Clearing Processing for True Cash-settled Options

This advisory provides important information for clearing firms about processing of true cash-settled options by CME Clearing.

 

About sixty NYMEX options products are “true” cash-settled options. This means that when exercised or assigned, they simply create a cash movement, rather than a transaction in their underlying product. The table below lists these products.

 

The upcoming integration of processing for NYMEX products into the CME clearing system, marks the first time that true cash-settled options will flow through the CME clearing system. In the future, true cash-settled options are likely to be introduced for CME and CBOT products.