What are XSP Binary Options & Exchange Designated XSP Vertical Spreads?

XSP Binary Options are contracts that settle to $100 or $0 per contract, depending on the final daily settlement value of the underlying XSP index relative to the strike price of the binary option. Call options will settle to $100 if the underlying index level is at or above the strike price at expiration; otherwise, they pay $0, and put options will settle to $100 if the underlying is less than the strike price at expiration; otherwise, they pay $0. At launch, only 0 and 1 days to expiration contracts will be available.

Quoted XSP Vertical Spreads are standard XSP listed options that are designated by the Exchange to be available for quoting using the Exchange’s Quoted Spread Book (QSB) functionality. At launch, the Exchange will designate all 0 and 1 days to expiration, $1 wide vertical put spreads and call spreads for quoting using QSB. This is an extension of existing SPX QSB functionality. For additional information about the QSB functionality and the Complex Order Book data, see the following pages.