Stock CFDs, ETFs Corporate Actions.
Any company or its share price may be affected by Corporate action. Such events include: rights issue, stock splits, reverse stock splits, mergers, acquisitions, spin-offs and others.
Since the stock CFD or ETF is closely connected to the price movement of the underlying asset, it will also be affected by the corporate action on the underlying asset. Dukascopy Bank will determine the appropriate measures in a commercially reasonable manner to account for the corporate action’s implication. This may include adjustment of positions and prices in order to preserve the economic equivalent of stock CFD or ETF, or to reflect the effect of the event on the relevant underlying asset.
The economic effect on stock CFD or ETF holders will replicate the effects of the corporate action for both long and short positions of the underlying asset.
Due to restrictions implemented by regulatory bodies, stock exchanges or liquidity, shorting of a particular stock CFD or ETF may be restricted.
Clients are solely responsible for checking any available information on corporate actions that may affect their stock CFD or ETF positions and pending orders. Dukascopy Bank has no obligation to proactively contact clients holding positions, that may be affected by corporate action.
Please contact your Account Manager or our Support Desk if you need more information on how a particular corporate action may affect your stock CFD or ETF position.
Dukascopy Bank reserves the right to make any correction or adjustment to any type of past corporate action as needed.
Split.
Split or reverse split - a publicly traded company increases or decreases the number of its shares.
The split ratio corresponds to the number of shares to hold after the split and per each share owned before of the split.
Positions that remain opened on settlement prior to the ex-date will be subject to the split or reverse split.
The new position on ex-date must not contain fractions. The position amount after the split/reverse split is rounded down and the fractions amount will be closed automatically.
Split example.
AAPL.US/USD declares a split of 1 share to 4 shares with ex-date 31.08.2022 (Monday). The split ratio is equal to 4.
A client holds 5 contracts of AAPL.US/USD with Rollover Close price of 500 USD on the settlement of 28.08.2022 (Friday). The value of the position is equal to 2’500 USD.
On 31.08.2022 (Monday), before the market opening the split will be applied to the client’s position. The amount of the Rollover Open order will change from 5 contracts to 20 contracts. The price of the Rollover Open order will change from 500 USD to 125 USD per share. Thus, the position value will remain the same: 20 AAPL.US/USD x 125 USD = 2’500 USD.
Reverse split example.
GE.US/USD declares a reverse split of 8 shares to 1 share with ex-date 02.08.2021 (Monday). The reverse split ratio is equal to 0.125.
A client holds 9 contracts of GE.US/USD with Rollover Close price of 12.94 USD, on the settlement of 30.07.2021 (Friday). The value of the position is equal to 116.46 USD.
On 30.07.2021, before the market opening the reverse split will be applied to the client’s position. The amount of the Rollover Open order will change from 9 contracts to 1.125 contracts. The price of the Rollover Open order will change from 12.94 USD to 103.52 USD per share. Thus, the position value will remain the same: 1.125 GE.US/USD x 103.52 USD = 116.46 USD.
The position amount of 1.125 GE.US/USD will be rounded down and the fraction of 0.125 will be closed at 103.52.
