Saxo Capital Markets will as of 1 December 2013, amend the processing of rights issues for CFD positions. The changes mean that rights issues will be handled differently depending on whether the rights are tradeable or non-tradeable.
Rights are granted and booked in accordance with the ratio on the Effective Date (Ex-date) and automatically orders for sale of the rights are placed when the relevant market opens for trading. Following the order execution, proceeds from the sold Rights are booked to the client's account. The client can still participate in the Rights Issue through buying the actual Stock Rights.
For rights issues with non-tradeable rights, the process will remain the same as previously. New CFD positions in the original instrument are granted and booked according to the ratio and the price of the underlying rights issue on the Effective Date (Ex-date), with the value date as payment date.
Australian Listed Events
For certain event types including but not limited to Non Renounceable Rights Distributions, Subscription Offers, Entitlement Offers, Rapid Offers, Retail Offers, Australian Listed Companies have the right to reduce entitlements to zero in certain circumstances and Saxo Capital Markets will therefore only be booking entitlements to clients on the Payment Date.
Note that Since March 2009 it is the policy of the ACSA (Australian Custodial Services Association) not to offer Share Purchase Plans Events (SPP) to underlying beneficial owner clients and thus Saxo Capital Markets cannot participate in such events.