Q&A

  Q: Is Turquoise Derivatives Corporate   Actions policy in line with other European derivatives exchanges Corporate   Actions policies?
 
  A: Yes. Turquoise Derivatives has a   dedicated Corporate Action team, which works with other European exchanges to   ensure its policy is following the highest international markets standards.

  Q: Would Turquoise Derivatives adjust   contracts if a company pays interim dividends?
 
  A: In case of interim, part of the   dividend of year N is paid with record date XX and part is paid with record   date YY, with YY later than XX. The second payment is not considered as an   additional payment as it is just the second part of year's N dividend. Hence   interim dividends will not be considered as extraordinary and no adjustment   will be done.

  Q: Are contracts adjusted in the case of a   share buyback, or in the case of a partial public tender offer?
 
  A: In the case of a buyback, shares will   be bought at the market price and then destroyed - hence, contracts will not   be adjusted. In case of a partial public tender offer, if the last price of   the shares is less then the tender offer price on the last day of acceptance,   derivatives contracts will be adjusted according to the following formula:
 
  PEX = [Pcum – (% of shares to be   purchased) * ( tender offer price )]/(1–(% of shares to be   purchased))

  Q: What happens in case of cancellation of   Treasury shares by a company?
 
  A: There would typically be no contract   adjustments on derivatives contracts.