The new AEX Weekly Option series will be introduced on Friday mornings before the markets open, and will expire the following Friday. The first AEX Weekly Options will be launched on Friday 26 May 2006 and expire on Friday 2 June 2006.
AEX Weekly Options will have the same contract specifications as the existing AEX options that expire each month, the only difference being their lifetime. The European-style options are settled in cash and their final settlement price will be determined by reference to the level of the AEX Index® between 15.30 and 16.00 CET on the expiry day.
No AEX Weekly Options will be introduced for the week in which the existing AEX options expire (these expire on the third Friday of the month), since the standard series have a remaining lifetime of only one week at that point.
AEX Weekly Options will be traded on LIFFE CONNECT® via the successful Amsterdam central market model, which provides a continuous two-sided market for all option series. The model offers narrow spreads and high levels of liquidity, creating an ideal platform for investors who wish to benefit from the new opportunities provided by AEX Weekly Options. In 2005, the Amsterdam equity derivatives market registered a record year, with 99 million contracts traded, up 23% on 2004. In March this year, a new daily record volume was set with over 1.1 million futures and options contracts traded.
Alan van Griethuysen, Executive Director of Sales at Euronext.liffe said: “With the introduction of AEX Weekly Options, Euronext.liffe will expand the range of possibilities open to investors who wish to respond swiftly to market developments.”
