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Tax Basis Reporting

IRS Form 8937 provides information concerning a security subject to a corporate event which affects the tax basis of that security. OCC is required by Internal Revenue Code Section 6045B to publish an IRS Form 8937 for any equity option or security futures contract adjustment in which the number of contracts is increased. These adjustments typically occur is response to integer splits or distributions (e.g., 2:1, 3:1). OCC is not required to publish a Form 8937 for non-integer splits (e.g., 3:2, 4:3, reverse splits) where the contract adjustment does not affect the number of contracts.

Options

Information Memo Symbol Underlying Issuer and Action Effect on Number of Contracts Basis in Each Replacement Contract* Effective Date Tax Form
47002 EW/2EW Edwards Lifesciences Corporation 3-for-1 Split Tripled 33.33% 06/01/20 Form 8937
46651 DRIP Direxion Daily S&P Gas Exp. & Prod. Bear 3X Share 12-for-1 Split x12 8.33% 03/27/20 Form 8937
46650 GASX Direxion Daily Natural Gas Related Bear 3X Shares x10 10% 03/27/20 Form 8937
46560 TU Telus Corporation 2-for-1 Split Doubled 50% 03/18/20 Form 8937

* As % or fraction of prior basis per contract

Futures

Information Memo Symbol Underlying Issuer and Action Effect on Number of Contracts Basis in Each Replacement Contract* Effective Date Tax Form
47003 EW1D Edwards Lifesciences Corporation 3-for-1 Split Tripled 33.33% 06/01/20 Form 8937

* As % or fraction of prior basis per contract

This web site discusses exchange-traded options issued by The Options Clearing Corporation. No statement in this web site is to be construed as an endorsement, recommendation or solicitation to purchase or sell a security, or to provide investment advice. Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of the disclosure document, Characteristics and Risks of Standardized Options. Individuals should not enter into option transactions until they have read and understood this document. To obtain copies, contact your broker, any exchange on which options are traded, or The Options Clearing Corporation, 125 S. Franklin Street, Suite 1200, Chicago, IL 60606 (investorservices@theocc.com).