German broker Comdirect says that the DTCC told told their despository (aka Clearstream) that the splividend should not be treated as a dividend but as a regular stock split. (More inside)

by ronk99

This info comes from the following thread in Comdirect support forums: community.comdirect.de/t5/Wertpapiere-Anlage/GameStop-Dividend-Split/m-p/245619/

First of all, as a cherry on top, this quote from earlier in the same thread:

“Der Aktiensplit in dieser Gattung ist so richtig und es wird hier kein Storno erfolgen bzw. notwendig sein. Die im Markt kursierenden Gerüchte es handele sich bei dieser Kapitalmaßnahme um eine Stockdividende sind falsch.“

Translation: „The stock split in this class is correct and there will be no cancellation or need for cancellation. The rumors circulating in the market that this capital measure is a stock dividend are false.“

Then, after being confronted with the official announcement of the stock dividend on GameStops investor relations page, the support guy answered that he talked to Comdirects depository (Clearstream) and asked them several times wether the event with GameStop stock is to be treated as a Stock Split or as a stock dividend. He states that he was told by Clearstream, that the DTCC told them that what is happening is a regular stock split, not a stock dividend. Wtf is happening? No clue. Here is the text and a translation:

„Hallo zusammen, wir haben bereits zum Veröffentlichungsdatum und zuletzt auch heute nochmal bei der Lagerstelle nachgehakt, da die Klassifizierung der Kapitalmaßnahme unklar war. Gerade weil in der Mitteilung der Gesellschaft sowohl von Split als auch Dividend Stock gesprochen wird.

We are primarily funded by readers. Please subscribe and donate to support us!

Antwort der Lagerstelle:

„Das Event wurde nochmals bei der DTTC (Depository Trust and Clearing Corporation ) überprüft und ist hier weiterhin als Stock Split geführt.“

Der aktuelle Stand bei dieser Kapitalmaßnahme lautet also Behandlung als Aktiensplit und es wird entgegen unserer vorherigen Aussage kein Storno erfolgen. Gruß“

Translation: „Hello all, we have already checked with the depository on the publication date and most recently again today, as the classification of the corporate action was unclear. Especially because the company’s announcement talks about both Split and Dividend Stock.

Answer from the depository:

“The event has been checked again with DTTC (Depository Trust and Clearing Corporation ) and is still listed here as a stock split.”

So the current status on this corporate action is treatment as a stock split and there will be no cancellation contrary to our previous statement. Greetings“

Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.