- The derivatives offering on this product is expanded with the addition of a selection of the most liquid and actively traded European stocks as new underlyings
- The new contracts can be traded on MEFF, BME’s derivatives market, and will be cleared and settled through BME Clearing
The offering of European-style Cash-Settled Options on MEFF, BME’s derivatives market, continues to expand. One year after its launch, with contracts on ACS, Banco Santander, Banco Sabadell, BBVA, Endesa, Ferrovial, Iberdrola, Inditex, Repsol, Telefónica, Indra, CaixaBank and Técnicas Reunidas, MEFF is adding 46 new underlyings, selected from among the most liquid and actively traded European stocks.
The new underlyings for these stock options are Adidas, Adyen, Ahold Delhaize, Air Liquide, Airbus, Allianz, Anheuser-Busch InBev, Argenx, ASML, AXA, BASF, Bayer, BMW, BNP Paribas, Danone, Deutsche Bank, Deutsche Boerse, Deutsche Post, Deutsche Telekom, DHL Group, Enel, Eni, EssilorLuxottica, Ferrari, Hermès, Infineon Technologies, ING, Intesa Sanpaolo, L’Oréal, LVMH, Mercedes-Benz, Munich Re, Nordea Bank, Prosus, Rheinmetall, Safran, Saint-Gobain, Sanofi, SAP, Schneider Electric, Siemens, Siemens Energy, TotalEnergies, UniCredit, Vinci, Volkswagen, and Wolters Kluwer.
Cash-Settled Options means that the contract is settled in cash, without physical delivery of the underlying asset. As these are European-style options, they can only be exercised at expiry, although the position can be closed beforehand.
The new contracts will be available for trading on MEFF and will be cleared and settled through BME Clearing.
“This launch expands MEFF’s product offering by incorporating derivatives on European stocks and provides participants with efficient access to some of the leading large-cap European companies, in a standardized, transparent market with central clearing. With this new selection of underlyings, these contracts, which have been very well received by investors, offer even more alternatives for investors,” explains Clotilde Salmerón, General Manager of MEFF.
The main advantages of these contracts are:
• Standardization: they simplify the trading and investment process and benefit the liquidity of the contracts.
• Accessibility: they are available in the order book and registration applications, thereby improving market transparency and efficiency.
• Flexibility: they allow for more varied and sophisticated investment strategies without the possibility that the holder of the strategy will have to face early exercises.
• Cash-Settled: as options settled by differences, the seller of a call and the buyer of a put are not obliged to hold the shares on the expiry date.
The strong performance of this product is reflected in the trading volumes: so far this year, European-style Cash-Settled options on Spanish stocks have reached almost one million contracts, close to 10% of the total volume traded in stock options.
You can find more information about MEFF on its website and about BME Clearing at this link.