Arrangements for Adjustment of BOC HK Structured Products, Futures and Options
Market Operations
31 Aug 2016
Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to BOC Hong Kong (Holdings) Ltd (BOC HK) structured products, futures and options to account for BOC HK's special dividend.
Overview
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Company (Stock Code)
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BOC HK (2388)
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Corporate Action
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Special Dividend of $0.71 per share
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Ex-date
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19 September 2016
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For details, please refer to the announcement made by BOC HK on 30 August 2016.
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 BOC HK as underlying asset
The listing documents of all existing structured products with the shares of BOC HK 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 15 September 2016 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price) and investors should read the contents of such announcements carefully.
BOC HKFutures
Trading Arrangements
The trading arrangements for the existing BOC HK stock futures under trading symbol BOC will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions
Open positions ofBOC HKstock futures series under trading symbol BOC 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 BOA.
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| 2. |
Introduction of New Stock Futures Series for Trading
On the ex-date, newBOCHK stock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol BOC.
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Details of the adjustment procedures for BOC HK stock futures series under trading symbol BOC are as follows:
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Adjustment Term
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Formula
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Remarks
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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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Contract
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Trading Symbol
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Contract Multiplier(Shares)
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Availability For Trading
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Addition of New Stock Futures Series on and after the ex-date
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Adjusted
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BOA
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ACM
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From ex-date to30 March 2017
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No
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Standard
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BOC
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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.
BOC HK Options
Trading Arrangements
The trading arrangements for the existing BOC HK stock options under trading symbol BOC will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions
Open positions ofBOC HKstock option series under trading symbol BOC 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 BOA.
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| 2. |
Introduction of New Stock Option Series for Trading
On the ex-date, newBOC HKstock option seriesbased on the standard contract sizewill be introduced for trading under the standard trading symbol BOC.
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Details of the adjustment procedures for BOC HK stock options series under trading symbol BOC are as follows:
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Adjustment Term
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Formula
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Remarks
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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 seriesx 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 seriesx (500 shares / AEP)
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Rounded to the nearest 4 decimal places
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Contract
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Trading Symbol
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Contract Size(Shares)
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Availability For Trading
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Addition of New Stock Option Series on and
after the ex-date
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Adjusted
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BOA
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ACS
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From ex-date to
28 September 2017
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No
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Standard
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BOC
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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