Communicating corporate action

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Imported from previous forum

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Hi All!

Does anybody have experience in communicating corporate action information via FIX ?
In particular, I’m wondering is there a possibility to populate ex-dividend status of the security as a result of corporate action with Security Status message? And how to deactivate this status when it occures?

Thank you in advance,

Regards,
Olga

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You can use the CorporateAction(292) field with A=Ex-Dividend to flag market data information, including security status. However, it is not a status but an event. You could send security status with tag 292 on the day after the corporate action and without on all other days. You can be more specific on trade prices with TradePriceCondition(1839) where you can add ex or cum (and more).
Regards,
Hanno.

Hi All!

Does anybody have experience in communicating corporate action information via FIX ?
In particular, I’m wondering is there a possibility to populate ex-dividend status of the security as a result of corporate action with Security Status message? And how to deactivate this status when it occures?

Thank you in advance,

Regards,
Olga

4

Thank you for your response, Hanno.
The question is that we need to inform clients about such events. And also we need to have possibility to revoke this info within the same trading session in case when it appears that the “ex-dividend” status was incorrect and now it’s necessary to recall the “ex-dividend” state for the previous announced security.
What messages/fields better use for this?

Thanks,
Olga

You can use the CorporateAction(292) field with A=Ex-Dividend to flag market data information, including security status. However, it is not a status but an event. You could send security status with tag 292 on the day after the corporate action and without on all other days. You can be more specific on trade prices with TradePriceCondition(1839) where you can add ex or cum (and more).
Regards,
Hanno.

Hi All!

Does anybody have experience in communicating corporate action information via FIX ?
In particular, I’m wondering is there a possibility to populate ex-dividend status of the security as a result of corporate action with Security Status message? And how to deactivate this status when it occures?

Thank you in advance,

Regards,
Olga

5

FIX currently does not provide a means to revoke an event previously communicated together with a SecurityStatus message. I would thus define both the corporate action as well as its recall as an event. You can use CorporateAction(292) with A=Ex-Dividend for the details and define your own values for SecurityTradingEvent(1174) above 1000 for the event as such, e.g.
1000=Corporate Action
1001=Revoke Corporate Action
If you send prices with the same SecurityStatus message then I guess you need to adjust them again when revoking the corporate action. What is the use case for revoking? Is it only technical? It would be a major mistake from a business point of view to conduct a corporate action and then decide to withdraw it again. Or are these announcements of planned corporate actions in the future that may have to be cancelled again? That would probably better be covered by the News message where you can reference previous messages with NewsRefType(1477) set to 100=Recall and NewsCategory(1473) = 0 (Company News) and Headline(148) defining the corporate action. You cannot associate current instrument prices with the News message. The choice between SecurityStatus and News depends on your use cases and intended work flows.
Regards,
Hanno.

Thank you for your response, Hanno.
The question is that we need to inform clients about such events. And also we need to have possibility to revoke this info within the same trading session in case when it appears that the “ex-dividend” status was incorrect and now it’s necessary to recall the “ex-dividend” state for the previous announced security.
What messages/fields better use for this?

Thanks,
Olga

You can use the CorporateAction(292) field with A=Ex-Dividend to flag market data information, including security status. However, it is not a status but an event. You could send security status with tag 292 on the day after the corporate action and without on all other days. You can be more specific on trade prices with TradePriceCondition(1839) where you can add ex or cum (and more).
Regards,
Hanno.

Hi All!

Does anybody have experience in communicating corporate action information via FIX ?
In particular, I’m wondering is there a possibility to populate ex-dividend status of the security as a result of corporate action with Security Status message? And how to deactivate this status when it occures?

Thank you in advance,

Regards,
Olga