notices

Please be informed that with effect from 23 December 2015, SGX will inject a theoretical price for new trading counters created for share consolidations and share splits corporate actions. This is to ensure that the existing trading safeguards will apply to new trading counters arising from such corporate actions.

The theoretical price will be derived from the last traded price of the old trading counter adjusted for the consolidation or split ratio and any cash distribution effective on the same date. In cases where SGX deems this inappropriate, for example if multiple corporate actions are effective on the same date, it may choose an alternative means of determination, and notify accordingly.

The theoretical price will be used as the reference price to determine:
I. forced order range;
II. the application of the dynamic circuit breakers and their price band; and
III. error trade no-cancellation range;

When the new trading counter is made available for trading. The reference price for forced order range, dynamic circuit breakers and error trade no-cancellation range will be updated accordingly when a traded price becomes available in the new trading counter, in line with current processes.

Upon execution of the first trade in the new counter, the price change displayed on SGX.com (Market Information Page) for that day will be calculated based on the difference between theoretical price and last traded price.

In addition, SGX will also display cum-entitlement (CE) and ex-entitlement (XE) corporate action indicators for stocks undergoing share consolidation or share split corporate actions. This will better alert market participants that a stock is about to or have just undergone a corporate action, and prompt them to find out more on the details of the corporate action event.

Clients are reminded to take care when executing orders in stocks which are undergoing share consolidation and splits.

Please refer to the illustration in the appendix on how the above mentioned changes will be effected.

Details on corporate actions can be found in the company announcements page or the corporate action page on SGX.com.