Options Clearing gets SEC OK to clear options on index-linked products

By Angela McDaniels

Tacoma, Wash., Oct. 26 - The Securities and Exchange Commission issued an order Monday approving a rule change that allows Options Clearing Corp. to clear options based on index-linked securities.

Options Clearing filed the proposed rule change on Aug. 12, and the SEC received no comments on the proposal, according to an SEC release.

The SEC said index-linked securities are non-convertible debt that typically have a tenor of one to 30 years and that provide for a payment at maturity based upon the performance on an index or indexes of equity securities or futures contracts, one or more physical commodities, currencies or debt securities or a combination of these.

Options Clearing will treat options on index-linked securities as standardized equity options for listing and trading purposes and will generally govern their trading by the same rules that are applicable to other equity options.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.