RE: NVIDIA Corporation (“NVDA/NVDA1C”) 2-for-1 Stock Split Ex-Distribution Date: April 7, 2006
NVIDIA Corporation (“NVDA/NVDA1C”) has announced a 2-for-1 common stock split. The ex-distribution date for the stock split is Friday, April 7, 2006. Opening positions and start-of-day prices for April 7 will be based on final positions and settlement prices from Thursday, April 6, 2006.
NVDA1C Contract Adjustment
Pursuant to The Options Clearing Corp. rules, all outstanding NVDA1C future contracts will be adjusted to reflect the 2-for-1 stock split on April 7. The OCC and CME clearinghouses will adjust the start-of-day position for April 7 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 April 6 settlement price by the split ratio (2) and rounding to the nearest penny. The variation margin will be calculated using April 7 start-of-day prices and April 7 end-of-day settlement prices.
None of the symbols for OneChicago NVDA1C futures contract months will change. The contract unit of each adjusted NVIDIA Corporation futures contract will remain at 100 shares. The contract multiplier will remain at 100 (1.00 will equal $100).
GTC Order Conversion
On April 6, 2006, immediately after the close of business, the OneChicago match engine will convert all resting orders in the NVDA1C 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