sub-position was affected. Where the Securities Balance Report is sent following a change in a Bid Election sub-position, Bid Election Balance (BIDA) will be present. |
| Short Long Indicator | Balance For Account / Balance Breakdown / Quantity / Short Long Indicator | Indicates the Participating Balance is positive. In this case, Long (LONG) will be present. |
| New Subposition Balance | Aggregate Balance / Quantity / Quantity / Quantity /Unit | Indicates resulting balance of a subposition associated with a holding following the application of a transaction that adjusts the balance. Where the Security Balance Report is sent to the decreasing security, it is zero. Where the Security Balance Report is sent to the increasing security, it is the total balance. |
| Unit Quantity | Balance For Account / hold 228 Additional Details / Unit Quantity | Indicates the change in sub-position balance. Where the Holding Adjustment results in a sub-position balance that is greater than the sub-position balance prior to the Holding Adjustment, the Unit Quantity will be the new sub-position balance less the previous sub-position balance. Where the Holding Adjustment results in a sub-position balance that is less than the sub-position balance prior to the Holding Adjustment, the Unit Quantity will be the previous sub-position balance less the new sub-position balance. |
| Credit/Debit Indicator | Balance For Account / hold 228 Additional Details / Credit Debit Indicator | Indicates whether the unit quantity is an increase or decrease of the holding balance of a security on the Account (HIN). Where the Holding Adjustment increased the holding balance, Credit (CRDT) will be populated. Where the Holding Adjustment decreased the holding balance, Debit (DBIT) will be populated. |
| Where the Securities Balance Report is sent as a result of a change in a Collateral sub-position, the below attributes will also be present | ||
| Collateral Manager | Balance For Account / hold 228 Additional Details / Collateral Manager | Indicates the identifier of ASX Clear for the associated Collateral sub-position. |
| Clearing Member | Balance For Account / hold 228 Additional Details / Clearing Member | Indicates the ETO Clearing Participant that is associated with the Collateral sub-position affected by the Holding Adjustment. |
| Where the Securities Balance Report is sent as a result of a change in a Bid Election sub-position, the below attributes will also be present | ||
| Corporate Action Event Id | Balance For Account / hold 228 Additional Details / Corporate Action Event Identification | Indicates the unique numeric identifier of a Corporate Action that the Holding Adjustment pertains to. |
| Option Number | Balance For Account / hold 228 Additional Details / Option Number / Number | Indicates the Option Number of the Corporate Action Id. |
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