Arrangements for Adjustment of Standard Chartered Structured Products and Options
Market Operations
04 Nov 2015
Hong Kong Exchanges and Clearing Limited (HKEx) has announced the arrangements for the adjustment to Standard Chartered PLC (Standard Chartered) structured products and options to account for Standard Chartered's rights issue.
Overview
For details, please refer to the announcement made by Standard Chartered on 3 November 2015.
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.
Structured products with shares of Standard Chartered as underlying asset
The listing documents of all existing structured products with the shares of Standard Chartered as underlying asset contain provisions that deal with a rights issue. Structured product issuers will make announcements in the evening of 11 November 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.
Standard Chartered Options
Trading Arrangements
The trading arrangements for the existing Standard Chartered stock option under trading symbol STC will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions
Open positions of Standard Chartered stock option series under trading symbol STC which exist after the market close on the business day immediately before the ex-rights date will be adjusted and transferred to stock option series under trading symbol STA.
|
| 2. |
Introduction of New Stock Option Series for Trading
On the ex-rights date, new Standard Chartered stock option series based on the standard contract size will be introduced for trading under the standard trading symbol STC. |
Details of the adjustment procedures for Standard Chartered stock option series under trading symbol STC are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
7 Existing Shares + (2 New Shares x $55.60 / $S*)
7 Existing Shares + 2 New Shares |
Rounded to the nearest
4 decimal places. Adjustment will only be made if the AR is smaller than 1. |
|
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
(50 shares / AEP) |
Rounded to the nearest
4 decimal places |
* Where $55.60 is the Issue Price for the New Share and $S is the underlying stock closing price on 11 November 2015 (the business day immediately before the ex-rights date).
|
Contract |
Trading Symbol |
Contract Size
(Shares) |
Availability For Trading |
Addition of New Stock Option Series on and after the ex-rights date |
|
Adjusted |
STA |
ACS |
From ex-rights date to
29 September 2016 |
No |
|
Standard |
STC |
50 |
From ex-rights date onwards |
Yes |
Investors should note that the adjusted and standard stock option series will 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.
For detailed trading and clearing operational arrangement, please refer to the circular.
Ends