This page contains relevant information about exercising options on Nasdaq's emission-contracts. The process is described below in more detail:
- On the option exercise day, a fixing price is set at 12.00 CET based on volume-weighted trades in the underlying contracts. As soon as the prices are calculated they will be published, with the "Final Option Exercise list" attached, through an operational message. The list shows which strikes will be automatically exercised based on the option fixing price—unless the option holders protect themselves from automatic exercise or choose to alter the manual exercise.
- Standard Exercise for call options will be invoked where the difference between the Exercise Price and the Option Fix is equal to or higher than EUR 0.05. Standard Exercise for put options will be invoked where the difference between the Exercise Price and the Option Fix is equal to or higher than EUR 0.05.
- Manual Exercise instructions or reservations against Standard Exercise from the option holder must be received and confirmed by the Clearinghouse prior to the Option Exercise Time.
Following a Manual Exercise, or where a reservation has been made against Standard Exercise, the option writer is chosen by random draw amongst the counterparties with positions in the contract. The chosen option writer will be informed about the results of the draw at such time as specified in the Trading and Clearing Schedule.
- In order to protect oneself against Automatic Exercise or to otherwise affect the Manual Exercise of options, participants must use the "Commodities Option Exercise"-form (please see below)
- Nasdaq accepts forms between 08.00 and 12.30 CET on the exercise day. If changes are made, then the last form is considered valid.
- As soon as possible, after 12.30 CET on the exercise day, Nasdaq will inform the market through an operational message of the volume from the final option exercise requests and reservations.
Retraction of form: If an automatic exercise reservation or manual exercise request is incorrect, and the buyer wants no action to be taken based on the form, Nasdaq must be notified. In this case, please return the incorrect original form to Nasdaq and include the text "We hereby confirm the retraction of this form" along with a signature. This retraction form must be sent within the time limit stated above