Chapter 18 — Exchange Options Trading
- 18.1 Applicability and Definitions
- 18.2 Option Contracts to be Traded
- 18.3 Option Transactions
- 18.4 Rights and Obligations of Purchasers and Writers
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18.5 Position Limits
- 18.5.1 Members Prohibited from Opening Transactions that would Violate Individual Position Limits
- 18.5.2 Market Position Limits
- 18.5.3 Position Limits Subject to Change
- 18.5.4 Definition of "Control"
- 18.5.5 Reports Relating to Position Limits
- 18.5.6 Closing Off Positions
- 18.5.7 Trading Member's Duty to Inform Customers of Position Limits
- 18.5.8 Limit on Uncovered Short Positions
- 18.5.9 Other Restrictions on Option Transactions and Exercises
- 18.6 Dealings
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18.7 Doing Business with the Public
- 18.7.1 Approval of Customer's Options Trading Account
- 18.7.2 Diligence in Opening Account
- 18.7.3 Undertaking to be Obtained
- 18.7.4 Documents to be Furnished
- 18.7.5 Contract Statements to Customers
- 18.7.6 Required Courses/Fees
- 18.7.7 Transfers of Options Positions
- 18.7.8 Transactions with Issuers
- 18.7.9 Due Authorisation for Option Transactions
- 18.7.10 Taking of Orders by Customers
- 18.7.11 Communication with the Public
- 18.8 Margins and Scrip-Covered Call Options
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18.9 Exercise of Option by Customers
- 18.9.1 Exercise Cut-Off Time
- 18.9.2 Exercise through Trading Member
- 18.9.3 Allocation of Exercise Notices to Customers
- 18.9.4 Notification to the OCC of Exercise Notices
- 18.9.5 Effect of Exercise of Option — Deemed Contract
- 18.9.6 Option Exercisable Upon Payment of Premium
- 18.9.7 Due Date of the Contract for the Underlying Securities Upon Exercise
- 18.10 Adjustments
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18.11 Delivery and Settlement Procedures in the Event of A Distribution
- 18.11.1 Bonus Issue — Exercise Notice during "Cum Bonus" Period
- 18.11.2 Bonus Issue — Exercise Notice before "Cum Bonus" Period
- 18.11.3 Bonus and Rights Issues — Exercise Notices On or After "Ex Date"
- 18.11.4 Rights Issue — Exercise Notice During "Cum Rights" Period
- 18.11.5 Rights Issue — Exercise Notice Before "Cum Rights" Period
- 18.11.6 Other Distribution
- 18.11.7 Dividends
- 18.11.8 Seller of Underlying Securities in Short Position
- 18.12 Transaction Costs
- 18.13 Miscellaneous