The underlying instruments are managed by Lyxor Asset Management..…
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• European sectors
• Emerging markets
The contracts are available on the Paris market via the LIFFE CONNECT® central order book, with clearing provided by LCH.Clearnet S.A.
ETFs – diversification with a single transaction
ETFs are simple, cost-effective investment products which replicate the performance of an index or sector. They are traded on exchanges like ordinary shares enabling investors to gain exposure to a chosen market or sector in a single transaction.
ETFs have enjoyed significant growth since they were launched in Europe and are now widely used by both private and professional investors.
Using options on ETFs
Options on ETFs operate just like individual equity options providing the same risk management and portfolio enhancement opportunities.
Options on ETFs offer investors the opportunity to:
• gain exposure to an ETF position
• enhance returns
• hedge and hence protect a market position
• use different trading strategies depending on the market outlook.
Contract size/Unit of trading | An ETF option normally equals rights over 100 underlying shares |
Expiry months | 1, 2, 3 monthly; 6, 9, 12 quarterly (of the March, June, September, December cycle) and 18 and 24 half yearly (of the June, December cycle). |
Pricing unit/Quotation | Euros per share |
Minimum price movement (Tick size and value) | € 0.01/€ 1.00 |
Exercise | American style option Exercise until 19:15 Paris time on any business day, extended to 19:45 Paris time on the Last Trading Day |
Last trading day | Trading ceases at 17:30 Paris time on the third Friday of the expiry month. In the event that the third Friday is not a business day, the Last Trading Day shall normally be the last business day preceding the third Friday. |
Settlement | Physical delivery of 100 shares (or other such number of shares as determined by the terms of the contract). The settlement day is three business days after the exercise day |
Trading hours | 09:06 – 17:30 Paris time |
NYSE Liffe market | Paris |
Trading platform | LIFFE CONNECT® |
Clearing | LCH.Clearnet S.A. |
Trading fees | €0.55 per lot ; when order size is ≥ 6000 lots, the fee is € 160 per trade for Client accounts and € 80 per trade for House and Market Makers’ accounts |
Wholesale services | Block trading (minimum size 500 lots). Block trades can be submitted until 18:15 Paris time |
Underlying ETFs for new options on ETF shares listed on the Paris market
Source: ETFWorld – Euronext
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