Margin requirements for shares, with an upcoming earnings report and/or corporate and/or other action (collectively, the ‘corporate event’), may increase up to no more than 5 times the normal percentage, 5 business days prior to the corporate event, and may remain in effect after the corporate event at FxPro’s sole discretion.
During the affected period, new margin requirements will apply for all existing and new trades. FxPro clients remain fully responsible for monitoring both the required margin of their account(s) and free margin prior, during and post the affected period. As a result of the above, FxPro clients understand and accept that this may result in their account(s) incurring a margin call and/or stop out.
ℹ Note: Stock may be offered as a dividend, the dividend amount should be calculated using the share price to determine the cash adjustment (see fractional share adjustments).
In the event the corporate action results in a fractional position, the fractional component may be represented as a cash adjustment independent of the handling for the non-fractional position. The adjustment value will equal the fractional position times the adjusted closing price on the day prior to the ex-date.
As there is no impact on the company’s market capitalisation the action carried out is to reflect the clients existing share position using the split ratio announced.
Again there is no impact on the company’s market cap and the clients positions need to be amended to reflect the new share price.
Results in one of the following: Delivery of right security, issuance of CFD on the right or cash adjustment.