PB-07 — Corporate Action
An event initiated by a security’s issuer that changes the security, the holding in it, or both — a dividend, a split, a merger, a rights issue, a tender offer.
Specialises: E-05 Transaction (transaction_type = corporate_action). The core Transaction names the event; PB-07 carries the corporate-action sub-model — the mandatory / voluntary distinction, the key-date calendar, and the election where the holder has a choice. It aligns to the ISO 20022 securities-events (seev) message family — announcement, entitlement, instruction and confirmation messages.
Purpose
A corporate action is the issuer acting on its own securities, and the investor is a passive (or, for voluntary events, a choosing) recipient. The event must be captured, validated against the holding, processed, and its entitlement — cash, new securities, or both — applied. The entity exists because a corporate action is not a trade: it is not executed, it has no counterparty, and its terms and timing are set by the issuer. It needs its own structure — the mandatory / voluntary discriminator that decides whether the holder must act, and the four-date calendar (announcement, ex-date, record date, payment date, plus an election deadline for choice events) that governs entitlement.
Attribute schema
| Column | Type | Definition |
|---|---|---|
corporate_action_id | varchar | Primary key. |
transaction_id | varchar (FK → E-05) | The core Transaction this event belongs to. |
instrument_id | varchar (FK → E-02) | The security the event affects. |
event_type | varchar | cash_dividend / stock_dividend / stock_split / reverse_split / rights_issue / merger / spin_off / tender_offer / exchange_offer / coupon_payment / redemption / name_change. |
mandatory_voluntary | varchar | mandatory (applies automatically) / mandatory_with_choice (applies, but with a default-able option) / voluntary (the holder must elect to participate). |
announcement_date | date | When the issuer or its agent publicly disclosed the event. |
ex_date | date | The date on and after which a buyer does not receive the entitlement. |
record_date | date | The date on which the issuer’s registrar identifies holders of record. |
payment_date | date | The date the entitlement (cash or securities) is delivered. |
election_deadline | date | For a choice or voluntary event — the market deadline by which the holder’s instruction must be submitted; null for a pure-mandatory event. |
terms_ratio | varchar | The event terms — e.g. 2:1 for a split, the dividend rate per share, the subscription ratio for a rights issue. |
resulting_instrument_id | varchar (FK → E-02) | The new or changed instrument an entitlement delivers, where the event produces securities; null for a pure-cash event. |
cash_rate | decimal | The cash entitlement per unit held, where the event pays cash. |
currency | char | The currency of a cash entitlement. |
event_status | varchar | announced / confirmed / election_open / election_closed / processed / cancelled. |
source | varchar | The data source the event was captured and validated from. |
Notes
- For a voluntary or mandatory-with-choice event, the holder’s decision is captured per affected portfolio as an election — the chosen option and the quantity it applies to, submitted before the
election_deadline. The election deadline is a hard operational stop; late elections are rejected. The entity holds the election as an attribute set; an open extension below promotes it to its own sub-entity, because one event can carry one election per portfolio. - Entitlement is calculated against the holding (E-04) as at the record date, not the processing date — the date discipline is the core of the sub-model.
- A corporate action’s cash or securities outcome is itself a Transaction (E-05) and Cash Flow Event (E-06) — a dividend pays cash, a split changes quantity, a merger replaces one instrument with another. PB-07 is the event; the position and cash consequences are recorded through the core entities.
- A coupon payment on a debt instrument is a corporate action of
event_type = coupon_payment; its forward schedule is materialised by PB-08 Income Schedule, and PB-07 records the actual event when it occurs.
Out of scope
- The generic transaction record a corporate action specialises — that is E-05 Transaction of
transaction_type = corporate_action; PB-07 carries the corporate-action sub-model. - The position and cash consequences of the event — those are recorded through core E-04 Holding / Position and E-06 Cash Flow Event; PB-07 is the event, not its outcome.
- The forward calendar of expected coupons and dividends — that is PB-08 Income Schedule; PB-07 records an income event when it occurs, PB-08 is the projection before it occurs.
- The holder’s election promoted to its own sub-entity — named as an open extension; the entity holds the election as an attribute set.
Owned and consumed by
- Owned by: SD-12.6 Corporate Actions Processing.
- Populated via: SD-13.4 Market & Reference Data Management (corporate-action data feeds).
- Consumed by: SD-12.7 Income & Distribution Processing, SD-12.1 Investment Book of Record (IBOR), SD-12.2 Accounting Book of Record (ABOR), SD-12.12 Proxy Voting & Stewardship Operations (meeting events), SD-05.2 Portfolio Management & Monitoring, SD-13.1 Instrument & Security Master (instrument-changing events).
Open extensions
- The election promoted to its own sub-entity — one election per (event, portfolio), with the chosen option and quantity.
- The entitlement-calculation sub-model — the rule from event terms and record-date holding to the resulting cash / securities movement.
- The handling of complex multi-leg events — mergers with cash-and-stock consideration, spin-offs with cost-basis apportionment.