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Hong Kong Exchanges and Clearing Limited (HKEx) has announced the arrangements for the adjustment to the contract terms of all open Wharf futures and option contracts in existence after the market close on 12 December 2007, the business day immediately before the ex-rights date (ex-date), which is 13 December 2007, to account for rights shares to be issued on the basis of one rights share for every eight existing ordinary shares.
Highlights of the adjustment arrangements to Wharf futures and option contracts are set forth below. Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.
|
Underlying Stock |
The Wharf (Holdings) Limited |
|
Corporate Action |
One rights share for every eight existing shares |
|
Ex-date |
|
Wharf Futures
Adjustment Procedures
Adjustment will be made to the open positions of Wharf futures contracts which exist after the market close on 12 December 2007, the business day immediately before the ex-date. The details of the adjustment procedures are as follows:
|
Adjustment Term |
Formula |
|
Adjustment Ratio (AR) |
(8 existing shares + (1 new share x $30 / closing price
before ex-date) |
|
Adjusted Contracted Prices (ACP) |
Contracted prices of outstanding stock futures contract x AR |
|
Adjusted Contract Multiplier (ACM) |
Contracted prices of outstanding stock futures contract x |
(Note: AR will be announced through DCASS# Clearing Message Window after market close on 12 December 2007.)
Trading of Adjusted and Standard Contracts
After the market close on 12 December 2007, the business day immediately before the ex-date, 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-date, 13 December 2007. Details of the adjusted and standard contracts available for trading on and after the ex-date are shown below:
|
Contract |
Trading Symbol |
Contract Multiplier |
Available for Trading |
Addition of |
|
Adjusted |
WHA |
ACM |
From ex-date to |
No |
|
Standard |
WHL |
1,000 |
From ex-date 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.
Wharf Option
Adjustment Procedures
Adjustment will be made to the open positions of Wharf option contracts which exist after the market close on 12 December, the business day immediately before the ex-date. The details of the adjustment procedures are as follows:
|
Adjustment Term |
Formula |
|
Adjustment Ratio (AR) |
(8 existing shares + (1 new share x $30 / closing price before
ex-date) |
|
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) |
After the market close on 12 December 2007, 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, 13 December 2007. Details of the adjusted and standard contracts available for trading on and after the ex-date are shown below:
|
Contract |
Trading Symbol |
Contract Size |
Available for Trading |
Addition of |
|
Adjusted |
WHA |
ACS |
From ex-date to |
No |
|
Standard |
WHL |
1,000 |
From ex-date onwards |
Yes |
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.
# DCASS is the clearing and settlement system for the futures and options traded on HKEx's exchanges.
