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Assumption of ObligationSettlement of Options on JGB Futures

Settlement of Options on JGB Futures

  • Transactions of Options on JGB Futures can be settled either by an exercise of option or by offsetting trades (offsetting purchases or sales). The Option can be exercised anytime before The Last Trading Day (American-type option). When the right is exercised, underlying JGB Futures contract is entered into.

    ※ With regards to Options transactions, while payment and receipt of the premium shall take place on the next day after the trading, unlike Futures transactions, payment and receipt of Mark-To-Market Margins do not take place.
  • In the case where offsetting trades 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 unless the right is explicitly exercised.