Terms and Definitions
The ratio of the Theoretical Ex-Price to the Cum Price.
Extraordinary dividend distributions, splits or reverse splits, DR ratio changes, bonus issue, rights issue, de-mergers, conversion of Underlying Instruments and any other Corporate Event entailing the detachment of rights from an Underlying, mergers, takeovers or other corporate actions that might lead to delisting of an Underlying.
Any event that brings material change to an Underlying and results in an adjustment.
The last price of the Underlying on the day before the Ex-Day. If the last price is not available or Turquoise considers that the liquidity in the trading of such Underlying is not sufficient, then the Cum price corresponds to its volume weighted average price (VWAP) for the relevant period. However, under special circumstances a different type of price may be set by taking into account any other objective element which is available. LSE Derivatives will communicate the type of the price used in the calculation of the Adjustment coefficient (K) before the Ex-Day.
The number of Underlying Instruments of each Derivative Contract.
The settlement price calculated by LSE Derivatives.
A Global Depositary Receipt which is listed or traded on the IOB and which corresponds to a share, shares or to a percentage of a share of the Company in question that is publicly traded.
The first day on which a specific Stock or DR can be purchased without participating in the Corporate Action or dividend.
The price of the Underlying (the Spot Price) against which an Option Contract is Exercised.
The strike price of Option Contracts traded on LSE Derivatives Market.
A Contract that confers an obligation to trade the Underlying at a pre-defined price on a pre-defined date in the future.
The amount of a dividend paid by the Depository Bank or the Issuer prior to deductions of any tax (eg Withholding Tax) or any DR Bank fees.
A market of the London Stock Exchange which allows amongst others secondary market trading in Depositary Receipts (DR).
Greenwich Mean Time (GMT) with adherence to British Summer Time (BST). BST begins on the last Sunday of March and ends on the last Sunday of October, during which time clocks are advanced from GMT by one hour (GMT +01:00). Save where this policy states expressly to the contrary, all references to time in the policy are references to London time.
An announcement published on the LSE Derivatives Website; and emailed to relevant recipients' containing important and relevant market updates.
The amount of dividend that is physically paid by the Depository Bank or the Issuer after deductions of any tax (eg Withholding Tax) or any DR Bank fees.
A Contract that confers the right but not the obligation to trade the Underlying at a pre-defined price on a pre-defined date in the future.
Oslo Børs ASA owned by Oslo Børs VPS Holding ASA.
The date established by an Issuer by which a shareholder must officially own Shares in order to be entitled to a Dividend or other such distribution.
A type of security representing ownership in a corporation.
The theoretical price of the Underlying after the Corporate Action, which is used to determine the adjustments to be made.
The theoretical settlement price calculated by LSE Derivatives and used to close and cash settle Option and Future Contracts.
A day other than a Saturday or a Sunday or other holiday on which banks in the Underlying market of a specific Derivative Contract are generally open for business as published in LSE Derivatives trading calendar.
This means index, commodity, stock, share or any other Underlying on which a Derivative Contract is based. Also refers to a Stock on which a DR is issued by a Depository Bank;
Volume Weighted Average Price. The following rules apply:
(i) The VWAP is calculated by Turquoise and shall be the total turnover in traded currency of the Underlying, divided by the number of Underlying Instruments bought and sold during the applicable time period.
(ii) The VWAP shall be determined by reference to all electronically matched trades automatically executed on the Primary market which the Underlying trades, ignoring any off-order book transactions.
(iii) The time period applied for the purposes of determining the VWAP for an Underlying instrument shall normally be the entire Trading Day where applicable prior to the Ex-Day.
(iv) The time period may be extended to cover a greater number of trading days where, in LSE Derivatives discretion, it is necessary in order to provide a more equitable average calculation. If the VWAP is calculated on the Trading Day prior to the Ex-Day, extension of the time period shall only cover Trading Days prior to the Ex-Day. If the VWAP is calculated on the Ex-Day, extension of the time period shall only cover Trading Days following the Ex-Day.
(v) If there is no transaction in the Underlying instrument in question during the said time period, the VWAP shall instead be calculated on the closing bid prices for the same period.
The tax deductible on a dividend.