18 Sep 2023
Eurex Clearing
Eurex Clearing Readiness Newsflash | C7: Corporate action spin-off procedure
Dear Client,
Following Eurex Clearing Readiness Newsflash from 19 October 2022, we would like to draw your attention to the technical process on the corporate action spin-off. The purpose of this new approach is to speed up the re-introduction of the original equity derivatives of the parent company after a spin-off procedure.
Former approach: The re-introduction of the originally listed stock option/future product starts after completion of the spin-off itself (on ex-date), so the originally listed derivatives are available for trading on ex-date +4 at the earliest.
New approach: The re-introduction of the originally listed derivatives starts before ex-date with the creation of a temporary product (i.e. Product ID and Product ISIN). After completion of the spin-off process on ex-date, this dummy product will be reverted to the original product details, making the original product available for trading on ex-date +1.
Please note that the dummy product as such will never be traded and will not be available for reporting (EMIR etc.)
As of the first trading day, the product will be available for reporting with changed Product ID/ISIN. The corporate action process for the necessary spin-off adjustments itself (e.g. creation of basket ISINs etc.) remains unchanged.
The new process is already in place in production on all necessary spin-off events since it became effective on 4 November 2022.
A focus day for testing this approach will be offered in the simulation environment with a simulated spin-off event with ex-date 21 September 2023 with the following details:
Original product (prior to ex-date)
Name | Product ID | Product ISIN | Underlying ID | Underlying ISIN | ||||
OPT on UNILEVER | UNI | NL0000009355 | UNI | NL0000009355 |
Basket product (from ex-date onwards)
Name | Product ID | Product ISIN | Underlying ID | Underlying ISIN | |||
OPT on UNILEVER BASKET | UNIB | DE000A3C9H86 | UNIB | DE000A3C9H86 |
Temporary dummy product (up until ex-date)
Name | Product ID | Product ISIN | Underlying ID | Underlying ISIN | ||||
OPT on UNILEVER | UNID | DEDUMMY12675 | UNI | NL0000009355 |
New product (ex-date +1 / first trading day)
Name | Product ID | Product ISIN | Underlying ID | Underlying ISIN | ||||
OPT on UNILEVER | UNI | NL0000009355 | UNI | NL0000009355 |
In this scenario, the new Product ID (same as the original Product ID) “UNI” can be traded as of 22 September 2023 (ex-date +1).
We recommend testing the new approach in the simulation environment to assure a smooth transition. Please ensure to have the relevant positions in the simulation environment in advance. The simulation calendar can be found on the Eurex Clearing website on the following location: Support > Initiatives & Releases > Simulation calendar.
If you have any further questions or comments, please do not hesitate to contact your Key Account Manager or send an e-mail to client.services@eurex.com.
Kind regards,
Your Client Services Team
Meet the new clearing admission service C7 CAS (Client Administration Service)!
Recipients: | All Clearing Members, ISA Direct Clearing Members, Disclosed Direct Clients of Eurex Clearing AG and vendors | |
Target groups: | Front Office/Trading, Middle + Back Office, IT/System Administration | |
Contact: | ||
Related Newsflash: | Eurex Clearing Readiness Newsflash from 19 October 2022 | |
Web: | Support > Initiatives & Releases > Simulation calendar |
