Capital adjustment to the SMIC stock futures contracts will be made on the Effective Date based on the corporate action announced. No adjustment to the SMIC stock futures contracts will be made due to change of board lot size.
For details, please refer to the announcement made by SMIC on 30 September 2016, 11 November 2016 and 17 November 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 SMIC as underlying asset
The listing documents of all existing structured products with the shares of SMIC as underlying asset contain provisions that deal with share consolidations. Structured product issuers will make announcements in the evening of 6 December 2016 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price) and investors should read the contents of such announcements carefully.
Subject to the share consolidation becoming effective, structured product issuers will make announcements regarding the change in board lot size in the evening of 20 December 2016.
SMIC Futures
Trading Arrangements
The trading arrangements for the existing SMIC stock futures under trading symbol SMC will be as follows:
1. |
Adjustment and Transfer of Outstanding Positions
Open positions of SMIC stock futures series under trading symbol SMC which exist after market close on the business day immediately before the Effective Date will be adjusted and transferred to stock futures series under trading symbol SMA.
|
2. |
Introduction of New Stock Futures Series for Trading
On the Effective Date, new SMIC stock futures series with Contract Multiplier of 5,0001shares will be introduced for trading under the standard trading symbol SMC. |
Details of the adjustment procedures for SMIC stock futures series under trading symbol SMC are as follows:
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.
For detailed trading and clearing operational arrangement, please refer to the circular.
1 |
The contract multiplier of SMIC stock futures contracts will be changed from the existing 50,000 Shares to5,000 Shares |
Ends