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Sep 14, 2021

XEUR : Vivdendi Spin Off: Impact on TESX -part I-

Subject to confirmation by STOXX:
EURO STOXX 50 Index Total Return Future (TESX) may require an intra-day adjustment due to the Spin-Off of UMG by Vivendi.
The Spin-Off of UMG by Vivendi may be considred a taxable event by Stoxx. If this is the case then, according to Stoxx rules the EURO STOXX 50 Distribution Points Index (SX5EDD) which is used to
calculate Daily and Accrued Distributions for this product would include the withholding tax amount in its calculation.
Vivendi have announced that the first trading day of UMG shares and also the effective/ex-date is 21 September 2021 according to the prospectus. In such a case - the spin-off would be applied to the SX5EDD on the effective date using an
estimated price for UMG by STOXX. The corresponding level of SX5EDD will be incorporated by Eurex into the preliminary calculation of Daily and Accrued Distributions on the effective date.
Also, according to Stoxx rules, as UMG begins trading on the effective date, the SX5EDD would be re-instated at the end of the day using the actual closing price of UMG.
This will require Eurex to update the Daily and Accrued Distributions intra-day in the T7 trading system based on the re-instated SX5EDD, these updated values will be incroporated in the Daily Settlement TRF Price in index points.
The intention is that this will be completed prior to daily settlement of TESX but participants should note that the preliminary conversion parameters, published that morning, may no longer be correct and should rely on the final conversion
parameters once published. In addition, a short delay to daily settlement of TESX may occur.

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