Derivatives: Introduction of individual exercise limits for stock options contracts with delivery

Stock options with delivery of underlying shares at expiration are automatically exercised (also known as standard exercise) by the clearing house if they are at least 1% in-the-money when considering the closing price of the underlying share (“the fixing price”). As of April 20, 2015, a member may also specify individual exercise limit parameters (in per cent or absolute value) per member ID or clearing account. An individual exercise limit specified for an options group will override the default value of 1% for standard exercise. For a detailed description of the functionality, please see the attached file.

The limits can be defined by members using the Genium INET Clearing Workstation 1 interface, or via the OMnet API. The functionality will offer support for General Clearing Members to configure the limits on-behalf of their Non Clearing Members.

NB! A Clearing Workstation 1 user account is by default not given write access to this new functionality. Write access is activated per account upon request to Member Services at ms.gi@nasdaq.com.

For further information concerning this exchange notice please see the attached file or contact Clearing Operations, telephone +46 8 405 6880 or clearing@nasdaq.com