Create Exchange Offers Corporate Action Announcements

In the Create Exchange Offers panel, you can add a mandatory or voluntary corporate action announcement for an exchange offer or a conversion. You can use an Exchange corporate action to exchange a fixed income security for another one. You also use it when a convertible bond is changed from a debt to an equity. In order to process the accounting transactions for converting a convertible bond into its underlying security, you must create and process an exchange offer corporate action.

To create an Exchange Offers corporate action announcement manually:

1. In Reference Data Center, in the left navigation pane, click Reference Desk > Corporate Actions > Announcements > Create Exchange Offers.
   You see the Create Exchange Offers panel.
2. Complete the options on the Create Exchange Offers panel.
3. Click Submit.
   The system adds the corporate action to the Corporate Action table. It has a transaction type of TAXMERGP, NONTAXMERGP, or NONTAXMERGR, along with a Reason of EXCHANGE OFFER or CONVERSION. You can change a corporate action announcement if it does not have a Released status.
4. If you added a voluntary corporate action announcement, you can identify entities that elected to participate in the corporate action. 
5. If you added a mandatory corporate action announcement, you can set up a mandatory corporate action exclusion to prevent the system from processing a mandatory corporate action for a certain entity.