RE: ConocoPhillips (“COP/COP1C”) 2-for-1 Stock Split Ex-Distribution Date: June 2, 2005
ConocoPhillips (“COP/COP1C”) has announced a 2-for-1 common stock split. The ex-distribution date for the stock split is Thursday, June 2, 2005. Opening positions and start-of-day prices for June 2 will be based on final positions and settlement prices from Wednesday, June 1, 2005.
COP1C Contract Adjustment
Pursuant to The Options Clearing Corp. rules, all outstanding COP1C future contracts will be adjusted to reflect the 2-for-1 stock split on June 2. The OCC and CME clearinghouses will adjust the start-of-day position for June 2 by multiplying each open contract’s position by the split ratio (2). Additionally, the OCC and CME will adjust the start-of-day price for the adjusted contracts by dividing the June 1 settlement price by the split ratio (2) and rounding to the nearest penny. The variation margin will be calculated using June 2 start-of-day prices and June 2 end-of-day settlement prices.
None of the symbols for OneChicago COP1C futures contract months will change. The contract unit of each adjusted ConocoPhillips futures contract will remain at 100 shares. The contract multiplier will remain at 100 (1.00 will equal $100).
GTC Order Conversion
On June 1, 2005, immediately after the close of business, the OneChicago match engine will convert all resting orders in the COP1C 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