Support for SGX India Single Stock Futures

Advisory CA006-18
January 30, 2018
Customer Advisory

As of February 5th, TT will support the newly added SGX India single stock futures (SSF) products. These SSF products are part of the Nifty index on SGX. A unique feature of the SSFs is that they support a corporate action adjustment that is used to maintain the economic value of open positions. Corporate actions that require capital adjustment can include special dividends, issuance of bonus shares, rights issues, stock splits, and\or share consolidation. There are approximately six applicable corporate actions per year, and the exchange is striving to provide at least seven business days notice before an applicable corporate action.

When an applicable corporate action occurs, affected instruments are appended with an “_A1” for the first adjustment, “_A2” for the second adjustment, etc. Customers can expect the following behavior in X_TRADER® and TT®:

X_TRADER®

During a corporate action, the new contract (post-corporate action) is added. Any working orders on the pre-corporate action contracts are removed from the Order Book. If X_TRADER is open during the corporate action, existing orders will appear on the pre-corporate action contracts, and new orders will appear on the new instruments.

After restarting X_TRADER post-corporate action, pre-corporate instruments are removed, and positions are not migrated from the pre-corporate action contracts. If using the Auto-SOD option, trading administrators can adjust positions using manual fils or SOD records if needed.

Note: Risk limits set per product will not need to be modified after a corporate action. However, if you override limits per instrument (which is only available using Account-based risk), you will need to set up additional limits for the new instrument.

TT®

During a corporate action, the new contract (post-corporate action) is added and pre-corporate instruments are removed. Positions are not migrated from the pre-corporate action contracts,  however, if SODs are enabled, trading administrators can adjust positions using manual fils or SOD records if needed. Working orders on the pre-corporate action contracts are removed from the Order Book.

Note: Risk limits set per product will not need to be modified after a corporate action. However, if you set limits per instrument, you will need to set up additionally limits for the new instrument.

Should you have any questions, please contact your local TAM