RE: The Procter & Gamble Company (“PG/PG1C”) 2-for-1 Stock Split Ex-Distribution Date: June 21, 2004
The Procter & Gamble Company (“PG/PG1C”) has announced a 2-for-1 common stock split. The ex-distribution date for the stock split is Monday, June 21, 2004. Opening positions and start-of-day prices for June 21 will be based on final positions and settlement prices from Friday, June 18, 2004.
PG1C Contract Adjustment
Pursuant to The Options Clearing Corporation rules, all outstanding PG1C future contracts will be adjusted to reflect the 2-for-1 stock split on June 21. The OCC and CME clearinghouses will adjust the start-of-day positions for June 21 by multiplying each open contract’s position by the split ratio (2). Additionally, the OCC and CME will adjust the June 21 start-of-day price for the adjusted contracts by dividing the June 18 settlement price by the split ratio (2) and rounding to the nearest penny. The variation margin will be calculated using June 21 start-of-day prices and June 21 end-of-day settlement prices.
None of the symbols for OneChicago PG contract months will change. The contract unit of each adjusted The Procter & Gamble Company futures contract will remain at 100 shares. The contract multiplier will remain at 100 (1.00 will equal $100).
GTC Order Conversion
On June 18, 2004, immediately after the close of business, the OneChicago match engine will convert all resting orders in the PG1C order books. Resting GTC orders will be adjusted for the start of the next trading session by multiplying the order quantity by the split ratio (2) and dividing the order price by the split ratio (2). Member firms must determine if the new GTC order terms meet their clients’ objectives and cancel or cancel/replace orders as appropriate.
Questions regarding this memo can be addressed to The Options Clearing Corporation at 800-621-6072. This and all other OneChicago corporate event circulars can be accessed from the OneChicago Web site at www.OneChicago.com PDF