FLEX® U.S. Dollar-Settled Foreign Currency Options

As NASDAQ OMX continues to build client synergies and efficiencies, it is in the process of migrating the Phlx.com website content into various NASDAQ OMX websites. As a first step of this initiative, FLEX U.S. Dollar-Settled Foreign Currency Options Information has been migrated to the NASDAQtrader.com website. Please use this link http://www.nasdaqtrader.com/Micro.aspx?id=PHLXFlexProductspecs#us to access this information.

Underlying Security: Any U.S. Dollar-Settled Foreign Currency upon which options currently trade can be eligible.

Type of Option: Put or call.

Strike (Exercise) Prices: Call and put strike price may be specified in terms of a specific dollar amount rounded to the nearest ten thousandth of a dollar (expressed without reference to the first two decimal places) for FLEX® currency options other than the Japanese yen currency option. FLEX® options on the Japanese yen may be specified in terms of a specific dollar amount rounded to the nearest one millionth of a dollar (expressed without reference to the first four decimal places).

Expiration Date: Any business day up to two years from the trade date, except that a FLEX® option may not expire on any day that falls on or within two business days of a non-FLEX® U.S. Dollar-Settled Foreign Currency option expiration date. For example, if Saturday, July 18, represents the expiration date for July equity options, FLEX® options may not be established to expire on Thursday, July 16, Friday, July 17, Monday, July 20 and Tuesday, July 21. Further, a FLEX® U.S. Dollar-Settled Foreign Currency option may not be established to expire on the same day as the trade date.

Exercise Style: European.

Minimum Opening Transaction Size: If there is no open interest in the particular series when an RFQ is submitted, the minimum size of an RFQ is 50 contracts.

Minimum Closing Transaction Size: The lesser of 25 contracts and the remaining size.

Position and Exercise Limits: FLEX® U.S. Dollar-Settled Foreign Currency options will be aggregated with positions in non-FLEX® U.S. dollar-settled FCO contracts, as well as physical delivery FCO contracts, for purposes of determining compliance with the position limits established by PHLX Rule 1001.

Settlement: Cash settlement in U.S. dollars.

Trading Method: The PHLX XL trading system is not available for FLEX® options. All FLEX® options must be quoted and traded in the trading crowd of the corresponding non-FLEX® options. Quoting and trading in FLEX® currency options will be subject to Rule 1079(b), which currently governs the quoting and trading of FLEX® index and equity opitons. Rule 1079(c), which governs who may trade FLEX® options, will apply to FLEX® currency options in the same manner as FLEX® index and equity options. In addition, crossing in FLEX® currency opitons will be governed by Rule 1079(b)(6), which currently applies to crosses in FLEX® index and equity options.

 

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (ODD). Copies of the ODD are available from your broker, by calling 1-888-OPTIONS, or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, IL 60606. The information on this Website is provided solely for general education and information purposes and therefore should not be considered complete, precise, or current. Many of the matters discussed are subject to detailed rules, regulations, and statutory provisions which should be referred to for additional detail and are subject to changes that may not be reflected in the Website information. The Philadelphia Stock Exchange assumes no responsibility for any errors or omissions in the Website. No statement within the Website should be construed as a recommendation to buy or sell a security or to provide investment advice.