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OFS-1.11.8

An issuer must decide on the method for determining the cash settlement price at the time of the launch of an issue, and this must be stipulated in the offering document and or term sheet. The settlement price must be either:

(a) The average of the closing prices of the underlying securities (subject to any adjustment to reflect any capitalisation issue, rights issue, distribution or the like) for the five market days prior to, and including, the market day immediately before the relevant exercise/expiry date;
(b) The closing price of the underlying securities on the market day immediately before the exercise/expiry date; and
(c) For securities regarded as illiquid, a cash settlement price determination agreed between the issuer and the CBB for that particular security.
January 2014