Post by Deleted on Mar 1, 2019 20:00:50 GMT
The ODD is a regulatory document, issued by the Options Clearing Corporation ("OCC"), which all options clients must receive before buying or selling an option. Periodically, the OCC amends the ODD by issuing a supplement. The latest supplement to the ODD ("Supplement") was finalized November 12, 2018.
Understanding the changes:
i. The April 2015 Supplement has been replaced with the amended November 12, 2018 version, which makes provisions for foreign index options and certain implied volatility index options[1];
ii. In addition, the revised Supplement designates the OCC, rather than adjustment panels, as responsible for the determination of contract adjustments and the manner in which certain adjustments may affect an option's value;
iii. In alignment with T+2 settlement, the exercise settlement date for physical delivery stock options has been changed to the second business day following exercise.
If you have any questions about the Supplement or, the ODD, please visit the Options Clearing Corporation's website.
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Understanding the changes:
i. The April 2015 Supplement has been replaced with the amended November 12, 2018 version, which makes provisions for foreign index options and certain implied volatility index options[1];
ii. In addition, the revised Supplement designates the OCC, rather than adjustment panels, as responsible for the determination of contract adjustments and the manner in which certain adjustments may affect an option's value;
iii. In alignment with T+2 settlement, the exercise settlement date for physical delivery stock options has been changed to the second business day following exercise.
If you have any questions about the Supplement or, the ODD, please visit the Options Clearing Corporation's website.
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