Split date Instrumento Split ratio 27.02.2023 9983.JP/JPY 3 for 1 27.02.2023 9983.JP/JPY 3 for 1 30.11.2022 TECH.US/USD 4 for 1 04.11.2022 CPRT.US/USD 2 for 1 29.09.2022 8766.JP/JPY 3 for 1 29.09.2022 7974.JP/JPY 10 for 1 26.09.2022 NLY.US/USD 1 for 4 26.09.2022 BMPS.IT/EUR 1 for 100 20.09.2022 SDR.GB/GBX 5 for 1 14.09.2022 PANW.US/USD 3 for 1 30.08.2022 RBS.GB/GBX 13 for 14 25.08.2022 TSLA.US/USD 3 for 1 18.07.2022 GOOG.US/USD 20 for 1 18.07.2022 GOOGL.US/USD 20 for 1 23.06.2022 FTNT.US/USD 5 for 1 13.06.2022 DXCM.US/USD 4 for 1 13.06.2022 SPM.IT/EUR 1 for 10 06.06.2022 AMZN.US/USD 20 for 1 06.06.2022 TIS.IT/EUR 1 for 100 13.05.2022 ATCOA.SE/SEK 4 for 1 03.05.2022 TATE.GB/GBX 6 for 7 13.10.2021 MCHP.US/USD 2 for 1 5.10.2021 ISRG.US/USD 3 for 1 29.09.2021 6762.JP/JPY 3 for 1 29.09.2021 7203.JP/JPY 5 for 1 02.08.2021 GE.US/USD 1 for 8 20.07.2021 NVDA.US/USD 4 for 1 19.05.2021 INVEB.SE/SEK 4 for 1 07.05.2021 SWMA.SE/SEK 10 for 1 27.04.2021 VWS.DK/DKK 5 for 1 23.04.2021 VXX.US/USD 1 for 4 31.08.2022 AAPL.US/USD 4 for 1.
Spinoff.
Spinoff - a publicly traded company expropriates part of its shares for creation of an independent company. After the spinoff, two companies exist, each with its own stock.
The spinoff ratio corresponds to the number of new company's shares that are being issued for one original company share.
Positions that remain open on settlement prior to the ex-date will be subject to the spinoff.
Dukascopy opens new positions for the new instrument by applying the spinoff ratio.
If the new company is not traded at Dukascopy, the position value of the new company's shares will be debited/credited from/to the client's account. The position value of the new company's shares is calculated using the 1st price of the stock on the spinoff ex-date. Accounts holding long positions will be credited; accounts with short positions will be debited.
Ex-date Instrumento New Spin-off ratio 17.01.2023 JEF.US/USD Vitesse Energy Inc 0.117693 for 1 05.01.2023 0700.HK/HKD Meituan 0.1 for 1 04.01.2023 GE.US/USD GE HealthCare Technologies Inc 0.3333333 for 1 15.12.2022 FBHS.US/USD MBC-W US 1 for 1 01.12.2022 FNF.US/USD FG-W 0.068 for 1 01.11.2022 XPO.US/USD RXO Inc 1 for 1 03.10.2022 ABBN.CH/CHF ACLN SW 0.05 for 1 26.08.2022 SAND.SE/SEK Sandvik Materials Technology AB 0.2 for 1 18.07.2022 GSK.GB/GBX Haleon PLC 1 for 1 01.07.2022 EHC.US/USD EHAB US 0.5 for 1 06.05.2022 SAN.FR/EUR Euroapi SASU 0.04347826 for 1 01.03.2022 ZBH.US/USD ZIMVV US 0.1 for 1 02.02.2022 EXC.US/USD CEGW US 0.3333333 for 1 20.01.2022 0700.HK/HKD 9618 HK 0.04761905 for 1 10.12.2021 DAI.DE/EUR DTG GR 0.5 for 1 04.11.2021 IBM.US/USD KD-W US 0.2 for 1 21.09.2021 VIV.FR/EUR UMG NA 1 for 1 16.09.2021 CON.DE/EUR VTSC GR 0.2 for 1 07.06.2021 AAL.GB/GBX TGA LN 0.1 for 1 02.06.2021 MRK.US/USD OGN-W US 1 for 0.1 28.04.2021 TPK.GB/GBX WIX LN 1 for 1 19.03.2022 FOXA.US/USD 21CF 1 per 3.
Delist.
