USER GUIDE ISO 20022 MESSAGING FOR DISTRIBUTIONS ENTITLEMENTS AND ALLOCATIONS VERSION 2.1 MARCH 08, 2021 © 2021 DTCC. All rights reserved. DTCC, DTCC (Stylized), ADVANCING FINANCIAL MARKETS. TOGETHER, and the Interlocker graphic are registered and unregistered trademarks of The Depository Trust & Clearing Corporation. The services described herein are provided under the “DTCC” brand name by certain affiliates of The Depository Trust & Clearing Corporation (“DTCC”). DTCC itself does not provide such services. Each of these affiliates is a separate legal entity, subject to the laws and regulations of the particular country or countries in which such entity operates. Please see http://www.dtcc.com for more information on DTCC, its affiliates and the services they offer. This guide is meant as an educational tool to assist in your understanding of ISO 20022 messaging as it relates to corporate action processing at DTCC. It should not be used as a basis for systems applications coding. For coding purposes, please refer to specific schemas and message implementation guides that can be found at http://www.dtcc.com/settlement-and-asset-services/corporate-actions-processing/iso-20022-messaging-specifications. Doc Info: March 8, 2021 Publication Code: CA220 Service: Corporate Actions Title: User Guide: ISO 20022 Messaging for Distributions Entitlements and Allocations TABLE OF CONTENTS An Introduction to ISO 20022 Messaging ........................................................................................... 7 What is ISO 20022 Messaging? ........................................................................................................ 7 Benefits of Using ISO 20022 Messaging for Corporate Actions .............................................................. 7 Benefits of Using ISO 20022 Schemas for Entitlements and Allocations Processing ................................ 7 How Can I Learn More?................................................................................................................... 8 Co rpo rate Actio ns Mess ag es in the Entitlements and Allo c atio ns Wo rkflo w ............................................. 9 How to Read an MX Identifier ........................................................................................................... 9 Basic Message Flow of the Distribution Lifecycle ............................................................................... 10 Entitlements and Allocations Messaging ..........................................................................................12 Entitlements/Allocations Event Types Currently Supported by ISO 20022 Messaging for Distributions ....... 12 Message Extensions and Stock Loan, REPO, and Fail Tracking .......................................................... 16 Mess ag es and Zero Amounts ......................................................................................................... 16 Entitlement and Allocation Message Flows ....................................................................................... 16 Basic Flow.................................................................................................................................. 16 Exc eptio n Flo w ........................................................................................................................... 17 Ex amp le of a Cas h D iv id end –Basic Message Flow ........................................................................... 21 Ex amp le of a Same-D ay Rev ersal.................................................................................................. 22 Ex amp le of a Post-Pay ab le Alloc ation Ad jus tment ............................................................................ 23 Late Announcements ................................................................................................................... 24 Scenario 1: All Details Known ...................................................................................................... 24 Sc enario 2: Mos t D etails Kno wn ................................................................................................... 25 Scenario 3: Few D etails Kno wn.................................................................................................... 25 Sc enario 4: No D etails Kno wn...................................................................................................... 26 Mess ag e Sub sc riptio ns and Timing ................................................................................................. 26 Subs c riptio n Optio ns .................................................................................................................... 26 Week ly Mess ag ing Times ............................................................................................................. 28 Holiday Processing Schedule ........................................................................................................ 29 CANO-E Messages......................................................................................................................... 30 What is a CANO-E Mes sag e?......................................................................................................... 30 When Are CANO-E Mess ag es Generated ? ...................................................................................... 31 Intraday Position Capture ............................................................................................................. 32 Mess ag e Timing.......................................................................................................................... 32 Week ly Mess ag ing Times ............................................................................................................. 32 Holiday Processing Schedule ........................................................................................................ 33 Information Contained on the CANO-E Mes s age ............................................................................... 33 Examples and Scenarios for CANO-E Mess ag es............................................................................... 36 CANO-E for Position Adjustments .................................................................................................. 36 CANO-E for Market Record Date or New York Record Date............................................................... 38 Announcement Deleted; CA ID Remains in CA Web ......................................................................... 39 CAPA Messages ............................................................................................................................ 40 What is a CAPA Message? ............................................................................................................ 40 CAPA Mess ag e Creatio n and Timing ............................................................................................... 42 What are the CAPA Subscription Options? ...................................................................................... 42 When are CAPA NEWM/REPL Messages Sent? .............................................................................. 42 CAPA and CAPC Messages ......................................................................................................... 44 Messaging Notes ........................................................................................................................ 44 Intraday Position Capture ............................................................................................................. 44 CAPA Messages and Reversals .................................................................................................... 45 Mess ag es and Zero Amo unts ........................................................................................................ 45 Late Announcements ................................................................................................................... 45 Week ly Mess ag ing Times ............................................................................................................. 45 Holiday Processing Schedule ........................................................................................................ 45 Information Contained on the CAPA Message................................................................................... 46 CAPA Mess ag e D ata .................................................................................................................... 51 CAPC Messages ............................................................................................................................ 53 What is a CAPC Message? ............................................................................................................ 53 CAPA and CAPC Mess ag es ......................................................................................................... 54 When Are CAPC Messages Generated? .......................................................................................... 54 Mess ag ing Note .......................................................................................................................... 54 Week ly Mess ag ing Times ............................................................................................................. 54 Holiday Processing Schedule ........................................................................................................ 55 Information