EFTA01353481.txt Text dataset_10 View on DOJ

This document outlines the rules for adjusting options series, specifically addressing cash dividends, stock splits, and stock distributions. It details how the Options Clearing Corporation (OCC) handles adjustments to exercise prices and the number of outstanding options based on specific criteria and circumstances.

Subject

Options Series Adjustment Rules

Sender

—

Recipients

—

Document ID

SDNY_GM_00184051

Date

February 1, 2009

In the case of all other options series. a cash dividend or distribution announced on or after February 1, 2009, will generally be considered "ordinary," regardless of size, if OCC believes that it was declared pursuant to a policy or practice of paying such dividends or distributions on a quer. terty or other regular basis (and no adjustment will nor- mally be made for any cash dividend or distribution that amounts to less than $12.50 per contract).

As a general rule, a 2 for 1 or a 4 for 1 stock split, stock distribution or stock dividend will result In the num- ber of outstanding options being proportionately increased and the exercise price being proportionately decreased.

Financial transactions/money flowLegal matters/litigation

OCC

Tone

Professional

Purpose

To provide rules and guidelines for adjusting options series in response to cash dividends, stock splits, and stock distributions.

Significance

This document outlines the specific rules and procedures for adjusting options contracts, which is crucial for maintaining fairness and accuracy in the options market.

File Name

EFTA01353481.txt

Dataset

dataset_10

Type

Text

Model

gemini-2.0-flash-001

Processed

2026-02-07T18:43:24.897697

DOJ Source

View on DOJ