Ex-date Instrumento 19.01.2023 AVV.GB/GBX 23.12.2022 VIFN.CH/CHF 23.12.2022 SWMA.SE/SEK 23.12.2022 ABMD.US/USD 09.12.2022 ATL.IT/EUR 23.11.2022 CLR.US/USD 22.11.2022 ZEN.US/USD 3.11.2022 BMPS.IT/EUR 28.10.2022 TWTR.US/USD 19.10.2022 Y.US/USD 19.10.2022 AVLR.US/USD 12.10.2022 NLSN.US/USD 03.10.2022 CTXS.US/USD 03.10.2022 CHNG.US/YSD 03.10.2022 DRE.US/USD 14.09.2022 MGGT.GB/GBX 12.09.2022 AVST.GB/GBX 12.09.2022 MNDT.US/USD 02.09.2022 COHR.US/USD 05.07.2022 2833.HK/HKD 22.06.2022 PLAN.US/USD 08.06.2022 CERN.US/USD 25.04.2022 REN.NL/EUR 14.02.2022 XLNX.US/USD 11.08.2021 AGK.GB/GBX 06.05.2021 GFS.GB/GBX 02.06.2021 RSA.GB/GBX 22.07.2021 ALXN.US/USD 06.07.2021 DNB.NO/NOK 10.05.2021 DIA.ES/EUR 29.05.2022 GTO.NL/EUR.
Merge and acquisition.
Ex-date 1 st Instrumento 2 nd Instrumento 3.04.2022 RTN.US/USD UTX.US/USD.
Rights offering.
Rights offering - a publicly traded company initiates the purchase of additionally released stocks with discount.
The adjustment factor corresponds to the ratio of the post-Rights offering price to the pre-Rights offering price.
Dukascopy will adjust the clients’ position amount and price according to the adjustment factor before market opening for any position left open on settlement prior to the ex-date.
The new position on ex-date must not contain fractions. Therefore, the position amount after the rights offering is rounded down and the fractions amount will be closed automatically.
Rights offering example.
VNA.DE/EUR declares a rights offering with ex-date 24.11.2021 (Wednesday).
23.11.2021 after market closure, the adjustment factor is defined and is equal to 0.937447.
A client holds 21 contracts of VNA.DE/EUR with Rollover Close price of 53.0380 EUR on the settlement of 23.11.2021 (Tuesday). The value of the position is equal to 1’113.798 EUR.
On 24.11.2021 (Wednesday), before the market opening the rights offering will be applied to the client’s position. The price of the Rollover Open order will change from 53.038 EUR to 49.720313 EUR per share (53.038 x 0.937447=49.720313).
The amount of the Rollover Open order will change from 21 contracts to 22.401266 contracts (21/0.937447=22.401266). Thus, the position value will remain the same: 22.401266 VNA.DE/EUR x 49.720313 EUR = 1’113.798 EUR.
The fraction of 0.401266 will be closed automatically at 53.038 EUR.
* Swaps are omitted in the examples for simplicity.
Ex-date Instrumento / Right To Purchase Rights ratio Subscription Price Adjustment factor 28.11.2022 CSGN.CH/CHF / CSGN.CH/CHF 2 per 7 2.52 0.946554 01.11.2022 MBTN.CH/CHF / MBTN.SW/CHF 7 per 20 0.267 N/A 17.10.2022 BMPSAA.IM/EUR / BMPSAA.IM/EUR 1 per 1 2 1 19.09.2022 SECUB.SE/SEK / SECUB.SE/SEK 4 per 7 46 0.833619 25.05.2022 AF.FR/EUR / AF.FR/EUR 3 per 1 0.17 0.504348 21.03.2022 EDF.FR/EUR / EDF.FR/EUR 2 per 13 6.35 0.95611 24.11.2021 VNA.DE/EUR / VNA.DE/EUR 7 per 20 40 0.937447 8.10.2021 TUI1.DE/EUR / TUI1.DE/EUR 10 per 21 2.15 0.848244 22.09.2021 LHA.DE/EUR / LHA.DE/EUR 1 per 1 3.58 0.71368 4.06.2021 VRK.FR/EUR / VRK.FR/EUR 37 per 8 5.66 N/A 16.11.2022 SAN.ES/EUR / SAN.ES/EUR 1 per 23 0 N/A.
Stock Dividend.
Stock Dividend − dividend that a company pay to shareholders and is made in stock.
Ex-date Instrumento Security given Adjustment factor 06.06.2022 AI.FR/EUR AI.FR/EUR 1.1 19.04.2022 BBD.US/USD BBD.US/USD 1.1.