OTC Flexible Options

Eurex has implemented a series of functional enhancements on OTC Flexible Options that facilitate back office processing. OTC trading in options on more than 250 individual equities, on equity indexes, Exchange Traded Funds (ETFs) and fixed income futures has thus become even more flexible.

The OTC Flexible Options facility is available for

• Options on Fixed Income Futures
• Options on Money Market Futures
• Equity Options / Low Exercise Price Options (LEPOs)
• Equity Index Options
• ETF options
• Gold & Silver Options

The handling of OTC Flexible Options trading in the Eurex® system is visualized in the film "Introduction to Trading OTC Flexible Options on the Eurex @X-Ceed Front-End".

Option trades can be tailored by individually the following parameters:

• Exercise Price - The selected exercise price can be defined above the highest exercise price of the corresponding regular options series or may be the lowest exercise price of an option (e.g. LEPOs) which is available in the Eurex® system or an intermediate price. Maximum exercise prices for OTC Flexible Options are limited to 2.5 times the highest available standard exercise price in the respective product.
  
  
• Expiration Date - The expiration date can be any exchange day (with some special Eurex defined exceptions) starting from the next business day until the longest currently active standard expiration date of the affected standard product.
  
  
• Exercise Style - American or European exercise can be selected.
  
  
• Settlement Type - The settlement type of OTC Flexible Options is arbitrary. For OTC Flexible Options trades at time of conclusion members can choose to settle their trades either with cash or with the physical settlement type available for the product.
  
  

The minimum trading size for OTC Flexible Options is identical to the OTC Block Trade size of regular Eurex options.

Details about how to use the OTC Flexible Options facility, further product information, an overview of all Flexible Options and Futures available for trading as well as a list with all members who can trade and/or clear Flexible Contracts is available in the following documents: