Adjustment of credit default basket options for a complete redemption. In the case of a single or multiple payout credit default basket option, if a complete redemption event occurs with respect to one of the reference entities in the basket and no credit event is confirmed. pursuant to the rules of the listing options market, to have occurred prior to the effective date of such redemption event, the options will be adjusted by removing the affected reference entity from the basket of reference entities. When a reference entity is deleted from the basket of reference entitles because of a redemption event, the cash settlement amount of the option will be reduced by an amount reflecting the weight of the deleted reference entity in the basket. The relative weights of the other components in the basket will remain unchanged, although each will represent a proportionally larger percentage of the adjusted cash settlement amount EXAMPLE: Company XYZ is one of ten reference entities for a class of multiple payout credit default option contracts and its 8% May 15, 2022 bond issue is specified as its only reference obligation. Company XYZ was assigned a weight of 15% when the credit default option was opened for trading. During the life of the option. Company XYZ redeems the 8% May 15. 2022 bond Issue. No reference obligations remain and the listing options market determines that there are no other outstanding debt obligations of the issuer suitable for specification as reference obligations. The basket component will be removed from the credit default basket, and the cash settlement amount will be reduced by 15%. Succession Event Adjustments. A succession event occurs when one or more new entities assume one or more reference obligations of a reference entity or become the obligor with respect to any obligation that is substituted for the original reference obligations. This may occur, for example. when a reference entity is merged into a