Exercise of stock options
The existing varieties of Shanghai and Shenzhen stock options all adopt European exercise, that is, the right to apply for exercise only on the expiration date of the option.
When exercising the option, the obligee should take the initiative to declare, that is, the obligee needs to declare the exercise instruction before 15: 30 if he wants to exercise the option on the expiration date, otherwise it will be regarded as giving up the exercise. Individual stock options are mainly delivered in kind, and cash delivery is adopted under special circumstances.
The above picture shows the process of stock option exercise business in Shanghai and Shenzhen stock markets, and then I will introduce its main implementation in O3 system.
1 before and e 15:30:
The obligee transmits the option instruction-option instruction-and the interface issues the exercise instruction.
The exerciser issues the exercise authorization on the interface of transaction management-option transaction-exercise transaction. (O3 system supports free delegation of option exercise)
2. End of E Day:
The "Receiving Settlement Documents" or "DBF Import" step controlled by the daily operation flow receives the settlement documents of option exercise sent by Deng Zhong, in which the Shanghai Stock Exchange receives the op_jsmx file and the Shenzhen Stock Exchange receives the sq_jsmx file.
The "liquidation and settlement processing" or "capital settlement" step controlled by the daily operation flow liquidates the expired positions with undeclared exercise rights and undistributed exercise rights on the current day, and releases the covered short positions with expired exercise rights and undistributed exercise rights on the current day.
3. At the beginning of e+1day:
In the "Settlement Data Receiving" step controlled by the daily operation flow, the exercise delivery preprocessing is performed. The specific treatment is divided into five situations: the obligee, the obligor, the obligor, the obligee and the obligor of the put option, as shown in the following figure:
4.E+ 1 day end: formal delivery.
In the step of "receiving liquidation documents" or "importing into DBF warehouse" controlled by daily operation flow, the option exercise delivery documents sent by Deng Zhong are received, among which? Shanghai Stock Exchange receives op_zqjs file, and Shenzhen Stock Exchange receives sq_zqje file.
In the "clearing settlement processing" or "warehouse capital settlement" step of daily business process control, the formal exercise settlement processing will be carried out. Before the formal exercise settlement, the exercise settlement done at the beginning of E+ 1 will be retreated, and then the formal settlement will be carried out. Formal settlement is basically the same as pretreatment, except that there is no need to freeze funds and underlying bonds after formal settlement.
Stock index option exercise
CICC CSI 300 stock index options adopt European exercise, cash delivery and support automatic exercise. The specific rules for exercising stock index options are as follows:
1) customers can apply to the exchange for exercise and waiver of exercise within the specified time; ?
2) At the end of the exercise date, if the positions that meet the exercise conditions do not apply for giving up the exercise, the Exchange will exercise the exercise automatically;
3) If the position does not meet the exercise requirements, the customer's exercise application will be considered invalid;
4) Specific conditions for automatic practice:
On the last trading day, the real option whose real value is greater than the exercise fee of the option contract stipulated by the exchange shall be deemed as the buyer's application for exercise, except that the buyer applies for waiver of exercise before the time stipulated by the exchange;
On the last trading day, the Exchange will not exercise the exercise application made by the buyers of imaginary options, flat options and real options whose actual value is less than or equal to the exercise fee specified by the Exchange;
The expiration date of stock index option contract is judged by its exercise price and delivery settlement price.
The key processing steps of the exercise process of stock index options in Hang Seng Investment O3 system are as follows:
1, e day:
At present, O3 system does not support the exercise declaration of stock index options, and it will exercise automatically if it does not do trading in business.
2. End of E Day:
Receive exercise file option execution. DBF； In the step of "receiving liquidation documents" or "importing warehouse DBF" controlled by daily operation flow;
Exercise rights in the steps of "clearing settlement processing" or "clearing warehouse funds" controlled by daily operation flow;
Commodity options exercised his right.
At present, commodity options in China adopts the way of exercising rights in Europe and America, which mainly implements physical delivery and supports automatic exercising rights. The specific rules for exercising rights are as follows:
1) Within the time specified by the exchange, the option buyer can apply for exercise, or apply for cancellation of automatic exercise (big exchange) or waiver of exercise (Zheng Exchange and the previous exchange);
2) After the market closes on the due date, the Exchange will automatically exercise the following rights:
Call option positions whose exercise price is lower than the settlement price of the underlying futures contract of the day automatically apply for exercise;
Put option positions whose exercise price is greater than the settlement price of the underlying futures contract of the day automatically apply for exercise;
The above exercise needs to be satisfied: the sum of the futures positions obtained after the exercise and the futures positions originally held cannot exceed the position limit; After the exercise, the balance of the settlement reserve of the option buyer shall not be less than zero. Otherwise, implement partial exercise or non-exercise; '
Customers can apply for hedging and liquidation of their two-way option positions under the same transaction code;
Customers can use the same trading code to apply for hedging and liquidation of futures two-way positions obtained by their exercise, or they can use the same trading code to apply for hedging and liquidation of futures two-way positions obtained by their exercise and the original positions in the futures market, and the hedging amount shall not exceed the futures positions obtained by their exercise;
In Hang Seng Investment O3 system, the key processing of stock index option exercise process is as follows:
1. Exercise Day: Exercise Declaration.
The obligee transmits the option instruction-option instruction-issues the exercise instruction on the interface;
The exercise party issues exercise authorization through the interface of transaction management-option transaction-'exercise transaction' or the interface. (Free entrustment to support O3 system option exercise);
The transaction management-option trading interface also supports the declaration of option self-hedging before option exercise and the declaration of futures self-hedging after performance;
If the exercise declaration is not made, the exchange will automatically exercise the right at the end of the maturity date.
2. Exercise end date:
Receiving the exercise file optioneexception. DBF is in the step of "clearing file receiving" or "warehouse DBF importing" controlled by the daily operation flow;
It is carried out in the steps of "clearing settlement processing" or "warehouse capital settlement" in daily business process control, and the specific processing is shown in the following figure;