Hong Kong Exchanges and Clearing Limited (HKEx) has announced the arrangements for the adjustment to the contract terms of all open HSBC futures and option contracts in existence after the market close on
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.
Underlying Stock |
HSBC Holdings plc |
Corporate Action |
Five for 12 rights issue |
Ex-rights day |
|
HSBC Futures
Adjustment Procedures
Adjustment will be made to the open positions of HSBC futures contracts which exist after the market close on
Adjustment Term |
Formula |
Adjustment R |
12 old shares + (5 new shares x $28 / $S*) |
Adjusted contracted prices (ACP) |
Contracted prices of outstanding stock futures contracts ¡Ñ AR |
Adjusted Contract Multiplier (ACM) |
Contracted prices of outstanding stock futures contracts |
* |
Where $28 is the issue price for the new shares and $S will be the underlying stock's closing price on |
Trading of Adjusted and Standard Contracts
After the market close on
Contract |
Trading Symbol |
Contract Multiplier |
Available for Trading |
Addition of New Contract Months |
Adjusted |
HKC |
ACM |
From ex-rights day to |
No |
Standard |
HKB |
400 |
From ex-rights day onwards |
Yes |
Investors should note th
HSBC Options
Adjustment Procedures
Adjustment will be made to the open positions of HSBC option contracts which exist after the market close on
Adjustment Term |
Formula |
Adjustment R |
12 old shares + (5 new shares x $28 / $S*) |
Adjusted Exercise price (AEP) |
Exercise price of outstanding option series ¡Ñ AR |
Adjusted Contract Size (ACS) |
Exercise price of outstanding option series x (400 shares / |
* |
Where $28 is the issue price for the new shares and $S will be the underlying stock closing price on |
Trading of Adjusted and Standard Contracts
After the market close on
Contract |
Trading Symbol |
Contract Size |
Available for Trading |
Addition of New Option Series |
Adjusted |
HKC |
ACS |
From ex-rights day to |
No |
Standard |
HKB |
400 |
From ex-rights day onwards |
Yes |
Investors should note th