HKEx: Arrangements For Adjustment Of MGM China Options

Hong Kong Exchanges and Clearing Limited (HKEx) has announced the arrangements for the adjustment to the contract terms of all open options contracts on MGM China Holdings' (MGM China) shares to account for the following special dividend:

Highlights of the adjustment arrangements for MGM China options contracts are set forth below.  Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.

For details of the special dividend, please refer to the announcement by MGM China on 19 February 2014. 

Adjustment Procedures

 Adjustments will be made to the open positions which exist after the market close on the business day immediately before the ex-date.  The adjustment procedures are as follows: 

Trading of Adjusted and Standard Contracts

 After the market close on the business day immediately before the ex-date, the open positions will be transferred to the adjusted option series.  In addition, new option series based on the standard contract size will be introduced for trading on the ex-date.  Details of the adjusted and standard contracts available for trading on and after the ex-date are shown below: 

Investors should note that the adjusted and standard option series 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.