Options 4 Options Listing Rules Section 1. Designation Of Securities Stock or Exchange-Traded Fund Share option contracts purchased and sold on the Exchange are designated by reference to the issuer of the underlying security, expiration month, exercised price and type put options and their rules call.
Foreign currency option contracts purchased and sold on the Exchange are designated by reference to the underlying foreign currency e. Adopted Feb. Section 2. Rights And Obligations Of Holders And Writers a Subject to the provisions of General 1, Section 1, Options 1, Section 1, Options 9, Sections 15, 17 and 19, the rights and obligations of holders and writers of option contracts of any class of options dealt in on the Exchange shall be as set forth in the rules of The Options Clearing Corporation.
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Section 3. Criteria for Underlying Securities a Underlying securities in respect of which put or call option contracts are approved for listing and trading on the Exchange must meet the following criteria: 1 The security must be duly registered options and their rules be an "NMS stock" as defined in Rule of Regulation NMS under the Exchange Act; 2 the security shall be characterized by a substantial number of outstanding shares which are widely held and actively traded.
There are, however, many relevant factors which must be considered in arriving at such a determination. The fact that a particular security may meet the guidelines established by the Board does not necessarily mean that it will be approved as an underlying security.
Further, in exceptional circumstances an underlying security may be approved by the Exchange even though it does not meet all of the guidelines.
The Exchange may also give consideration to maintaining diversity among various industries and issuers in selecting underlying securities. In the event that any of the sovereign governments or the European Economic Community's European Monetary System issuing any of the above-mentioned currencies should issue a new currency intended to replace one of the above-mentioned currencies as the standard unit of the official medium of exchange of such government, such new currency also may be approved as an underlying foreign currency for options transactions by the Exchange, subject to any approval options and their rules the Exchange may deem necessary or appropriate in the interests of maintaining a fair and orderly market or for the protection of investors.
Options trading in such new currency may occur simultaneously with options trading in any of the above-mentioned currencies; provided, however, that the Exchange shall withdraw its approval of options transactions in the currency which is intended to be replaced by such new currency as expeditiously as it deems consistent with the maintenance of a fair and orderly market or the protection of investors.
Working trading robots Material to Options 4, Section 3.
Absent exceptional circumstances with respect to items 1, 2, 3, or 4 listed below, at the time the Exchange selects an underlying security for Exchange options transactions, the following guidelines with respect to the issuer shall be met: 1 There are a minimum of 7, shares of the underlying security which are owned by persons other than those required to report their stock holdings under Section 16 a of the Exchange Act.
For purposes of this Rule, the market price of such underlying security is measured by the closing price reported in the primary market in which the underlying security is traded. If the designated department determines that the proposed option does not meet the objective listing criteria set forth in Supplementary Material. The designated department shall forward the Notification Memorandum to the member or member organization that submitted the Request to List an Option within three 3 business days of its determination that the proposed option does not meet objective listing criteria.
The designated department shall maintain all Requests to List an Option and Notification Memoranda in a central file for a period of not less than five 5 years. If, options and their rules denying a request or approving a request subject to conditions or limitations, the Exchange relies upon a factor of other bona fide business interests, the Exchange shall, in addition to providing the member with a written response specifying that the Exchange has relied upon other bona fide business interests, maintain a record of the bona fide business interests supporting its decision.
The word "shares" shall mean the unit of trading of such security.
The Options and their rules deems that American Depository Receipts "ADRs" and non-convertible preferred stock which meet the criteria set forth in this Rule are appropriate for options trading and in the case of options on an ADR, i the Exchange has in place, an effective surveillance agreement with the primary exchange in the home country where the security underlying the ADR is traded or ii the combined trading volume of the ADR and other related ADRs and securities as defined below occurring in the U.
