<iframe src="//www.googletagmanager.com/ns.html?id=GTM-MS2WRF" height="0" width="0" style="display:none;visibility:hidden"></iframe>

Assumption of ObligationSettlement of Index Options

Settlement of Index Options

  • Index Options transactions can be settled either by an exercise of Option or by offsetting trades (offsetting purchases or sales). With regards to TOPIX Options, Nikkei225 Options and JPX-Nikkei Index 400 Options, the right can only be exercised on the next day after The Last Trading Day (European-type option). The settlement of exercised Option and corresponding short position shall be carried out by payment and receipt of the differentials between the exercise price and the Special Quotation (SQ)※.

    ※ With regards to Options transactions, while payment and receipt of the premium shall take place on the day after the trading, unlike Futures transactions, payment and receipt of Mark-To-Market Margins do not take place.
  • In the case where offsetting purchases or sales are not executed by The Last Trading Day, all positions of ITM (In-the-Money) Options are automatically exercised unless the right is explicitly abandoned. On the other hand, all positions of OTM (Out-of-the Money) Options dissolve.

    ※ The Special Quotation (SQ) is determined based on the opening price of the component issues of each index on the next day after The Last Trading Day.