Notice

Change to ASX’s methodology to align Single Stock to Index ETO expiry dates

What's this about:
  • ASX Market
  • Trading
  • Clearing
  • Product
  • Operations
  • Technology
  • Market Data
  • Compliance
  • Risk
  • Options & ETOs
  • SS ETO expiry
  • Option expiry dates
Notice reference number: 1361.17.11
Date published: 24/11/17
Effective as of: 21/12/17
Last updated: 24/11/17

ASX Market participants and ASX Clear Participants are informed of ASX’s intention to change the current methodology for determining Single Stock (SS) monthly ETO expiry dates.

This change has been requested from a number of market users and is expected to:

  • Reduce market confusion with respect to option expiry dates

  • Increase trading volumes with more dispersion trading to occur on market

  • Better risk management across SS and Index option books

  • Align ASX with other global exchanges with respect to the option expiry date methodology

The new methodology is to make monthly expiry dates for SS ETOs set to the 3rd Thursday of the calendar month. This aligns with the methodology used for Index ETOs.

Please note that SS expiry will remain at the end of day whilst Index will remain at the start of day.

The change is to be implemented for Expiry dates greater than June 2020. All expiry dates prior to this will be under the current listing regime. The first new expiry date to be listed under the new methodology will be Dec 2020 which lists on the night of Thursday 21 December 2017. Please note that the expiry date for Dec 2020 so happens to be the same date under both the new and old listing methodology.

What do I need to do by when?

ASX Trading Participants and ASX Clearing participants are to determine if their systems can conform to the new Single Stock ETO expiry policy.

ASX doesn’t anticipate development changes but asks participants and vendors to notify ASX if they require system changes and cannot met the December 2017 deadline.

Need more information?

Issued by

Gregory Pill – Manager, Equity Derivatives

Contact information

Gregory Pill
+61 (02)  9227 0696
greg.pill@asx.com.au

 

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