Thursday September 4 2025
News Source: Global Exchanges
Focus: Derivative Market Segment
Type: General
Country: Spain
On 4th September 2025, Bolsas y Mercados Españoles (BME) announced that it has listed new European-style cash-settled options contracts, through Mercado de Futuros Financieros (MEFF).
Cash settlement is the procedure whereby the contract is fulfilled on the settlement date only through the transfer in cash of the difference between the price agreed in the contract and the settlement price at maturity. Therefore, in this type of option, there is no possibility of early exercise.
The main advantages of these new contracts, available to investors since March 2025, are:
- Standardization: simplifies the trading and investment process and benefits contract liquidity.
- Accessibility: they will be available in the order book and register applications, improving market transparency and efficiency.
- Flexibility: allows for more varied and sophisticated investment strategies without the possibility of the strategy holder having to deal with early exercises.
- Cash-settled: as they are cash-settled options, the call seller and put buyer are not required to own the shares on the day of expiration.
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