A "market information sharing agreement" for purposes of this Supplementary Material is an agreement that would permit the Exchange to obtain trading information relating to the securities held by the fund including the identity of the member of a foreign exchange executing the trade. International Funds not meeting either i or ii above shall be deemed appropriate for options trading if the Commission specifically authorizes the listing. For purposes of the foregoing, i aggregate market value of the shares of the restructure security may be determined from "when issued" prices, if available; ii comparative aggregate market value calculations shall be based upon share prices that are all either a closing prices in the primary market on the last business day preceding the selection date of the restructure security or b opening prices in the primary market on the selection date of the restructure security; and iii comparative asset values and revenues shall be derived from either the latest annual or most recently available interim not less than three months financial statements of the issuer, which may be audited or unaudited or pro forma.
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In the case of a transaction within the scope of this Supplementary Material. Any determination by the Exchange that such requirements will be satisfied based on an assumption made pursuant to this paragraph is subject to the right of any objecting exchange to demonstrate that such requirements will in fact not be satisfied. In addition, the issuing company is obligated to issue or repurchase the securities in aggregation units for cash, or cash equivalents, satisfactory to the issuer of Index-Linked Securities which underlie the option as described in the Index-Linked Securities prospectus.
The 5 Rules of Options Trading
When all option contracts in respect of any underlying security that is no longer approved have expired, the Exchange may make application to the SEC to strike from trading and listing all such option contracts. Supplementary Material to Options 4, Section 4. Absent exceptional circumstances, with respect to items 1, 2, or 3 listed below, an underlying security will not be deemed to meet the Exchange's requirements for continued approval whenever any of the following occur: 1.
There are fewer than 6, shares of the underlying security held by persons other than those who are required to report their security holdings under Section 16 a of the Exchange Act.
There are fewer than 1, holders of the underlying security. The trading volume in all markets in which the underlying security is traded was less than 1, shares in the preceding twelve months. If an underlying security is approved for options listing and trading under the provisions of Supplementary Material. In the event that the Exchange effects such a withdrawal, the Exchange shall not open for trading any additional series of options of the class covering that underlying foreign currency.
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In addition, the exchange shall consider the suspension of opening transactions in any series of options of the class covering Exchange-Traded Fund Shares in any of the following circumstances: 1 In accordance with the terms of paragraphs 1, through 7, of Supplementary Material. In addition, the Exchange shall consider the suspension of opening transactions in any series of options of the class covering Trust Issued Receipts in any of the following circumstances: 1 In accordance with the terms of Supplementary Material.
Options 1 General Provisions Section 1. A term defined elsewhere in the Rules of the Exchange shall have the same meaning with respect to this Rule, unless otherwise defined below. Participants may have more than one account number.
If the option is singly listed only on the Exchange, the Exchange will cease to add new series and may delist the class of options when there is no remaining open interest; 2 Should the Exchange determine to delist an equity option pursuant to this Supplementary Material. The Exchange's decision to delist the option is exclusively its own and is not appealable. In addition, the Exchange shall consider the suspension of opening transactions in any series of options and their rules of the class covering Index-Linked Securities in any of the following circumstances: a The underlying Index-Linked Security fails to comply with the terms of Supplementary Material.
Section 5. Series of Options Open for Trading a After a particular class of options call option contracts or put option contracts relating to a specific underlying stock or Exchange-Traded Fund Share or to a specific underlying foreign currency has been approved for listing and trading on the Exchange, the Exchange shall from time to time open for trading series of options therein.
Prior to the opening of trading in any series of options, the Exchange shall fix the expiration month and exercise price of option contracts included in each such series as follows: i Stock or Exchange-Traded Fund Share Options.
A At the commencement of trading on the Exchange of a particular class of stock or Exchange-Traded Fund Share options, the Exchange shall open a minimum of one expiration month and series for each class of options open for trading on the Exchange. B Additional series of stock or Exchange-Traded Fund Share options of the same class may be opened for trading on the Exchange when the Trend lines concept deems it necessary to maintain an orderly market, to meet customer demand or when the market price of the underlying stock moves options and their rules than five strike prices from the initial exercise price or prices.
The opening of a new series of options shall not affect the series of options of the same class previously opened. New series of options on an individual stock may be added until the beginning of the month in which the options contract will expire. Due to unusual market conditions, the Exchange, in its discretion, may add a new series of options on an individual stock until the close of trading on the business day prior to the business day of expiration, or, in the case of an option contract expiring on a day that is not a business day, on the second business day prior to expiration.