Ukrainian Exchange launches options trading

BBR Staff Writer
Published 29 April 2011

Ukrainian Exchange has launched trading in options contracts on April 26 2011, representing a futures-style quarterly option on UX Index Futures, i.e. the Ukrainian stock index.

The Exchange said presently options with settlement on 15 June 2011 and 15 September 2011 are being traded.

The options are American style contracts, i.e. early exercise is possible.

According to the Exchange, the 17 strike prices with intervals of 100 points have been introduced in the trading system. The initial strike price range is from 1900 to 3500 points.

Options are a derivatives instrument providing a choice for a buyer. They can be bought and sold like other traded instruments or exercised into delivery.

Russian Trading System (RTS) Stock Exchange CEO Roman Goryunov said that options are a unique product in this regard, because it is an innovative instrument with a synergy effect which boosts liquidity for both the UX Index futures and the whole stock market.

Ukrainian Exchange CEO Oleg Tkachenko said that it has become a sound practice for the Ukrainian Exchange to present new instruments for the market each spring, broadening opportunities for both market professionals and private investors.

"In 2009 we introduced internet trading, in 2010 trading in UX Index futures started, and now we are launching options trading. And I am sure we will not stop at this point, the Ukrainian Exchange plans to launch some interesting instruments till the end of the year," Tkachenko said.