Canadian Derivatives Exchange*

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 designated quarterly cycle of March, June, September and December.

Annual expiry of March (long-term options).

Last trading day / Expiration

Trading ceases on the 3rd Friday of the contract month, providing it be a business day; if not, the 1st preceding day. Options expire on the last trading day.

Contract type

American style.

Price fluctuation

  • C$0.01 for premiums of less than C$0.10
  • C$0.05 for premiums of C$0.10 and up

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)

Trading procedures