Whole Section

  • 18.11 Delivery and Settlement Procedures in the Event of A Distribution

    In the event of a distribution, delivery and settlement procedures following the lodgement of an Exercise Notice with the OCC shall be as follows:—

    • 18.11.1 Bonus Issue — Exercise Notice during "Cum Bonus" Period

      Where the distribution is in the form of a bonus issue and the Exercise Notice is lodged with the OCC on or after the date the Option Series has commenced trading "cum bonus" but before the "ex date", delivery shall be effected of the Standard Quantity of the underlying securities, including the bonus securities. Where the accruing bonus securities have yet to be received from the issuer, delivery of the bonus securities shall be effected as soon as the issued accruing bonus securities are received from the issuer.

    • 18.11.2 Bonus Issue — Exercise Notice before "Cum Bonus" Period

      Where the distribution is in the form of a bonus issue and the Exercise Notice is lodged with the OCC before the period the Option Series has commenced trading "cum bonus" (notwithstanding the seller be advised of the allocation on or after the Option Series commenced trading "cum") delivery shall be effected of the Standard Quantity of the underlying securities only.

    • 18.11.3 Bonus and Rights Issues — Exercise Notices On or After "Ex Date"

      (1) Where the Exercise Notice in respect of an Option Series entitled to a distribution in the form of a bonus or a rights issue is lodged with the OCC on or after the "ex date", the buyer shall not be entitled to the bonus securities or the rights entitlements.
      (2) Delivery and settlement procedures in respect of exercised Options adjusted in accordance with the provisions of Rule 18.10 shall be in accordance with such procedures as SGX-ST or the OCC may from time to time prescribe.
    • 18.11.4 Rights Issue — Exercise Notice During "Cum Rights" Period

      (1) Where the distribution is in the form of a rights issue and the Exercise Notice is lodged with the OCC on or after the date the Option Series has commenced trading "cum rights" delivery shall be effected of the Standard Quantity of the underlying securities and the rights entitlements arising in respect thereof.
      (2) Where the accruing rights entitlements have yet to be received from the issuer, delivery of the rights entitlements shall be effected as soon as the issued accruing rights entitlements are received from the issuer.
    • 18.11.5 Rights Issue — Exercise Notice Before "Cum Rights" Period

      Where the distribution is in the form of a rights issue and the Exercise Notice is lodged with the OCC before the period the Option Series has commenced trading "cum rights" (notwithstanding the seller be advised of the allocation on or after the Option Series commenced trading "cum") delivery shall be effected of the Standard Quantity of the underlying securities only.

    • 18.11.6 Other Distribution

      In the event of any distribution not covered by the foregoing Rules or in the case of any event in respect of which the foregoing Rules apply but is not considered by SGX-ST to be appropriate under the circumstances, SGX-ST or the OCC shall prescribe such delivery and settlement procedures as SGX-ST or the OCC in its sole discretion determines to be fair to the Purchasers or Writers of such Options.

    • 18.11.7 Dividends

      In the event of a dividend declared in respect of any underlying securities:—

      (1) An Exercise Notice lodged with the OCC prior to the "ex dividend date" of dealings in the underlying securities in SGX-ST shall entitle the buyer to the dividend (notwithstanding that the seller is advised of the allocation on or after the "ex dividend date" of dealings in the underlying securities in SGX-ST).
      (2) An Exercise Notice lodged with the OCC on or after the "ex dividend date" of dealings in the underlying securities in SGX-ST shall not entitle the buyer to the dividend.
    • 18.11.8 Seller of Underlying Securities in Short Position

      In lieu of delivery of the underlying securities where the seller is in a short position, the OCC may from time to time:—

      (1) fix cash settlement prices with respect to the underlying securities; or
      (2) instruct CDP to institute buying-in procedures against the seller in accordance with the Clearing Rules.