1. Dividends:
Clients holding long positions on the applicable share at the ex-div date will receive a dividend in the form of a cash adjustment (a deposit paid into their trading account).
Clients holding short positions on the applicable share at the ex-dividend date will be charged the dividend amount in the form of a cash adjustment (a withdrawal deducted from their trading account).
We reserve the right to increase margin requirements prior to the release of a dividend.
Stocks may be offered as a dividend. The dividend amount will be calculated using the share price to determine the cash adjustment (see Fractional Share Adjustments).
2. Fractional Share Adjustments:
In the event that the corporate action results in a fractional position, the fractional component may be represented as a cash adjustment independent of the handling for the non-fractional position. The adjustment value will equal the fractional position times the adjusted closing price on the day prior to the ex-date.
3. Other Corporate Actions (including, but not limited to Stock Splits and Rights Issue):
An appropriate adjustment to the Client’s position will be made to mirror the economic impact of any corporate action.
4. Earnings Announcements:
We will increase margin requirements and limit maximum exposure on the relevant symbols prior to earnings announcements.
5. De-Listing:
In the event of a share being de-listed, the Client’s position will be closed at the last market price traded.
6. Miscellaneous:
For certain corporate actions not specifically mentioned in this section, including, but not limited to Mergers, Acquisitions (together commonly referred to as ‘M&A’), and Leveraged Buyouts (‘LBOs’), we reserve the right to:
increase margin requirements;
suspend or halt trading in the relevant instrument;
limit the maximum exposure (order size) to the relevant instrument;
close the positions in the event that the relevant instrument is no longer trading on the relevant exchange;
take any other action as we deem necessary in the given circumstances.