Corporate Actions

How corporate actions affect trading, positions and orders in XYZ equity markets.

XYZ equity markets continue trading through corporate actions whenever the event can be reflected through normal pricing and funding. TradeXYZ reviews each event individually and publishes advance notice of any required changes to the affected market.

Trading and settlement

Cash dividends do not ordinarily interrupt trading. Perpetual holders do not receive dividends directly. The dividend's economic effect is reflected in pricing and funding through arbitrage between the perpetual and the underlying shares. Funding payments depend on market conditions; they are not fixed dividend payments.

Stock splits and reverse splits change the share unit that the perpetual tracks. TradeXYZ settles existing positions and reopens the market on the post-split basis. Settlement closes all open positions, realizes their profit or loss and cancels outstanding orders. To re-establish exposure after reopening, traders must open new positions and submit new orders.

Mergers, acquisitions and other events are assessed according to their effect on the underlying shares. Trading generally continues if those shares remain available to trade on the same basis. Otherwise, the XYZ market may require settlement, followed by reopening on revised terms or permanent closure.

Event notices

Each notice specifies the affected market, trading schedule, treatment of positions and orders, settlement pricing and reopening terms where applicable, and any action required of traders.

See Kioxia stock split: settlement and resumption of trading.