19 Oct 2022
Eurex Clearing
Eurex Clearing Readiness Newsflash | C7: Corporate action spin-off procedure
Dear Clearing Member,
We would like to draw your attention to the new technical process on the Corporate Action’ spin-off. The purpose of this new approach is to speed up the reintroduction of the original equity derivatives of the parent company after a spin-off procedure.
Current approach: The reintroduction of the originally listed stock option/future product starts after completion of the spin-off itself (on Ex-date), so that the originally listed derivatives are available for trading, at the earliest on Ex-date +4.
New approach: The reintroduction of the originally listed derivatives starts before Ex-date with the creation of a temporary product (i.e. product ID, ISIN, Underlying Product ID and Underlying ISIN). After completion of the spin-off process on Ex-date, this dummy product will be reverted to the original product details, making the originally product available for trading on Ex-date +1.
The process for the necessary spin-off adjustments itself (e.g. creation of basket ISINs etc.) remains unchanged.
Testing of this new approach will be offered in the simulation environment with a simulated Spin-off event with ex-date 2 November 2022 with the following details:
Original (prior to ex-date)
Name | Product ID | Product ISIN | Underlying ID | Underlying ISIN | |||||||||
OPT on ABB LTD | ABBN | CH0012221716 | ABBN | CH0012221716 |
Temporary (on ex-date and until ex-date +1)
Name | Product ID | Product ISIN | Underlying ID | Underlying ISIN | |||||||||
OPT on ABB LTD | ABBD | DE000DUMMY27 | ABBD | DE000DUMMY27 |
In this scenario, the new (same as original) Product ID ABBN can be traded as of 3 November 2022 (Exdate +1).
We recommend testing the new approach in the simulation environment. The simulation calendar can be found on the following location: Support > Initiatives & Releases > Simulation calendar
The new process will become effective in production on all necessary spin-off events after 4 November 2022.
If you have questions or comments, please contact your Clearing Key Account Manager or send an e-mail to client.services@eurex.com.
Kind regards,
Your Client Services Team
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Recipients: | All Clearing Members, ISA Direct Clearing Members, Disclosed Direct Clients of Eurex Clearing AG and vendors | |
Target groups: | Front Office/Trading, Middle + Back Office, IT/System Administration | |
Contact: | ||
Web: | Support > Initiatives & Releases > Simulation calendar |
