Corporate Actions

When the stock behind a single-stock perp pays a dividend, splits, merges or delists, the exchange may adjust the number of contracts, the Daily Settlement Price, the underlying security, or any of them (Rule 14.26(c)). The goal is to keep open positions economically equivalent before and after the event, as far as practicable. The Chief Regulatory Officer (CRO) decides whether and how to adjust (Rule 14.26(b)). Corporate actions are covered in Part VII of Chapter 14 of the rulebook, and delisting also in Rules 14.6 and 14.7. The last column of the table below cites the rule for each action.

Market version

market_version tells you whether a price or an order comes from before or after an adjustment. A market starts at version 1. Adjustments under Rule 14.28 (stock splits, stock dividends and rights offerings) are applied to open positions in place. Positions are not closed and reopened, and the version is incremented (Rule 14.28(d)). The “Is there a new version?” column below lists the actions that increment it.

Adjustments by corporate action

The Simple description column describes each action in general terms, as it applies to holders of the underlying stock. What the exchange does to the perp is in the other columns.

Corporate action	Simple description	Perp price / Daily Settlement Price (DSP) Change	Number of perp contracts after the corp action	Cash / funding treatment	Timing of Corp Adjustment	Is there a new version?	Reference to the Klear/KEX Filed rule
Ordinary cash dividend	Company pays its usual cash dividend	Spot/perp expected to fall by dividend amount by ex-date; no mechanical DSP adjustment	Unchanged	Economics transferred through funding; no separate dividend payment	No mechanical corporate action adjustment; dividend economics are reflected though normal funding at daily settlement times	No change	14.27(a),(b),(f)
Special / extraordinary dividend	One-off or unusually large distribution	May reduce DSP by distribution value, or use another approved method	Normally unchanged	Per-contract cash transfer or CRO-approved equivalent; avoid double counting	Scheduled adjustment at Daily Settlement Time on the last cum-trading day, where applicable; payment may be delayed if the distribution value is not yet determinable.	Not mandated by rule; follows the approved adjustment method and operational policy.	14.27(c),(d)
Forward stock split	One share becomes multiple shares, e.g. 4-for-1	Price ÷ 4	Contracts × 4	Normally none; possible rounding compensation	After last cum-day settlement, before ex-date	Increase	14.28(a),(c),(d)
Reverse stock split	Multiple shares combine into fewer shares, e.g. 1-for-10	Price × 10	Contracts ÷ 10	Compensation possible for rounding differences	After last cum-day settlement, before ex-date	Increase	14.28(a),(c),(d)
Stock dividend / bonus issue	Company distributes additional shares of itself	Price falls proportionately	Contracts increase proportionately	Normally none; rounding compensation possible	After last cum-day settlement, before ex-date	Increase	14.28(a),(d)
Optional / scrip dividend	Shareholders of the underlying stock may elect to receive cash or additional shares under the issuer’s dividend terms. The election is a right of the stock’s shareholders and does not apply to the perp.	Depends on actual distribution method chosen and on Chief Regulatory Officer’s (CRO) affirmation	Usually unchanged for cash; quantity may increase when there is a qualifying stock distribution	Funding, cash, or proportional adjustment as appropriate	Generally processed after last cum-day settlement where an adjustment is required, with effect on ex-date; subject to event terms and CRO determination.	Depends on method	14.26–14.28
Spin-off / demerger	Company separates a business and distributes shares in a new company	Underlying typically drops by distributed business’s value; DSP may be adjusted	Normally unchanged	Cash-equivalent transfer for distributed property, DSP reduction, or another CRO-approved method preserving economic equivalence; no automatic delivery of spun-off shares.	After last cum-day settlement, before ex-date; cash settlement may follow later when the distributed property’s value becomes determinable, under the announced methodology.	Not mandated	14.27(c)
Rights offering	Existing shareholders receive rights to acquire additional shares, generally at a pre-defined price	Adjustment may be needed to preserve value; DSP determined by the rights’ terms	Unchanged if compensated via cash; otherwise price/quantity adjusted to the rights’ terms	Rights value compensated via an approved adjustment; Cash compensation may be one approach, subject to CRO approval	After last cum-day settlement, before ex-date	Incremented if adjusted under Rule 14.28	14.28(b)–(d)
Tender / exchange offer	Buyer offers to purchase shareholders’ stock	No mechanical adjustment merely for offer	Unchanged	None ordinarily	On offer completion, reassess if merger follows	No change initially	14.29(a)
Cash merger / acquisition	Target company acquired for a fixed cash price	Final price ordinarily equals cash consideration	Target perp positions closed to zero	Final cash settlement	Upon effective acquisition / final settlement	Contract terminates	14.29(b)
Stock-for-stock merger	Target acquired in exchange for acquirer’s shares	Final price based on value of acquirer shares received	Normally target positions closed; CRO may convert into acquirer perp	Final settlement or conversion with VM adjustments	Upon completion / final settlement	Target perp terminates upon final settlement; alternatively, positions may be converted into an existing listed acquirer perp under CRO direction.	14.29(c)
Mixed cash-and-stock merger	Target shareholders receive cash plus acquirer shares	Economic reference is cash plus value of shares received	Normally close target; alternative subject to CRO determination	Final cash settlement or approved equivalent	Completion / final settlement	Generally terminates	14.26, 14.29
Ticker / name / ISIN / CUSIP change	Company changes identifier without changing ownership rights	Unchanged	Unchanged	None	When identifier change takes effect	No version bump required	14.29(d)
Share buyback / capital issuance	Company repurchases stock or issues new capital	Market determines impact; no mechanical DSP adjustment	Unchanged	None	No adjustment event ordinarily	No change	14.29(d)
Recapitalization / reclassification	Company changes capital or share structure	Case-specific if economic rights change	Case-specific	May require adjustment or settlement	Effective event date	Depends on adjustment	14.26, 14.29
Delisting / bankruptcy / liquidation	Underlying ceases trading or issuer fails	Final Settlement Price (FSP) is determined under applicable rules; otherwise use the cash open price on primary exchange, or approved fallback.	Positions closed on final settlement	Final cash settlement at FSP; bankruptcy may not automatically mean zero settlement.	Delisting / accelerated settlement timetable	Contract terminates	14.6, 14.7, 14.30

Delisting / bankruptcy / liquidation: the exchange gives at least two business days’ notice before an accelerated final settlement, unless emergency circumstances require faster action (Rule 14.30(c)). Trading may be halted before then (Rule 14.32(a)). If the underlying is delisted from its primary listing exchange, or the issuer enters bankruptcy, liquidation or insolvency proceedings, trading halts once the exchange confirms the event and does not resume. Final settlement follows within five business days (Rules 14.6(c) and 14.7(b)).

GET /margin/corporate_actions returns scheduled notices and notices updated in the last seven days.

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Market version

Adjustments by corporate action

​Market version

​Adjustments by corporate action

Market version

Adjustments by corporate action