Arrangements for Adjustment of MTR Structured Products, Futures and Options
Market Operations
05 May 2016
Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to MTR Corporation Ltd (MTR) structured products, futures and options to account for MTR's special dividend.
Overview
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Company (Stock Code)
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MTR (66)
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Corporate Action
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Special dividend of $4.40 in aggregate per share
(will be paid in two equal tranches of $2.20 per share)
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Ex-date
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First special dividend: 20 May 16
Second special dividend: to be announced by MTR
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For details, please refer to the announcements made by MTR on 14 March 2016 and 3 May 2016 respectively.
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 MTR as underlying asset
The listing documents of all existing structured products with the shares of MTR 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 19 May 2016 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price) and investors should read the contents of such announcements carefully.
MTR Futures
Trading Arrangements
The trading arrangements for the existing MTR stock futures under trading symbol MTR will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions
Open positions of MTR stock futures series under trading symbol MTR 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 MTA.
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| 2. |
Introduction of New Stock Futures Series for Trading
On the ex-date, new MTR stock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol MTR.
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Details of the adjustment procedures for MTR stock futures series under trading symbol MTR are as follows:
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Adjustment Ratio (AR)
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(underlying stock closing price – ordinary dividend – special dividend) /(underlying stock closing price – ordinary dividend)
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Rounded to the nearest
4 decimal places
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Adjusted Contracted Price (ACP)
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Contracted price of outstanding stock futures series x AR
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Rounded to the nearest
2 decimal places
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Adjusted Contract Multiplier (ACM)
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Contracted price of outstanding stock futures series x
(500 shares / ACP)
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Rounded to the nearest
4 decimal places
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Adjusted
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MTA
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ACM
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From ex-date to
29 December 2016
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No
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Standard
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MTR
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500
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From ex-date onwards
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Yes
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Investors should note that the adjusted and standard stock futures 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.
MTR Options
Trading Arrangements
The trading arrangements for the existing MTR stock options under trading symbol MTR will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions
Open positions of MTR stock option series under trading symbol MTR 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 MTA.
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| 2. |
Introduction of New Stock
Option Series for Trading
On the ex-date, new MTR stock option series based on the standard contract size will be introduced for trading under the standard trading symbol MTR.
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Details of the adjustment procedures for MTR stock options series under trading symbol MTR are as follows:
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Adjustment Ratio (AR)
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(underlying stock closing price – ordinary dividend – special dividend) /
(underlying stock closing price – ordinary dividend)
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Rounded to the nearest 4 decimal places
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Adjusted Exercise Price (AEP)
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Exercise price of outstanding stock option series x AR
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Rounded to the nearest 2 decimal places
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Adjusted Contract Size (ACS)
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Exercise price of outstanding stock option series x (500 shares / AEP)
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Rounded to the nearest 4 decimal places
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Adjusted
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MTA
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ACS
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From ex-date to 30 March 2017
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No
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Standard
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MTR
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500
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From ex-date onwards
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Yes
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Investors should note that the adjusted and standard stock options 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 arrangements, please refer to the SEHK and HKFE circulars.
Ends