ACTION: IShares MSCI Emerging Markets Index Fund (“EEM”) has announced a 3 for 1 stock split. The ex-distribution date is Thursday, July 24, 2008. The payable date is July 23, 2008. The record date is July 21, 2008.
This action will be coordinated with the Options Clearing Corporation.
CATEGORY: 3 for 1 Stock Split
EQUITY SYMBOL: IShares MSCI Emerging Markets Index Fund (“EEM”)
ONECHICAGO SYMBOL: EEM1C will change to EEM2C. New EEM1C contracts with a contract unit of 1000 shares will be introduced on Friday, July 25, 2008.
CME FUTURES SYMBOL: EE2 for the EEM2C; EEM for the re-listed EEM1C
NUMBER OF CONTRACTS: Unchanged
EFFECTIVE DATE: Effective the opening of business July 24, 2008 and thereafter.
MULTIPLIER: 1000; Unchanged
DELIVERABLE PER CONTRACT: 3000 IShares MSCI Emerging Markets Index Fund (“EEM”) Common Shares for EEM2C
EEM1C will be re-listed for 1000 share deliverable.
APPLICABLE CONTRACT MONTHS: August, September, December 2008 and March 2009
SETTLEMENT PRICES AND POSITIONS: All outstanding EEM1C future contracts outstanding as of Wednesday, July 23, 2008, shall be adjusted to require the per-contract delivery or receipt of 3000 shares of IShares MSCI Emerging Markets (EEM) Common Stock. Settlement prices are unchanged.
The underlying price for the deliverable of EEM2C futures must be calculated, as follows:
EEM2C (Deliverable) = 3 (EEM)
For example, after the contract adjustment, if EEM closes at 33, the EEM2C deliverable price would be calculated as follows:
UWV = 3 (33) = 99.00
NOTES: The forecasted effect of the upcoming corporate event on each clearing firms’ positions can be viewed in infopac in the Corporate Event Initial Forecast Report (ONE712), the Corporate Event Final Forecast Report (ONE713), and the Corporate Event Forecast Audit Report (CPDBU710).
If you have any questions regarding the information provided in the document, please call CME Clearing risk management hotline at (312) 648-3888.