Settlement Value Symbol:
The FTSE 100 Index is a market-capitalization weighted index of UK-listed blue chip companies. The index is part of the FTSE UK Series and is designed to measure the performance of the 100 largest companies traded on the London Stock Exchange that pass screening for size and liquidity. FTSE 100 constituents are all traded on the London Stock Exchange's SETS trading system.
Stated in points, one point equals $100. Minimum tick for series trading below $3 is 0.05 ($5.00); at or above $3 is 0.10 ($10.00).
Strike (Exercise) Prices:
In-, at- and out-of-the-money strike prices are initially listed. New strikes can be added as the underlying trades through the highest and lowest strike price available.
Strike Price Interval:
Strike prices may be listed with a minimum interval of 2.5 points if the strike price is less than 200. When the strike price is 200 or above, strike price intervals will be no less than 5 points.
Up to 12 near-term months. In addition, the Exchange may list up to 10 UKXM LEAPS expiration months that expire from 12 to 60 months from date of issuance.
The third Friday of the expiration month.
European and A.M.-settled - UKXM options generally may be exercised only on the Expiration Date.
Last Trading Day:
Trading in expiring UKXM options will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.
Settlement of Option Exercise:
Exercise will result in delivery of cash on the business day following expiration. The exercise settlement value [UKS] is one-tenth (1/10th) of the FTSE 100 Index calculated by FTSE International with reference to the outcome of the Exchange Delivery Settlement Price ('EDSP') intra-day auction at the London Stock Exchange carried out on the morning of the expiration date. The exercise-settlement amount is equal to the difference between the exercise-settlement value and the exercise price of the option, multiplied by $100.
Position and Exercise Limits:
The position limit is 25,000 contracts on the same side of the market, with no more than 15,000 contracts in the near term expiration month and the exercise limit is 15,000 contracts.
Customer Strategy-Based Margin:
Purchases of puts or calls with 9 months or less until expiration must be paid for in full. Purchases of puts or calls with more than 9 months until expiration may be effected on a margin basis and must comply with Exchange Rule 12.3(c)(4)(B). Writers of uncovered puts or calls must deposit / maintain 100% of the option proceeds* plus 15% of the aggregate contract value (current index level x $100) minus the amount by which the option is out-of-the-money, if any, subject to a minimum for calls of option proceeds* plus 10% of the aggregate contract value and a minimum for puts of option proceeds* plus 10% of the aggregate exercise price amount. (*For calculating maintenance margin, use option current market value instead of option proceeds.) Additional margin may be required pursuant to Exchange Rules 12.3(h) and 12.10.
Customer Portfolio Margin:
UKXM options are eligible for a portfolio margin account. UKXM options are accommodated in a newly created high-capitalization broad-based index Product Group - the FTSE 100 Product Group. The magnitude of the valuation point range under Cboe Rule 12.4 (Portfolio Margin) for UKXM options held in a portfolio margin account is -8%/+6%. The current (spot or cash) UKXM index value will be used to calculate theoretical gains and losses for UKXM options. Additional margin may be required pursuant to Exchange Rule 12.10.
8:30 a.m. to 3:15 p.m. (Chicago time).