Three New Enhancements: Designed to help you manage risk with more flexibility
No Break-Up Risk: 100% match guarantee when you execute a delta-neutral covered options block trade at CME Group. The trade is bilateral with no need to expose the trade.
Alternative to OTC Transactions: Trading delta-neutral is the preferred convention for larger S&P 500 index options trades requiring capital commitment. Covered options block trades can replace the need for an OTC synthetic combo.
Risk Management: Mitigate counterparty credit exposure and associated risk with S&P 500 futures and options on futures, centrally cleared at CME.
Capital Efficiency: Save with margin offsets on listed, delta-neutral covered futures and options block trades for relief from charges commonly levied on OTC transactions from Basel, RWA and SLR
Reduced Paperwork: No ISDA or CSA documentation is required executing a covered futures and options block trade at CME Group.