T+1 shift sparks dividend chaos in HK structured products - Risk.net (2024)

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T+1 shift sparks dividend chaos in HK structured products - Risk.net (2)

Products staying on T+2 leave providers scrambling to deal with ex-dividend dates caught inbetween

T+1 shift sparks dividend chaos in HK structured products - Risk.net (3)
    • By Chris Davis, Wei-Shen Wong and Jiefei Liu
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The impending transition of the US equities market to T+1 settlement is causing panic among Hong Kong providers of accumulators and decumulators, who are grappling with the question of how to handle dividends that are paid within the products’ two-day settlement cycle.

A number of issuers won’t be ready to trade on a T+1 basis from the May 28 deadline and will continue on a T+2 basis. The problem is that if the ex-dividend date of the underlying shares falls within the T+2 timeframe, there no

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T+1 shift sparks dividend chaos in HK structured products - Risk.net (2024)

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