Notice no. 21/10 - Nasdaq Dubai - Contract Adjustment For Equity Derivative Futures

23 March 2010
National Bank of Abu Dhabi - Stock Dividend and adjustment implications for Equity Futures Contracts.
NASDAQ Dubai market participants and clearing members are advised that National Bank of Abu Dhabi (NBAD) announced a stock dividend of 10% on 1st February, 2010.
Timetable of Events

Ex day: Wednesday 24^th March 2010

Record Date: Thursday 25^th March 2010

Adjustment Implications

Participants are advised that, NASDAQ Dubai will make an adjustment to its Equity Derivative Futures Contracts over NBAD securities following its announcement to distribute a stock dividend.

Adjustment Method

NASDAQ Dubai will use the Ratio Method to adjust NBAD Futures Contracts to cater for the bonus issue.

The ratio shall be calculated as follows:

Adjustment Ratio = O/N, Where:

O = Cum amount of shares (Old)

N = Ex amount of shares (New)

Adjustment of Contract Lot Size

NASDAQ Dubai will adjust the Lot Size of NBAD Futures Contracts (by dividing the Lot Size by the ratio) and will adjust the Reference Price of each contract (by multiplying the previous day's Daily Settlement Price by the ratio.)

· The adjustment ratio will be rounded, using normal mathematical rounding conventions, to five decimal places.

The general formula expressed this way for the new contract size is:

New Contract Size = (Old Contract Size)/ (New Contract Size)

And the new Reference Price will be calculated as:

New Reference Price = (Old Reference Price) * (Adjustment Ratio)

Effective Date

The adjustment becomes effective on commencement of trading on Wednesday 24th March, 2010.

Actual Calculation