Launch Announcement for Callable Bull/Bear Contracts ... - HKExnews

More documents

Recommendations

Info

Stock Code 64825 64827 64831 Observation commencement date (for all series) 31 December 2013 Expiry date 20 October 2014 24 November 2014 1 December 2014 Valuation date The trading day (2) immediately preceding the expiry date The trading day (2) immediately preceding the expiry date Board lot 2,000 CBBCs 2,000 CBBCs 2,000 CBBCs Entitlement One unit One unit One unit Number of CBBCs per Entitlement Ten CBBCs Ten CBBCs Ten CBBCs Funding cost per HK$0.115 HK$0.086 HK$0.168 launch date (3) CBBC as of Effective 3.68x 3.68x 3.68x gearing (4) Gearing (4) 3.68x 3.68x 3.68x Premium (4) 12.92% 9.66% 18.78% Liquidity provider HSBC Securities Brokers (Asia) Limited (Broker ID: 9609) Levels 17 and 18, HSBC Main Building, 1 Queen’s Road Central, Hong Kong Tel: (852) 2822 1849 HSBC Securities Brokers (Asia) Limited (Broker ID: 9611) Levels 17 and 18, HSBC Main Building, 1 Queen’s Road Central, Hong Kong Tel: (852) 2822 1849 The trading day (2) immediately preceding the expiry date HSBC Securities Brokers (Asia) Limited (Broker ID: 9615) Levels 17 and 18, HSBC Main Building, 1 Queen’s Road Central, Hong Kong Tel: (852) 2822 1849 (1) The name of the Fund is included here for identification purposes only. “FTSE ® ” is a trade mark of the London Stock Exchange Group companies (“LSEG”) and is used by FTSE International Limited (“FTSE”) under licence . The CBBCs are not sponsored, endorsed, sold, or promoted by FTSE, LSEG or CSOP Asset Management Limited (“CSOP”). FTSE, LSEG and CSOP make no representations or warranties with respect to this document or to the owners of the CBBCs or any member of the public regarding the advisability of investing in the CBBCs. FTSE, LSEG and CSOP have no obligation or liability in connection with the operation, marketing, trading or sale of the CBBCs. (2) “trading day” means a day on which the stock exchange is scheduled to be open for trading for its regular trading sessions. (3) The funding cost is calculated in accordance with the following formula: Funding Cost = Strike price x funding rate x n/365 Number of CBBCs per entitlement Where: (i) (ii) “n” is the number of days remaining to expiration; initially, “n” is the number of days from (and including) the launch date to (and including) the trading day immediately preceding the expiry date; and the funding rate will fluctuate throughout the term of the CBBCs as further described in the relevant supplemental listing document in respect of the CBBCs. As of the launch date, the funding rate (a) in respect of stock code 64825 was 18.12% p.a.; (b) in respect of stock code 64827 was 12.64% p.a.; (c) in respect of stock code 64831 was 18.31% p.a.. (4) The gearing, effective gearing and premium may not be comparable to similar information provided by other issuers of structured products as each issuer may use different pricing models. – 2 –
The CBBCs are in global registered form and exercisable only in the relevant trading board lots specified above. What is a mandatory call event? What happens if a mandatory call event occurs? For a series of bull CBBCs: A mandatory call event occurs if the spot price is at or below the call price at any time during a trading day in the observation period. For a series of bear CBBCs: A mandatory call event occurs if the spot price is at or above the call price at any time during a trading day in the observation period. Spot price means: (1) in respect of a continuous trading session of the stock exchange, the price per unit concluded by means of automatic order matching on the stock exchange as reported in the official real-time dissemination mechanism for the stock exchange during such continuous trading session in accordance with the Rules of the Exchange (the trading rules), excluding direct business (as defined in the trading rules); and (2) in respect of a pre-opening session or a closing auction session (if applicable) of the stock exchange (as the case may be), the final indicative equilibrium price (as defined in the trading rules) of the unit (if any) calculated at the end of the pre-order matching period of such pre-opening session or closing auction session (if applicable) (as the case may be) in accordance with the trading rules, excluding direct business (as defined in the trading rules), subject to such modification and amendment prescribed by the stock exchange from time to time. A trading day means a day on which the stock exchange is scheduled to be open for trading for its regular trading sessions. The observation period means the period from the observation commencement date to the trading day immediately preceding the expiry date (both dates inclusive). Upon the occurrence of a mandatory call event, the CBBCs will terminate automatically and you will receive from us the residual value being an amount calculated by us in accordance with the following formula, less any exercise expenses: For a series of bull CBBCs: Residual value per board lot = Entitlement x (minimum trade price – strike price) x one board lot Number of CBBCs per entitlement If the residual value is a negative amount it shall be deemed to be zero. Minimum trade price means the lowest spot price during the MCE valuation period (being the period commencing from and including the moment upon which the mandatory call event occurs and up to the end of the following trading session on the stock exchange, subject to any potential extension). For a series of bear CBBCs: Residual value per board lot = Entitlement x (strike price – maximum trade price) x one board lot Number of CBBCs per entitlement If the residual value is a negative amount it shall be deemed to be zero. – 3 –
Page 1: This announcement appears for infor
Page 5: An application will be made to the

Launch Announcement for Callable Bull/Bear Contracts ... - HKExnews

Create successful ePaper yourself

Delete template?

Save as template?