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