Options on Exchange-Traded Funds
Underlying
Units of exchange-traded funds.
Trading unit
One option contract represents 100 units of the exchange-traded funds.
Contract months
Nearest three months plus the next two months in the March, June, September, December quarterly cycle.
Annual expiry of March (long-term options).
Last trading day
The 3rd Friday of the contract month, providing it be a business day; if not, the 1st preceding business day.
Expiration day
The Saturday following the last trading day of the contract month.
Contract type
American style.
Minimum price fluctuation
- C$0.01 for premiums of less than C$0.10
- C$0.05 for premiums of C$0.10 and up
Since July 27, 2007, certain options classes are subject to new minimum quotation spreads. For more information on penny trading, refer to circular 031-13.
Reporting limit
500 contracts on the same side of the market in all contract months combined.
Position limits
Information on position limits can be obtained from the Exchange as they are subject to periodic changes. See Circulars.
Price limit
A trading halt will be invoked in conjunction with the triggering of "circuit breakers" in the underlying.
Strike prices
- Set at a minimum of C$0.50 intervals
- Set at a minimum of C$1.00 intervals (long-term options)
Exercise
Via the Canadian Derivatives Clearing Corporation (CDCC)
Delivery
Via the CDS Clearing and Depository Services Inc., on the 3rd business day following the exercise date.
Trading hours (Montréal time)
9:30* a.m. to 4:00 p.m.
* The regular session of the ETF option market will open at 9:30 a.m. Each option class will then open for trading when a trade occurs on its underlying security on a recognized Canadian exchange. If no such trade has yet occurred, the option class will open for trading at 9:35 a.m.
Clearing corporation
Canadian Derivatives Clearing Corporation (CDCC)