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You can deliver a block of IPO shares directly to a Syndicate Member's Institutional Customer, at the customer's request ("Directed Concession"). You are set up as the associated Syndicate Member in the IPO database. Directed Concessions can be distributed via DTC's ID system or via the PTS functions DO (Option 4) or NDOM (Option 6).

Directed Concession deliveries are flagged on your tracking reports with an asterisk (*) and with the delivering custodian's Participant number. If a Directed Concession customer flips, you must check your internal records to identify the customer's Syndicate Member.

Distribute Directed Concession Shares via ID

1 Enter information in the following fields of the Institutional Delivery Trade Input Screen:

•

Market Code: enter Market Code 51

•

Agent Internal Account: enter the Agent Bank or Prime Broker's Internal Account

number for the customer

•

Broker Internal Account: enter the Executing Broker's Internal Account (BIA) number

for the customer

Note- The Internal Account numbers must be entered correctly in order to ensure

accurate processing of the transaction. If either is missing, or entered incorrectly, an error code of 91 will appear on the Confirmation and Affirmation tickets. Refer to Resolve Internal Account Number Discrepancies for information on how to correct the Agent Internal Account number.

2 Refer to IDTI for additional ID field and processing information.

Distribute Directed Concession Shares via DO or NDOM

1 Enter the information in the following fields of the Initial Public Offering Deliver Orders Screen:

•

Recv-Pt: enter the Agent Bank or Prime Broker's Participant number

•

REAS: enter Reason Code 530

•

Int-Acct#: enter the Agent Bank or Prime Broker's Internal Account number for the

customer

•

Bkr-Acct#: enter the Executing Broker's Internal Account (BIA) number for the

customer

Note- The Internal Account numbers must be entered to ensure accurate processing of

the transaction. DTC rejects Initial Distribution deliveries in which either number is missing.

Result- The system captures the Agent Bank/Prime Broker Internal Account number along with

the BIA number and the associated Syndicate Member and populates the IPO database with this information.

Distribute Shares for Oversubscriptions

When you have less shares than it needs to make its Initial Distribution deliveries, it can purchase or borrow shares from the Secondary Market for distribution ("Oversubscription").

Shares purchased or borrowed in the Secondary Market for Oversubscription Distribution will reside in the Co-Manager's Free Account.

•

Move the shares back to its IPO Control Account via the PTS function IPOU (Option 6), and perform an Initial Distribution ID or DO/ NDOM delivery.

•

Deliver the shares directly from its Free Account using the appropriate ID or DO/NDOM codes.

Move Shares From the Free Account to the IPO Control Account for Oversubscriptions

1 On the IPO- Tracking System Main Menu Screen, select Option 6, Oversubscription for Lead

Underwriter.

2 Enter information in the following fields of the IPO- Oversubscription for Lead Underwriter Screen:

•

CUSIP: enter the issue's CUSIP number

•

Share Quantity: enter the number of Free shares being transferred to the IPO Control

Account

3 Press the ENTER key.

4 Refer to Appendix D for additional field and processing information.

5 Perform an Initial Distribution DO, NDOM or ID delivery. Refer to Distribute Shares to Agent

Banks and Prime Brokers via ID and Distribute Shares to Agent Banks and Prime Brokers via DO or NDOM in this chapter for information.

Distribute Oversubscribed Shares to Agent Banks and Prime Brokers via ID

1 Enter information in the following fields of the Institutional Delivery Trade Input Screen:

•

Market Code: enter Market Code 52

•

Agent Internal Account: enter the Agent Bank or Prime Broker's Internal Account

number for the customer

•

Broker Internal Account: enter the Executing Broker's Internal (BIA) Account number

for the customer

Note- The Internal Account numbers must be entered correctly in order to ensure

accurate processing of the transaction. If either is missing, or entered incorrectly, an error code of 91 will appear on the Confirmation and Affirmation tickets. Refer to Resolve Internal Account Number Discrepancies for information on how to correct the Agent Internal Account number.

2 Refer to IDTI for additional ID field and processing information.

Result- Shares move from the Co-Manager's Free Account to the Agent Bank's Free Account (and

are marked as IPO shares in the database) or to the Prime Broker's IPO Control Account. Distribute Oversubscribed Shares to Agent Banks and Prime Brokers via DO or NDOM

1 Enter the information in the following fields of the Initial Public Offering Deliver Orders Screen:

•

Recv-Pt: enter the Agent Bank or Prime Broker's Participant number

•

REAS: enter Reason Code 540

•

Int-Acct#: enter the Agent Bank or Prime Broker's Internal Account number for the

customer

•

Bkr-Acct#: enter the Executing Broker's Internal Account (BIA) number for the

Note- The Internal Account numbers must be entered correctly in order to ensure

accurate processing of the transaction. DTC rejects Initial Distribution deliveries in which either number is missing.

Result- The system captures the AIA number along with the BIA number and the associated

Syndicate Member and populates the IPO database with this information.

Shares move from the Co-Manager's Free Account to the Agent Bank's Free Account (and are marked as IPO shares in the database) or to the Prime Broker's IPO Control Account.

In document MANUAL DE PROCEDIMIENTOS (página 33-42)