These Dubai Financial Market (“DFM”) contract adjustment guidelines (the “DFM Futures Adjustment Guidelines” or “Guidelines”) describe the adjustment procedures followed by DFM when a Corporate Action is applied to the Underlying Securities in connection with a DFM Futures contract. The purpose of this document is to outline the rationale and processes that DFM would employ in relation to adjustments for Corporate Actions in respect of Futures traded on DFM.
These Guidelines should be read in conjunction with DFM Module Three: Membership, Trading, and Derivatives Rules (“DFM Module Three”) more specifically Article 16.15 of the same Modules available on DFM’s website.
Terms used in these Guidelines have the meaning specified below or in the Glossary Rules approved by the Market.
Adjustment Ratio (K) is the ratio that will be applied to the Daily Settlement Prices, and contract sizes (where applicable) to adjust contract terms to adjust for Corporate Action.
Corporate Action means a dividend issue, a merger, an acquisition, an issue of Priority Rights, a stock split or any other ...