Hong Kong Exchanges and Clearing Limited (HKEx) announced the arrangements for the adjustment to the contract terms of all open Hong Kong & China Gas futures and options contracts in existence after the market close on the business day immediately before the ex-bonus day, which is 14 May 2010, to account for bonus shares to be issued on the basis of one bonus share for every 10 existing shares.
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.
Hong Kong & China Gas Futures
Adjustment Procedures
Adjustment will be made to the open positions of Hong Kong & China Gas futures contracts which exist after the market close on the business day immediately before the ex-bonus day. The details of the adjustment procedures are as follows:
|
Adjustment Term |
Formula |
Remark |
|
Adjustment Ratio (AR) |
10 shares / (10 shares + 1 bonus share) = 0.9091 |
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 ( 1,000 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-bonus day, the open positions will be transferred to the adjusted futures contracts. In addition, new contracts based on the standard contract multiplier will be introduced for trading on the ex-bonus day, 14 May 2010. Details of the adjusted and standard contracts available for trading on and after the ex-bonus day are shown below:
Contract |
Trading Symbol |
Contract Multiplier(Shares) |
Availability For Trading |
Addition of
New Futures Contracts
on and after the
Ex-bonus day |
|
Adjusted |
HKA |
ACM |
From ex-bonus day to
30 December 2010 |
No |
|
Standard |
HKG |
1,000 |
From ex-bonus day 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.
Hong Kong & China Gas Options
Adjustment Procedures
Adjustment will be made to the open positions of Hong Kong & China Gas options contracts which exist after the market close on the business day immediately before the ex-bonus day. The details of the adjustment procedures are as follows:
|
Adjustment Term |
Formula |
Remark |
|
Adjustment Ratio (AR) |
10 shares / (10 shares + 1 bonus share) = 0.9091 |
Rounded to the nearest 4 decimal places |
|
Adjusted Exercise Price (AEP) |
Exercise price of outstanding options series x AR |
Rounded to the nearest 2 decimal places |
|
Adjusted Contract Size (ACS) |
Exercise price of outstanding options series x (1,000 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-bonus day, the open positions will be transferred to the adjusted options series. In addition, new options series based on the standard contract size will be introduced for trading on the ex-bonus day, 14 May 2010. Details of the adjusted and standard contracts available for trading on and after the ex-bonus day are shown below:
Contract |
Trading Symbol |
Contract Size
(Shares) |
Availability For Trading |
Addition of
New Options Series
on and after the
Ex-bonus day |
|
Adjusted |
HKA |
ACS |
From ex-bonus day to
30 December 2010 |
No |
|
Standard |
HKG |
1,000 |
From ex-bonus day onwards |
Yes |
Investors should note that the cash settlement amount of adjusted and standard options series on the expiry day will be calculated using their respective contract sizes. There will not be any changes to the number of open positions and other contract terms after the transfer of positions.