European-Style Derivatives Introduced by BME: Cash-Settled Options Now Available

BME, Spain's leading exchange group, has taken a significant step forward in expanding its investment offerings with the launch of new European-style cash-settled equity options. These new contracts, listed through MEFF, the Spanish derivatives market, will become available to investors starting from March 2025.

Susquehanna, a member of MEFF, played a decisive role in the launch of these new contracts. The firm, known for its contribution to the growth of European-style derivative options, is committed to providing key liquidity for the growth of the new equity options product. Susquehanna's institutional trading desk will offer liquidity for these new European-style cash-settled equity options, providing prices for both on-screen and block trades.

The new contracts offer flexibility for more varied and sophisticated investment strategies. As they are cash-settled options, the call seller and put buyer are not required to own the shares on the day of expiration. This feature simplifies the trading and investment process, benefiting contract liquidity, as mentioned earlier. Additionally, these new contracts do not have a possibility of early exercise.

Clotilde Salmerón, Head of MEFF, stated that BME is continuously providing new investment alternatives for clients. She emphasised that the standardization of these new contracts simplifies the trading and investment process, making it more accessible for a wider range of investors.

The underlying stocks for these new contracts include Banco Santander, Banco Sabadell, BBVA, Endesa, Iberdrola, Inditex, Repsol, and Telefónica. The availability of these well-established Spanish companies as underlying assets is expected to attract a significant number of investors.

BME's new launch of European-style cash-settled equity options offers incentives for various types of investors. With the new contracts available in the order book and register applications, market transparency and efficiency will improve, further benefiting investors. Susquehanna ensures solid market coverage for the new European-style cash-settled equity options, ensuring a thriving market for these new contracts.

The new equity options will continue to grow due to BME's efforts to improve its offerings and listen to client needs. With Susquehanna's support and the diverse range of underlying stocks, these new contracts are poised to make a substantial impact on the Spanish investment landscape.

European-Style Derivatives Introduced by BME: Cash-Settled Options Now Available