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Exercise/assignment

Exercise and assignment

We provide our Clearing Members with straightforward exercise and assignment features.

Exercise

The holder of a long option position may exercise his or her right to demand

  • The delivery / sale receipt of the underlying against payment (Equity Options)
  • The opening of a short / long position in the underlying future (Options on Futures)
  • The receipt of cash (Index Options)

American-style products can be exercised on each trading day. European-style products can only be exercised on the last trading day.

Automatic exercise facility
Open long standard as well as flexible option positions may be automatically exercised on expiration day. Open positions are automatically exercised when the defined minimum in-the-money-amount is met. A default minimum in-the-money amount is defined for all Eurex option products.

Member may individually maintain the in-the-money amount or exclude individual positions from automatic exercise by using the abandon functionality of the Exercise Overview window.

Assignment

The holder of a short option position may be assigned to fulfil their obligation

  • To buy / sell shares of the underlying equity on any business day (Equity Options)
  • To take a short / long position in the underlying future contract (Options on Futures)
  • To settle in cash (Index Options)

Eurex Clearing uses a random procedure to assign exercise notices to the accounts maintained by each Clearing Member of the members. Assignment are legally binding.