KBW Bank Index

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The cash-settled KBW Bank Index (BKX), traded on the International Securities Exchange and PHLX[1] (BKX 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[2] at these exchanges mirror one another.

Product Specifications[edit]

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).


  1. "Directory of Listed Products”. Options Clearing Corporation.
  2. Product Details. International Securities Exchange.