Options on the US Dollar (USX)
Interest rate derivative trading will cease at 1:30 p.m. today, July 31, 2015. Furthermore, the Exchange's markets will be closed on August 3, 2015 (Civic Day).
One contract represents 10,000 U.S. Dollars.
At a minimum, the nearest three expiries plus the next two expiries in the designated quarterly cycle: March, June, September, December. Annual expiry of January for long term options.
Option premiums are quoted in Canadian cents per unit of foreign currency. For example, a premium quotation of 0.75 Canadian cents for an option on the U.S. dollar represents an aggregate premium value of 0.75 Canadian cents / US$ × US$10,000 × C$1/100 Canadian cents = C$75.
Aggregate premium value
The aggregate premium value for a contract is the premium quotation multiplied by the trading unit of a contract.
Minimum price fluctuation (tick size)
The minimum price fluctuation of the premium is 0.01 Canadian cent or a tick value of C$1.00 per unit of foreign currency. That is: 0.01 Canadian cent / US$ × US$10,000 × C$1/100 Canadian cents = C$1.00.
At a minimum, five strike prices bracketing the current spot rate.
Last trading day
Trading ceases at 12:00 p.m. on the third Friday of the contract month, provided it is a business day. If it is not a business day, trading will cease at 12:00 p.m. on the first preceding business day.
The last trading day of the contract month.
Final settlement price
Cash-settled. The amount to be paid or received as final settlement of each option contract is determined by multiplying the trading unit by the difference between the exercise price and the Bank of Canada noon rate expressed in Canadian cents for the designated currency, vis-à-vis the Canadian dollar on the expiration date.
Position reporting threshold
500 contracts on the same side of the market, in all contract months combined.
Information on position limits can be obtained from the Bourse as they are subject to periodic changes. See Circulars.
9:30 a.m. to 4:00 p.m.
Canadian Derivatives Clearing Corporation (CDCC).
- Procedures applicable to the execution of cross transactions and the execution of prearranged transactions
- Procedures applicable to the execution of strategies involving options
- Procedures for the cancellation or adjustment of trades
USX® is a registered trademark of Bourse de Montréal Inc.