Difference between revisions of "KBW Bank Index"

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Because these contracts are fungible, contract specifications at these exchanges mirror one another other.


'''Full ISE specifications''': [[http://www.ise.com/WebForm/options_product_indexDetails.aspx?categoryid=234&header0=true&menu2=true&link2=true&symbol=BKX]]
PRODUCT SPECIFICATIONS


'''Symbol''':  BKX
   
'''Index Multiplier ''': 100
   
'''Price Interval ''': Strike price intervals are at least $2.50.
   
'''Minimum Trading Increments''':  The minimum trading increment for an options contract trading at less than $3.00 is $0.05. The minimum trading increment for an options contract trading at $3.00 or higher is $0.10.
   
'''Expiration Date ''': Saturday following the third Friday of the expiration month.
   
'''Expiration Months ''': Three near-term months followed by two additional month from the March quarterly cycle (March, June, September and December).
   
'''Exercise Style ''':  European
   
'''Last Trading Day ''':  Trading will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.
   
'''Settlement Type ''': A.M., cash settlement
   
'''Settlement Value ''': The exercise-settlement value is calculated using the opening (first) reported sales price in the primary market of each component stock on the last business day (usually a Friday) before the expiration date. The exercise-settlement amount is equal to the difference between the exercise-settlement value and the exercise price of the option, multiplied by $100. Exercise will result in delivery of cash on the business day following expiration.
   
'''Position and Exercise Limits''':  The position and exercise limits are 44,000 contracts on the same side of the market. Position and Exercise limits are subject to change.
   
'''Trading Hours ''' 9:30 A.M. - 4:00 P.M. Eastern Time (New York time). 




'''Full PHLX specifications''': [[http://www.phlx.com/products/bkx.html#contract]]





Revision as of 19:44, 15 November 2007

The cash-settled KBW Bank Index (BKX), traded on the International Securities Exchange and PHLX (BKXsm is a service mark of the Philadelphia Stock Exchange, Inc.), is a float-adjusted, modified market-cap index comprising 24 leading national money center banks and thrifts.

The Index is evaluated at least annually by Keefe, Bruyette & Woods (KBW) to assure that the composition is highly representative of the banking industry. KBW is an institutionally oriented securities broker/dealer and full service investment bank that specializes in the financial services sector.

The KBW Bank Index captures over $1.2-trillion market capitalization of the U.S. banking industry. Citigroup, Bank of America, J.P. Morgan Chase, Wells Fargo, Wachovia, and the Bank of New York Mellon Corp. are a few of the banks covered in the Index.


Because these contracts are fungible, contract specifications at these exchanges mirror one another other.

PRODUCT SPECIFICATIONS

Symbol: BKX

Index Multiplier : 100

Price Interval : Strike price intervals are at least $2.50.

Minimum Trading Increments: The minimum trading increment for an options contract trading at less than $3.00 is $0.05. The minimum trading increment for an options contract trading at $3.00 or higher is $0.10.

Expiration Date : Saturday following the third Friday of the expiration month.

Expiration Months : Three near-term months followed by two additional month from the March quarterly cycle (March, June, September and December).

Exercise Style : European

Last Trading Day : Trading will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.

Settlement Type : A.M., cash settlement

Settlement Value : The exercise-settlement value is calculated using the opening (first) reported sales price in the primary market of each component stock on the last business day (usually a Friday) before the expiration date. The exercise-settlement amount is equal to the difference between the exercise-settlement value and the exercise price of the option, multiplied by $100. Exercise will result in delivery of cash on the business day following expiration.

Position and Exercise Limits: The position and exercise limits are 44,000 contracts on the same side of the market. Position and Exercise limits are subject to change.

Trading Hours 9:30 A.M. - 4:00 P.M. Eastern Time (New York time).



Resources[edit]

International Securities Exchange [[1]]


Philadelphia Stock Exchange [[2]]


Keefe, Bruyette & Woods [[3]]