HKEx to Discontinue Trading in PCCW Futures and Options

Market Operations

28 Apr 2009

HKEx has decided to discontinue the trading of futures and options on PCCW due to market participants’ limited interest in the contracts.

As a result, no new contract months will be introduced for trading.

Any contract months with open positions will be available for trading until the positions are closed or the last trading day/expiry day of the respective contract months.

Any open positions in PCCW futures or options after the market close on the business day immediately before 7 May 2009, which is the ex-date for the special dividend announced on 23 April 2009, will be adjusted to account for the special dividend.

Below are highlights of the adjustment arrangements for PCCW futures and options.

Underlying Stock	PCCW Limited
Corporate Action	Special dividend of $1.30 per share
Ex-date	7 May 2009

PCCW Futures

Adjustment Procedures

Adjustment will be made to any open positions of PCCW futures contracts which exist after the market close on 6 May 2009, the business day immediately before the ex-date. The details of the adjustment procedures are as follows:

Adjustment Term	Formula
Adjustment Ratio (AR)	(Underlying stock closing price - special dividend) / (underlying stock closing price) *
Adjusted Contract Price (ACP)	Contract price of outstanding futures contract x AR
Adjusted Contract Multiplier (ACM)	(Contract price of outstanding futures contract x 1,000 shares) / ACP

* Underlying stock closing price refers to the closing price on the day prior to the ex-date.

After the market close on 6 May 2009, any open positions will be transferred to the adjusted futures contracts. From ex-date onwards, only adjusted futures contracts represented by the trading symbol of PCA, if any, will be available for trading.

PCCW Options

Adjustment Procedures

Adjustment will be made to any open positions of PCCW option contracts which exist after the market close on 6 May 2009, the business day immediately before the ex-date. The details of the adjustment procedures are as follows:

Adjustment Term	Formula
Adjustment Ratio (AR)	(Underlying stock closing price - special dividend) / (underlying stock closing price) *
Adjusted Exercise Price (AEP)	Exercise price of outstanding option series x AR
Adjusted Contract Size (ACS)	(Exercise price of outstanding option series x 1,000 shares) / AEP

* Underlying stock closing price refers to the closing price on the day prior to the ex-date.

After the market close on 6 May 2009, any open positions will be transferred to the adjusted option contracts. From ex-date onwards, only adjusted option contracts represented by the trading symbol of PCA, if any, will be available for trading.

Investors should consult their brokers if they have any questions regarding PCCW futures and options.

Updated 28 Apr 2009