Tuesday, February 15, 2011

BSE DELIVERY-BASED F&O TRADING COMMENCE

The BSE will provide delivery-based trading in single stock futures and options in its derivatives
segment from February 1, expiring on or after April 13, 2011. Final settlement will be done
business day after expiry. This means that all open positions at expiry will result in delivery
obligations (obligation to buy or sell the stock) for stock futures. For stock options, there will be
no auto automatic exercise any more. Exercise of all open positions will depend on the option buyer's
discretion. If he chooses to exercise the option on the expiry day, he has to give an exercise notice
to his broker, who, in turn, will intimate the exchange within the time window provided between the time(9 a.m. to 4.30 p.m.) on the day of expiry of the contract.

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