Material name
Date
Material Type
Language
Format
Size
Pin risk reduction
Reduction in the option’s uncertainty between the closing of expiring options and the spot market.
Extension of Expiring Options Trades - Phase 1
Extension of Expiring Options Trades - Phase 1
Extension of Expiring Options Trades - Phase 1
In seeking a better alignment with the spot market, this project will extend trading of expiring options by 45 minutes
Currently, the options market on expiration day closes two hours before the spot market, from where options’ exercise prices are derived.
This project will extend trading of expiring options (outstanding options) by 45 minutes, thus reducing the gap between the closing time of expiring options and the spot market.
Sign up and follow up the project
Product benefits
Alignment with international markets
Brings the options exercise dynamics closer to international markets, where the expiring options market closes at the same time as the spot market.
More on Equity Options
Phase 1 will reduce the gap between spot markets and expiring options by 45 minutes.
Equity option 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 4:00 pm. Starting in 2024, upon completion of this project, closing will occur 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 stock market.
Upcoming Implementations
Next implementations
Following this delivery, there will be a supplementary study to explore other possibilities of further reducing the closing gap between both markets on the day the options are exercised. With the implementation of this project, B3 will deliver 45 minutes less difference between the closing of the markets, leaving a 1¼ hour gap between expiring options and the spot market. This will be worked on sometime in the future.
Timeline
-
02/09/2024
Go-live
Available to the market
Technical details
-
Catalog changes
No catalog changes
-
Main systems
No system impacted
-
Main related functions
No functions impacted
-
Certification roadmap
No impact
-
What is the Sinacor version?
No impact
