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العربية

Corporate Actions

Andrew Ch.
  • Updated

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1. Dividends:

  • Clients holding long positions on the applicable share at the ex-div date will receive a dividend in the form of a cash adjustment (a deposit paid into their trading account).
  • Clients holding short positions on the applicable share at the ex-dividend date will be charged the dividend amount in the form of a cash adjustment (a withdrawal deducted from their trading account).
  • We reserve the right to increase margin requirements prior to the release of a dividend.
  • Stocks may be offered as a dividend. The dividend amount will be calculated using the share price to determine the cash adjustment (see Fractional Share Adjustments).

2. Fractional Share Adjustments:

In the event that the corporate action results in a fractional position, the fractional component may be represented as a cash adjustment independent of the handling for the non-fractional position. The adjustment value will equal the fractional position times the adjusted closing price on the day prior to the ex-date.

3. Other Corporate Actions (including, but not limited to Stock Splits and Rights Issue):

An appropriate adjustment to the Client’s position will be made to mirror the economic impact of any corporate action.

4. Earnings Announcements:

We will increase margin requirements and limit maximum exposure on the relevant symbols prior to earnings announcements.

5. De-Listing:

In the event of a share being de-listed, the Client’s position will be closed at the last market price traded.

6. Miscellaneous:

For certain corporate actions not specifically mentioned in this section, including, but not limited to Mergers, Acquisitions (together commonly referred to as ‘M&A’), and Leveraged Buyouts (‘LBOs’), we reserve the right to:

  • increase margin requirements;
  • suspend or halt trading in the relevant instrument;
  • limit the maximum exposure (order size) to the relevant instrument;
  • close the positions in the event that the relevant instrument is no longer trading on the relevant exchange;
  • take any other action as we deem necessary in the given circumstances.