CNS Corporate Action User Guide and FAQ

Here you'll find the SMART/Track For CNS Corporate Action Notification Service User Guide and answers to Frequently Asked Questions about CNS Corporate Actions.

SMART/Track for Corporate Action Notification Service User Guide

Describes the SMART/Track for CNS Corporate Actions system, including how to view corporate actions, manage instructions and search for voluntary corporate actions. Published on 16-September-2015.




1. Where can I access SMART/Track for CNS Corporate Actions?

SMART/Track for CNS Corporate Actions may be accessed via DTCC's Web Portal, formerly known as Web Direct. The URL is https://portal.dtcc.com.

2. Is SMART/Track for CNS Corporate Actions different than the existing SMART/Track for Corporate Action Liability Notification (CALN) Service?

Although SMART/Track for CNS Corporate Actions is part of the SMART/Track for Corporate Action Liability Notification (CALN) Service, it has its own product ID that must be requested in order to gain access to it. The product ID is "CNR" - which stands for "SMART/Track for CNS Corporate Actions."

3. Whom should I contact to request access to SMART/Track for CNS Corporate Actions (CNR)?

For access assistance, please contact your internal access coordinator to ensure you have the CNR product. See FAQ #1 to learn where to access CNR.

4. As a Member of CNS, do I need to get access to SMART/Track for CNS Corporate Actions (CNR)?

Yes. Every member of CNS must have at least one staff person from their firm registered for SMART/Track for CNS Corporate Actions. Once implemented, all potential and final liability as well as preliminary and final protect information on a voluntary offer will only be reported to members by NSCC via SMART/Track for CNS Corporate Actions (CNR).

5. I am experiencing issues logging on to SMART/Track for CNS Corporate Actions, whom should I contact?

Contact your internal access coordinator for SMART/Track for CNS Corporate Actions. Access coordinators may call 888-382-2721 and select option 5, then option 5. Alternatively, contact your relationship manager.

6. I am able to access the system and a voluntary offer exists, but am unable to enter my instructions in SMART/Track for CNS Corporate Actions. Whom should I contact?

Contact your internal access coordinator to ensure you possess the proper entitlements for Smart/Track for CNS Corporate Actions. Access coordinators may call 888-382-2721 and select option 5, then option 5. Alternatively, contact your relationship manager.

7. Where can I find more information about a specific voluntary offer?

Information (including terms) about voluntary offers will be available via SMART/Track for CNS Corporate Actions.

8. I have a question about the terms of a voluntary offer. Whom should I contact?

NSCC members may call CNS Cashiering at 888-382-2721 option 2, then option 2.

9. What CNS reorganization sub-account should I use to enter instructions on a voluntary offer?

In SMART/Track for CNS Corporate Actions, the CNS reorganization sub-account will be pre-populated; the options available to you are based on the terms of the offer. Generally speaking, the G sub-account will be available for primary offer entitlements while the H sub-account will be available for subsequent offers and/or secondary offer entitlements. Select a sub-account based on your preference.

10. What is the deadline for entering my instructions into SMART/Track for CNS Corporate Actions for any given voluntary offer?

The standard time to submit instructions on a voluntary offer is from 3:10 p.m. to 6:00 p.m. eastern time on the day prior to the CNS end date for that offer.

11. What is my deadline for reducing my instructions on a voluntary offer?

The deadline for reducing instructions on a voluntary offer is 12:00 p.m. eastern time on the CNS end date for that offer.

12. Where can I verify if I am potentially being held liable on a voluntary offer?

In SMART/Track for CNS Corporate Actions you will be able to view your potential liability via a selection from the main menu.

13. Where can I verify if I am finally being held liable on a voluntary offer?

In SMART/Track for CNS Corporate Actions you will be able to view your final liability via a selection from the main menu.

14. Can CNS tell me before recycle cutoff if I will be allocated my shares for my long position on the CNS end date for a voluntary offer?

No. CNS does not know when or if members who have short position(s) will cover their CNS obligations before recycle cutoff.

15. What happens to my elections if a voluntary offer is extended?

When a voluntary offer is extended, all elections previously submitted on a long position(s) will become null and void and the new expiration date for that offer will be reflected on SMART/Track for CNS Corporate Actions. Members will be required to re-enter their instructions.

16. Is it possible to enter instructions on a voluntary offer for a share quantity greater than my current CNS position?

The quantity instructed cannot exceed the total number of shares held in each individual sub-account, inclusive of new trades settling on the next business date. Ultimately, CNS will only accept your liability based on your actual long position held at the close of business on the CNS end date.

17. How can I protect shares I have moved into sub-accounts other than my free account (Sub-Account A) on a voluntary offer?

You may submit protect instructions for any sub-account provided that you have a long position (or will have a long position) in that sub-account on the day prior to the CNS end date.

18. Can I move shares between my free account (Sub-Account A) to my fully paid-for account (Sub-Account E) or vice versa on the CNS end date for a security undergoing a voluntary offer?

No. Any instructions to move shares for a security between CNS sub-accounts (e.g., from Sub-Account A to Sub-Account E) on the CNS end date of a voluntary offer will be rejected by CNS.

20. Where can I view my payment on a voluntary offer?

Payment may be found on your Miscellaneous Report/MRO and SMART/Track for CNS Corporate Actions.

21. When CNS cannot process a Voluntary Corporate Action, when will I receive my balance order and where can I locate it?

Generally CNS will set up balance orders three business days prior to the CNS end date of that offer. Balance orders are found on the CNS Night Miscellaneous Activity Report/MRO.

22. Why am I receiving a CNS receive and deliver order while a security is subject to a voluntary offer?

Although SMART/Track for CNS Corporate Actions now offers enhanced processing of voluntary corporate actions, it may be necessary for CNS to issue receive and deliver orders for members to resolve broker to broker.

23. I want to pass a liability on a security that is not eligible for CNS. How do I do this?

Receive and deliver orders must be resolved broker to broker. Any receive and deliver orders generated by CNS are reported on your CNS Night Miscellaneous Report/MRO. The passing of liability notifications for non-CNS offers will continue to be processed on the SMART/Track for Corporate Action Liability Notification (CALN) Service as they are today.

 

 

24. How will I submit optional dividend instructions on a CNS long position? Will I still use WINS?

Optional Dividend instructions will now be submitted on a link from the main menu of the SMART/Track for CNS Corporate Actions system. Instructions should no longer be submitted via WINS as they will not be accepted or processed.

25. When can I expect to receive payment on my optional dividend?

Payment in CNS will be allocated concurrently with DTC payment of the optional dividend.

26. Where can I view my optional dividend payment?

You may continue to view your payments using the CNS Dividend Activity Report/MRO and your CNS Miscellaneous Report/MRO.