(1) Non-due date

During the trading hours of the day, you can submit an application for exercising the option position through customers and members. At the time of settlement, the Exchange will apply for exercise on the same day.

(2) Maturity date

During the trading hours of the day and after the market closes, customers can submit an application for exercise or waiver through customers. After the market closes, the time for the customer to submit the application for exercise or waiver shall be agreed by the member and the customer.

During the trading hours of the day and between 15:00 and 15:30 after the closing of the market, members can submit exercise or exemption applications and batch exemption instructions through the member terminal, or they can submit a single exercise application through the service system, but they cannot submit a single exemption application. Through the exercise application submitted by the club, the exchange does not freeze the corresponding option position.

At the time of settlement, the exchange will automatically exercise the remaining unsold positions of the expired options according to the real options (relative settlement price) and automatically abandon the imaginary options. Members should remind customers to hold options near the fair value, which may lead to the inconsistency between the settlement price and the closing price.

Second, the buyer's active exercise of verification.

For futures options, when the buyer applies for exercise, the available funds shall meet the requirements of futures trading margin, and members shall freeze the corresponding funds and positions of customers. If the funds are insufficient, the member shall not accept the customer's application for exercise. When the buyer applies for exemption on the expiration date of the option, the member freezes the corresponding position of the customer.

When the corresponding exercise is revoked or the application is abandoned, the member releases the corresponding funds and positions of the customer.

Three. Calculation and batch abandonment of exercise funds on maturity date

Members shall calculate the customer's exercise funds after settlement on the day before and after the expiration date. Inform customers who are expected to be short of funds, especially those who have a large gap in exercise funds, and make good preparations for funds to avoid being unable to exercise due to insufficient funds. For customers with insufficient exercise funds, a warehouse abandonment list is generated through the batch warehouse abandonment procedure and submitted to the exchange in the form of instructions.

Members should sign a supplementary agreement with customers in advance, stipulate the calculation standard of exercise funds, and keep and refer to the relevant data of batch exemption on maturity date as the basis for batch exemption from potential legal liabilities. For the standard of batch waste, the degree of handling fee or real value can be considered.

Members should prepare sufficient settlement reserve, and the exchange will measure the exercise funds of members and notify members with insufficient funds to replenish funds in time.

Four. Processing sequence of exercise on maturity date

At the time of settlement on the maturity date, the Exchange shall handle the exercise matters in the following order:

1. Exercise or abandon application and batch abandonment;

2. A single exercise application will be adopted;

3. The exchange will automatically exercise or give up.

Five, practice the principle of pairing

In settlement, the principle of option seller pairing follows the order of speculation first, arbitrage later and hedging later. Option positions with the same attributes are paired according to the opening time from long to short.

Exercise and expression of intransitive verbs

After exercise, the call (put) option buyer establishes the corresponding target futures buying (selling) position at the exercise price, and the call (put) option seller establishes the corresponding target futures selling (buying) position at the exercise price, which is included in the futures trading volume.

Future positions inherited the original speculative or hedging attribute after exercising the speculative or hedging attribute option.

Seven. service charge

The option exercise fee is 0 yuan/hand, and the futures opening fee is charged at 3 yuan/hand after the exercise.

Eight. Other issues

(1) option expiration reminder

From 3 days before the expiration date of the option contract, the member shall notify the customer of the option expiration date by means of client, SMS or statement, reminding the customer to properly handle the expired option position. Focus on customers with large positions in real options to prevent insufficient exercise funds and the risk of overbooking.

(B) a large number of virtual options to exercise

For customers who exercise a large number of virtual options, members should focus on and remind customers to operate.

(3) Unfinished liquidation instructions on the due date

If the liquidation order submitted by the expired option is not cancelled before the market closes, the customer or member cannot submit an application for exercise or waiver through the trading order before 15:30. If the customer's exercise funds are not calculated enough, the fund gap will increase after the real option is automatically exercised. Members should remind customers to deposit in time or cancel the liquidation order before the market closes. It can also be agreed with the customer in the supplementary agreement, in which case the member cancels the order on behalf of the customer.

(4) Unilateral market

If the trading of the underlying futures contract is suspended due to the unilateral market, the expiration date of the corresponding option contract shall be postponed to the next trading day, and the member shall inform the customer of the relevant situation in advance.

(5) Hedging after market makers exercise their rights.

For market maker customers, the futures positions after exercise are still treated according to the principle of market maker hedging and liquidation, and the futures positions after exercise by non-market maker customers are not hedged.

(six) after the exercise, the members are short of funds.

If the member's funds are insufficient after the exercise, it shall be implemented according to the current futures forced liquidation system.

Zhengzhou Commodity Exchange

March 3, 1965 438+07