Information for institutional investors
Options provide fund managers and other institutional investors, that hold existing equity portfolios an avenue to potentiallly reduce risk and generate ‘extra’ income. Options can also reduce market impact costs and manage capital gains implications.
ASX offers a range of products, services and market research designed specifically for institutional investors.
ASX Options Ready
Contemplating trading in ASX equity options? ASX Options Ready is an education program specifically designed for institutions. It is delivered by professional presenters with a wealth of real-life options market making and broking experience.
In addition to our core trade platforms for options, ASX provides ASX Equity FLEX Clear – a flexible, secure and offsetting clearing service tailored for buy-side customers as an alternative to over-the-counter options.
SEC ‘No Action’ Relief
The US Securities & Exchange Commission (SEC) has granted ‘No Action’ Relief to ASX equity and index options.
No Action Relief enables eligible registered broker-dealers and large financial institutions in the United States to deal in the following ASX options:
- Options over the S&P/ASX 200 share price index (i.e. XJO index options)
- Options over financial products approved by ASX, with the exception of low exercise price options (LEPOs), FLEX Class options and options where a foreign exchange is the primary exchange for the financial product.
Prior to trading in ASX options, US broker-dealers and eligible institutions must lodge a signed copy of ASX Operating Rules Procedures Appendix 2241(b) [link to ASX Operating Rules Procedures Appendix 2241(b) pdf] with every ASX participant that they use to take or write ASX options.
Signing our wholesale client agreement form can also streamline paperwork requirements for institutional customers.
Participants also have an obligation to ensure that their US clients have access to the current working version of the ASX disclosure document (options).