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Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to MTR Corporation Ltd (MTR) structured products, futures and options to account for MTR's second special dividend.
Overview
|
Company (Stock Code) |
MTR (66) |
|
Corporate Action |
Second Special Dividend of $2.20 per Share |
|
Ex-date |
19 May 2017 |
For details, please refer to the announcement made by MTR on 7 March 2017.
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 MTR as underlying asset
The listing documents of all existing structured products with the shares of MTR 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 18 May 2017 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price) and investors should read the contents of such announcements carefully.
MTR Futures
Trading Arrangements
The trading arrangements for the existing MTR stock futures under trading symbol MTR will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions Open positions of MTR stock futures series under trading symbol MTR 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 MTA. |
| 2. |
Introduction of New Stock Futures Series for Trading On the ex-date, new MTR stock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol MTR. |
Details of the adjustment procedures for MTR stock futures series under trading symbol MTR are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
(underlying stock closing price – second special dividend – ordinary dividend) / (underlying stock closing price – ordinary dividend) |
Rounded to the nearest |
|
Adjusted Contracted Price (ACP) |
Contracted price of outstanding stock futures series x AR |
Rounded to the nearest |
|
Adjusted Contract Multiplier (ACM) |
Contracted price of outstanding stock futures series x (500 shares / ACP) |
Rounded to the nearest |
|
Contract |
Trading Symbol |
Contract Multiplier |
Availability For Trading |
Addition of New Stock Futures Series on and after the ex-date |
|
Adjusted |
MTA |
ACM |
From ex-date to |
No |
|
Standard |
MTR |
500 |
From ex-date onwards |
Yes |
For detailed trading and clearing arrangements, please refer to the circular.
MTR Options
Trading Arrangements
The trading arrangements for the existing MTR stock options under trading symbol MTR will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions Open positions of MTR stock option series under trading symbol MTR 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 MTA. |
| 2. |
Introduction of New Stock Option Series for Trading On the ex-date, new MTR stock option series based on the standard contract size will be introduced for trading under the standard trading symbol MTR. |
Details of the adjustment procedures for MTR stock options series under trading symbol MTR are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
(underlying stock closing price – second special dividend – ordinary dividend) /(underlying stock closing price – ordinary dividend) |
Rounded to the nearest |
|
Adjusted Exercise Price (AEP) |
Exercise price of outstanding stock option series x AR |
Rounded to the nearest |
|
Adjusted Contract Size (ACS) |
Exercise price of outstanding stock option series x (500 shares / AEP) |
Rounded to the nearest |
|
Contract |
Trading Symbol |
Contract Size(Shares) |
Availability For Trading |
Addition of New Stock Option Series on and after the ex-date |
|
Adjusted |
MTA |
ACS |
From ex-date to |
No |
|
Standard |
MTR |
500 |
From ex-date onwards |
Yes |
For detailed trading and clearing arrangements, please refer to the circular. 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.
