A member of
Eurex
1. Introduction
The European Corporate Actions Committee (ECAC) defined guidelines for the treatment of corporate actions for derivative contracts when the payment of dividends were postponed or cancelled due to the COVID-19 pandemic. The Member Exchanges of ECAC are: Borsa Italiana, Eurex Deutschland, Euronext, ICE Futures Europe, MEFF (BME Group) and Nasdaq Stockholm.
This circular contains information regarding the dividend treatments for derivatives products at Eurex Deutschland and replaces Eurex Circular 011/21.
2. Required action
No action is required for the participants.
3. Details
Throughout the COVID-19 pandemic, clarity has been crucial with regards to whether derivative contracts would be adjusted for the payment of dividends that were postponed or cancelled.
Eurex Deutschland would like to inform Market Participants that the European Corporate Actions Committee (ECAC) has reconvened to add further clarity to the existing guidelines to assist in determining whether the announcement of dividends will result in an adjustment on derivative contracts throughout 2022:
The above guidelines will be in place until 31 December 2022 only, after which the guidelines for the treatment of dividends on derivative contracts due to the COVID-19 pandemic will cease. Dividends that are announced after this date will be treated in accordance with the relevant Member Exchange’s Corporate Actions Policy. For the avoidance of doubt, dividends announced prior to 31 December 2022 but declared ex-entitlement in 2023 onwards will remain subject to the above guidelines.
The guidelines set out herein are provided for informational purposes only and are intended to harmonize adjustment decisions between Member Exchanges of ECAC. The guidelines shall not supersede the rules as set out in each individual Member Exchange’s Corporate Action Policy, which shall be final in determining the treatments of dividends declared by issuers. The Member Exchanges of ECAC will on a best and endeavor basis continue to harmonize all adjustment decisions, where possible.
Further information
Recipients: | All Trading Participants of Eurex Deutschland and Vendors | |
Target groups: | Front Office/Trading, Middle + Backoffice, IT/System Administration, Auditing/Security Coordination | |
Related circular: | Eurex Circular 011/21 (is being replaced by this Circular 101/21) | |
Contact: | Derivatives Trading Operations, tel. +49-69-211-1 12 10, eurextrading@eurex.com; client.services@eurex.com | |
Web: | www.eurex.com | |
Authorized by: | Randolf Roth |
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