Adjustment of MTR Structured Products, Futures and Options

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 MTRon 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.

MTRFutures

Trading Arrangements

The trading arrangements for the existing MTR stock futures under trading symbol MTRwill be as follows:

1.

Adjustment and Transfer of Outstanding Positions

Open positions of MTR stock futures series under trading symbol MTRwhich 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 MTRare as follows:

Adjustment Ratio (AR)

(underlying stock closing price - second special dividend - ordinary dividend) / (underlying stock closing price - ordinary dividend)

Rounded to the nearest
4 decimal places

Adjusted Contracted Price (ACP)

Contracted price of outstanding stock futures series x AR

Rounded to the nearest
2 decimal places

Adjusted Contract Multiplier (ACM)

Contracted price of outstanding stock futures series x (500 shares / ACP)

Rounded to the nearest
4 decimal places

Adjusted

MTA

ACM

From ex-date to
28 December 2017

No

Standard

MTR

500

From ex-date onwards

Yes



For detailed trading and clearing arrangements, please refer to thecircular.

MTROptions

Trading Arrangements

The trading arrangements for the existing MTR stock options under trading symbol MTRwill be as follows:

1.

Adjustment and Transfer of Outstanding Positions

Open positions of MTR stock option series under trading symbol MTRwhich 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 sizewill be introduced for trading under the standard trading symbol MTR.



Details of the adjustment procedures for MTR stock options series under trading symbol MTRare as follows:

Adjustment Ratio (AR)

(underlying stock closing price - second special dividend - ordinary dividend) /(underlying stock closing price - ordinary dividend)

Rounded to the nearest
4 decimal places

Adjusted Exercise Price (AEP)

Exercise price of outstanding stock option series x AR

Rounded to the nearest
2 decimal places

Adjusted Contract Size (ACS)

Exercise price of outstanding stock option series x (500 shares / AEP)

Rounded to the nearest
4 decimal places

Adjusted

MTA

ACS

From ex-date to
28 March 2018

No

Standard

MTR

500

From ex-date onwards

Yes

For detailed trading and clearing arrangements, please refer to thecircular.

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.

Ends

HKEx - Hong Kong Exchanges and Clearing Ltd. published this content on 09 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 09 March 2017 09:35:14 UTC.

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