Arrangements for Adjustment of FIH Structured Products, Futures and Options
Market Operations
23 Mar 2015
Hong Kong Exchanges and Clearing Limited (HKEx) announced the arrangements for the adjustment to FIH Mobile Ltd (FIH) structured products, futures and option contracts to account for FIH’s proposed special dividend.
Highlights of the adjustment arrangements are set forth below. Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.
|
Underlying Stock (Stock Code) |
FIH Mobile Ltd (2038) |
|
Corporate Action |
Special Dividend of US$0.01926 per share |
|
Ex-date |
2 June 2015 |
The special dividend per share in Hong Kong dollars (to be rounded up to two decimal places) will be calculated at the rate of exchange quoted by FIH’s relevant banker at its middle rate of exchange prevailing on the date of the Annual General Meeting which will be held on 28 May 2015. More details of the capital adjustment will be announced in due course.
For details of the proposed special dividend, please refer to the announcement made by FIH on 19 March 2015:
Structured products with shares of FIH as underlying asset
The listing documents of all existing structured products with the shares of FIH as underlying asset contain provisions that deal with a cash distribution including a special dividend. Structured product issuers will make announcements in the evening of 1 June 2015 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price as appropriate) and investors should read the contents of such announcements carefully.
FIH Futures
Trading Arrangements
The trading arrangements for the existing FIH stock futures under trading symbol FIH will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions
Open positions of FIH stock futures series under trading symbol FIH which exist after the market close on the business day immediately before the ex-date will be adjusted and transferred to stock futures series under trading symbol FIA.
|
| 2. |
Introduction of New Stock Futures Series for Trading
On the ex-date, new FIH stock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol FIH. |
Details of the adjustment procedures for FIH stock futures series under trading symbol FIH are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
(underlying stock closing price – ordinary dividend – special dividend) /
(underlying stock closing price – ordinary dividend) |
Rounded to the nearest
4 decimal places |
|
Adjusted Contracted Price (ACP) |
Contracted price of outstanding stock futures series x AR |
Rounded to the nearest
2 decimal places |
|
Adjusted Contract Multiplier (ACM) |
Contracted price of outstanding stock futures series x
(1,000 shares / ACP) |
Rounded to the nearest
4 decimal places |
|
Contract |
Trading Symbol |
Contract Multiplier(Shares) |
Availability For Trading |
Addition of New Stock Futures Series on and after the ex-date |
|
Adjusted |
FIA |
ACM |
From ex-date to
30 December 2015 |
No |
|
Standard |
FIH |
1,000 |
From ex-date onwards |
Yes |
Investors should note that the adjusted and standard stock futures series have different contract multipliers. There will not be any changes to the number of open positions and other contract terms after the transfer of positions.
FIH Options
Trading Arrangements
The trading arrangements for the existing FIH stock options under trading symbols FIH will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions
Open positions of FIH stock option series under trading symbol FIH which exist after the market close on the business day immediately before the ex-date will be adjusted and transferred to stock option series under trading symbol FIA.
|
| 2. |
Introduction of New Stock Option Series for Trading
On the ex-date, new FIH stock option series based on the standard contract size will be introduced for trading under the standard trading symbol FIH. |
Details of the adjustment procedures for FIH stock option series under trading symbol FIH are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
(underlying stock closing price – ordinary dividend – special dividend) /
(underlying stock closing price – ordinary dividend) |
Rounded to the nearest
4 decimal places |
|
Adjusted Exercise Price (AEP) |
Exercise price of outstanding stock option series x AR |
Rounded to the nearest
2 decimal places |
|
Adjusted Contract Size (ACS) |
Exercise price of outstanding stock option series x (1,000 shares / AEP) |
Rounded to the nearest
4 decimal places |
|
Contract |
Trading Symbol |
Contract Size(Shares) |
Availability For Trading |
Addition of New Stock Option Series on and after the ex-date |
|
Adjusted |
FIA |
ACS |
From ex-date to
29 June 2016 |
No |
|
Standard |
FIH |
1,000 |
From ex-date onwards |
Yes |
Investors should note that the adjusted and standard stock option series have different contract sizes. There will not be any changes to the number of open positions and other contract terms after the transfer of positions.
Ends