IG Securities, the Japanese subsidiary of global trading giant IG Group, has published a notice of dividend equivalents for its clients who hold positions in Japanese stocks, the Japan 225 Stock Price Index and stocks linked to the Tokyo Stock section. The announcement, which relates to September 26, 2024, marks a key date for traders as many Japanese companies will close their books for the fiscal month, making it the last day to transfer shares.

As part of the notice, IG Securities informed clients that holders of individual shares, Japan 225 stock index issues (excluding futures) and Japan 225 retirement option issues, as well as Tokyo Section stock index issues and retirement option issues, will receive dividend equivalent payments. These payouts will be determined based on positions held as of 3 p.m. on Sept. 26.

Customers holding long positions or buy positions will be eligible to receive dividend equivalents, while customers holding short positions or sell positions will receive a negative equivalents adjustment. The Company cautions that the published dividend amounts are based on Bloomberg projections as of September 5, 2024 and may not accurately reflect the actual dividend equivalents that will be paid or withheld.

Estimated dividend equivalents for various positions:

Japan 225 stock price index (¥500)

- Buy position: approximately ¥132,270

- Sell position: -¥132,270

Japan 225 stock price index (¥100)

- Buy position: approximately ¥26,450

- Sell position: -¥26,450

Japan 225 knockout options

- Bullish position: approximately ¥26,450

- Bearish position: -26,450 yen

Tokyo Stock Price Index (10,000 yen)

- Buy position: approximately 258,140 yen

- Sell position: -258,140 yen

Tokyo Stock Price Index (¥2,000)

- Buy position: approximately ¥51,630

- Sell position: -¥51,630

Options to exit the first section of the Tokyo Stock Exchange

- Bullish position: approximately ¥2,580

- Bearish position: -2580 yen

IG Securities urged traders to carefully consider these potential adjustments, especially those holding short positions in CFDs and bearish positions in exit options. The company also advised clients to make sure they maintain sufficient margin balances to prevent any actions to cut losses due to insufficient margin.