Why do I have a reserved position due to a corporate action?

Reserved Positions for Corporate Actions

Reserved positions related to corporate actions may occur for the following reasons:

• Reserved Amount – Instruction Received
• Reserved Amount – Stock Accruals

On the trading platform, clients may notice a message stating:
"You have a reserved position due to a corporate action."

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Reserved Amount – Instruction Received

When a client submits instructions to participate in a corporate action event—such as a voluntary offer—Totality Markets may automatically reserve the corresponding stock in the client’s portfolio. This ensures that the required securities are set aside for participation as per the instruction submitted via the Corporate Action module.

These holdings will be flagged as “Reserved for Corporate Action” and will remain in this status until the proceeds from the event are received on or after the designated payment date.

Once the proceeds are received:

• The reserved stock will be debited from the portfolio
• The corresponding proceeds (cash or securities) will be credited and shown as unreserved

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Reserved Amount – Stock Accruals

Stock accruals represent estimated securities due from a corporate action and are shown in the platform to give clients visibility of expected entitlements prior to the official payment (realization) date.

These positions are marked as reserved until the payment date, at which point they will be updated and no longer appear as reserved once the securities are received and confirmed.

Please note:

• The quantities shown are estimates and may be subject to change or reversal before the payment date.
• You can verify the reserved amount and related details in the Corporate Action module by referencing the relevant Event ID.
  (For example, Event ID: 9877451).

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