Cash Settled Equity Options, ETFs and BDRs

Optional

Facilitates the everyday exercise of options

Soon, cash settled Equity Options, ETFs and BDRs with daily expiration will be out on the market. To date, these contracts only had physical settlement with monthly and weekly expirations. The new products operate in the same way as Index Options.

Furthermore, they expand trading possibilities and bring greater operational efficiency to the market. Daily expiration allows participants to adjust their positions with greater precision in relation to macroeconomic and corporate events, It also aligns strategies with other market expirations.

Initially, a reduced set of tickers will be launched, allowing for gradual adaptation to the new model. Monthly and weekly physically settled options will continue to be available in the current model.

Project Tags:

Trading

Risk

Listed

In Progress

Listed

Pricing

Clearinghouse

Product benefits

Easy to operate

Cash settlement simplifies the exercise of options, eliminating the need for physical delivery of assets.

More strategies

Frequent expirations allow for accurate position adjustments and alignment of strategies with market events.

Flexibility

The new model expands trading alternatives and complements current physically settled options.

Learn more

Cash settled options expand strategies in the stock market.

Expiration: Monday to Thursday.
Ticker: The letter “F” (representing cash settlement) will be added to the end of the Options ticker.
The same rationale as for Ibovespa Daily Options, i.e., letters “A” to “E” representing the expiration day of the week, where:

"A" will represent expiration on Mondays

"B" will represent expiration on Tuesdays

"C" will represent expiration on Wednesdays

"D" will represent expiration on Thursdays

"E" will represent expiration on Fridays (initially it will not exist)

Example: PETRA300B1F

PETR: Underlying asset PETR4 (no change) A: January expiration call (no change) 300: Option series (no change) B1: Expiration on the first Tuesday of the month (no change) F: Cash settlement (new character)

Changes: BVBG.028 file - Field "<DlvryTp></DlvryTp>" will be changed to differentiate between 0 and 1 for options with physical and cash settlement. In Market Data, a new field for OptPayoutType will be created.
Inclusion of the closing price for Equities, ETFs and BDRs in the following messages: bvmf.012, bvmf.015, bvmf.019

More information to be released soon.