Arrangements for Adjustment of Swire Pacific A Futures and Options
Market Operations
19 Aug 2011
Hong Kong Exchanges and Clearing Limited (HKEx) has announced the arrangements for the adjustment to the contract terms of all open futures and options contracts on Swire Pacific ‘A’ shares (Swire A) to account for the following proposed special interim dividend:
For details of the proposed special interim dividend, please refer to the announcement by Swire A on 18 August 2011.
Highlights of the adjustment arrangements for Swire A futures and options contracts are set forth below. Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.
Swire A Futures
Adjustment Procedures
Adjustments will be made to the open positions which exist after the market close on the business day immediately before the ex-date. The adjustment procedures are as follows:
|
Adjustment Term |
Formula |
Remark |
|
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 prices of outstanding stock futures contract x AR |
Rounded to the nearest 2 decimal places |
|
Adjusted Contract Multiplier (ACM) |
Contracted prices of outstanding stock futures contract x (500 shares / ACP) |
Rounded to the nearest 4 decimal places |
Trading of Adjusted and Standard Contracts
After the market close on the business day immediately before the ex-date, the open positions will be transferred to the adjusted stock futures contracts. In addition, new contracts based on the standard contract multiplier will be introduced for trading on the ex-date. Details of the adjusted and standard contracts available for trading on and after the ex-date are shown below:
|
Contract |
Trading Symbol |
Contract Multiplier(Shares) |
Availability For Trading |
Addition of New Futures Contracts on and after the Ex-date |
|
Adjusted |
SWB |
ACM
(please see table above) |
From ex-date to 29 March 2012 |
No |
|
Standard |
SWA |
500 |
From ex-date onwards |
Yes |
Investors should note that the cash settlement amount of adjusted and standard futures contracts on the last trading day will be calculated using their respective contract multipliers. There will not be any changes to the number of open positions and other contract terms after the transfer of positions.
Swire A Options
Adjustment Procedures
Adjustments will be made to the open positions which exist after the market close on the business day immediately before the ex-date. The adjustment procedures are as follows:
|
Adjustment Term |
Formula |
Remark |
|
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 option series x AR |
Rounded to the nearest
2 decimal places |
|
Adjusted Contract Size (ACS) |
Exercise price of outstanding option series x
(500 shares / AEP) |
Rounded to the nearest
4 decimal places |
Trading of Adjusted and Standard Contracts
After the market close on the business day immediately before the ex-date, the open positions will be transferred to the adjusted option series. In addition, new option series based on the standard contract size will be introduced for trading on the ex-date. Details of the adjusted and standard contracts available for trading on and after the ex-date are shown below:
|
Contract |
Trading Symbol |
Contract Size
(Shares) |
Availability For Trading |
Addition of New Option Series
on and after the Ex-date |
|
Adjusted |
SWB |
ACS
(please see table above) |
From ex-date to 28 June 2012 |
No |
|
Standard |
SWA |
500 |
From ex-date onwards |
Yes |
Investors should note that the adjusted and standard 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