• Corporate Events: Direxion Daily Financial Bear 3X Shares (FAZ)

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      • Clearing Member Firms
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      • CME Clearing
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      • 09-295
      • Notice Date
      • 08 July 2009
      • Effective Date
      • 09 July 2009
      ACTION:                                                           Direxion Daily Financial Bear 3X Shares (“FAZ”) has announced a 1-for-10 reverse stock split. As a result of the reverse stock split, each FAZ Share will be converted into the right to receive .1 (New) Direxion Daily Financial Bear 3X Share. The reverse stock split will become effective prior to the open of business on July 9, 2009.
                                                                              This action will be coordinated with the Options Clearing Corporation.
      CATEGORY:                                                     1 for 10 Reverse Stock Split
      EQUITY SYMBOL:                                            Direxion Daily Financial Bear 3X Shares (“FAZ”)
      ONECHICAGO SYMBOL:                                   FAZ1C will change to FAZ2C. A new FAZ1C with a contract unit of 100 shares will be introduced on Friday, July 10, 2009.         
      CME FUTURES SYMBOL:                                 FAZ for the FAZ1C; FA8 for the FAZ2C
      NUMBER OF CONTRACTS:                               Unchanged
      EFFECTIVE DATE:                                           July 9, 2009
      MULTIPLIER:                                                   100; Unchanged
      DELIVERABLE PER CONTRACT:                      FAZ2C: 10 Direxion Daily Financial Bear 3X Shares (“FAZ”)
      FAZ1C: Will be re-listed with a 100 share deliverable.
      APPLICABLE CONTRACT MONTHS:                 July, August, September, December 2009
      SETTLEMENT PRICES AND POSITIONS:         The underlying price for the deliverable futures must be calculated, as follows:
      FAZ2C = .10 (FAZ)
      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.