Pin risk reduction
Reduction in the existing option’s uncertainty due to the gap between the trading of options and the spot market.
Expansion of Expiring Options Trades – Phase 2
The study aims to reduce or equalize the difference in closing times between the options market on expiration day and the spot market
The second phase aims to further reduce the gap between the closing times of expiring options and the spot market.
As announced in 2023 during phase 1, we plan to equalize the end of trading hours for expiring options with the spot market.
Upon completion of Phase 1 of the project, we had a 45-minute expansion of expiring options trades, leaving a 1h15 minute lag between expiring options and the spot market to be studied now.
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benefits of the product
Alignment with international markets
The equalization between options and spot market times on expiration day is the standard for the main international exchanges.
More on Options on Equities
Phase 2 will further reduce the gap in closing times between spot markets and expiring Options.
Options on Equities is a derivative contracted through a central counterparty and admitted to trading on the exchange market managed by B3 and settled in the B3 Clearinghouse via multilateral net balance settlement. Click here for the product specifications.
Currently, on expiration date, trading of expiring option series closes at 4:45 pm (US Daylight Saving Time) and 3:45 pm (US Standard Time).Click here to learn about the current trading hours on the B3 equities market.
Timeline
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09/30/2024
Go-Live
