Dividend adjustments
Equity CFD Trades
A dividend adjustment is credited to long CFD positions and
debited from short CFD positions held at the close of business on
the day before the ex-dividend date. Payment is credited or debited
to your account over the ex-dividend date.
(Currently, UK long CFD positions receive an adjustment of 90%
of the gross dividend, UK short CFD positions pay an adjustment of
90% of the gross dividend. US long CFD positions receive an
adjustment of 85% of the gross dividend, US short CFD positions pay
100% of the gross dividend. For European equity CFDs please call
the dealing desk for further details).
Stock Index CFD Trades
FTSE 100 CFDs will be subject to a dividend adjustment for
positions held at the close of business on the day before an
ex-dividend date (usually, this applies to positions held at close
of business on a Tuesday). This is to reflect the fact that the
FTSE 100 Index will open on a lower level on this date as the
constituent members go ex-dividend.
A dividend adjustment is credited to long CFD positions and
debited from short CFD positions held at the close of business on
the day before the ex-dividend date. Payment is credited or debited
to your account over the ex-dividend date.
Sector CFD Trades
Sector CFDs will b e subject to dividend adjustments for
positions held at the close of business on the day before an
ex-dividend date (usually, this applies to positions held at close
of business on a Tuesday). This is to reflect the fact that the
Sector CFDs will open on a lower level on this date as the
constituent members go ex-dividend.
A dividend adjustment is credited to long CFD positions and
debited from short CFD positions held at the close of business on
the day before the ex-dividend date. Payment is credited or debited
to your account over the ex-dividend date.
Corporate Actions
Equity CFD Trades
In the event of a corporate action (e.g. rights issue, scrip
issue, special dividend) City Index will adjust open CFD positions
by the appropriate amount to compensate for such action and make
every effort to advise the client of this.
Adjustments will apply to open CFD positions held at the close
of business on the preceding business day to the "ex-event" date
and will usually be booked to your account around this date.
Clients with long CFD positions may sometimes have the option
whether they wish to participate in a corporate action such as a
rights issue or entitlement. Clients with short CFD positions are
not given the opportunity to decide and may be assigned a short
position if the long holders elect to take up the corporate
action.
For example: In the case of a "rights issue", the client may be
given a CFD position in the "rights" which is proportional to his
position in the underlying equity CFD. This may be closed out by
the client or eventually converted into a new position in the
underlying equity CFD at the rights price.
In the event that City Index is unable to contact a client to
whom this applies, City Index may, at its discretion, take up the
position, on behalf of the client, if this is advantageous for the
client to do so, and subsequently close this position out at the
then market price.
Sector CFD Trades
In the event of a corporate action, City Index may, if
appropriate, adjust open sector CFDs, to take account of any change
to the underlying sector quoted price.