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Franking credit cashflow

The franking credit cashflow (FCC) applies only to ASX equity CFDs. With equities, dividends may have a franking credit associated with them of a value which, for ASX equity CFDs, is described as the FCC. The FCC represents the monetary equivalent of the declared franking credit. Similar to the dividend cashflow, holders of short positions pay the FCC whilst holders of long positions receive the FCC.  Find upcoming dvidends and franking credits.

Note: The FCC paid by holders of short positions and the FCC received by holders of long positions may differ depending on the percentage of net short open positions (NSOP) held by Designated Price Makers (DPMs) at the close of trading on the last cum date.

The NSOP is determined by the Exchange calculating the net open position of DPMs and expressing it as a percentage of the market's total short open position. If the net DPM position is long, holders of long positions receive 100% of the FCC. If the DPM net position is short, the FCC is discounted by the NSOP percentage.

For example, if the net DPM short open position is 30% then holders of long positions receive the FCC (short) discounted by 30%.

Franking credit cashflow diagram

 

The current NSOP for each ASX equity CFD is published each day in the DPM short position % report. You can also download the report as a CSV file.