Reorganization Announcements

DTC receives information from a variety of sources to announce to Participants upcoming corporate action events, such as time-critical voluntary events (e.g., put options, rights offers, and tender/exchange offers) and mandatory events (e.g., stock dividends, mergers, plans of reorganization, and reverse splits). Each announcement provides the terms and conditions of the event and applicable expiration or other critical dates and data elements. The ability for Participants to submit timely voluntary instructions to DTC for a voluntary event and the timeliness and accuracy of cash and/or stock payments DTC makes to Participants is contingent upon, among other things, the timeliness and accuracy of the related announcements.

The Reorganization Announcements sigma levels are predicated on defects as defined below.

• Accuracy Defect (Internal) – Measures the percentage of Reorganization announcements in which internal defects of critical data require correction (e.g. Incorrect payable date, meeting date not populated, etc.), relative to the total number of Reorganization announcements. Such defects can cause processing problems and lead to financial exposure.
• Timeliness Defect (Internal) - Measures the timeliness of Reorganization announcements as follows (1) all announcements not completed within 24 hours of notification (2) announcements of tender/exchange offers and mergers with elections for which voluntary instructions can not be submitted by Participants within 48 hours of the announcement and (3) warrant and convertible securities maturity announcements not completed a minimum of 30 days before maturity date. Such internal defects can cause processing problems and lead to financial exposure.

 Sigma Trend Charts (pdf)