RSS Feeds
Product LoginTuesday, May 13, 2014
Options Trader Alert #2014 - 10
PHLX Announces Margin Levels for the NASDAQ OMX FX Options
Category:
Markets Impacted:Contact Information:
Resources: |
Effective immediately, margin level for the Euro FX option will change. Margin levels will remain unchanged for all other NASDAQ OMX FX Options. The percentages are listed in the table below. Margins applicable to NASDAQ OMX FX Options are set quarterly pursuant to PHLX Rule 721.
Margin Level Calculations
Pursuant to Rule 721- Proper and Adequate Margins, PHLX calculates a separate margin requirement for each foreign currency individually across the various currencies. PHLX determines the applicable margin percentage by reviewing, on a quarterly basis, five-day price changes comparing the base currency against the underlying currency over the preceding three-year period for each foreign currency pair underlying options traded on PHLX. The minimum margin requirement will be set at a level that would have covered price movements over the review period at least 97.5% of the time (confidence level). If the results of subsequent reviews show that the confidence level for any currency pair has fallen below 97%, PHLX will increase the margin requirement for that currency up to a 98% confidence level, and increase the monitoring of such currency pair. PHLX will also review each currency pair for large price movements outside the margin level (extreme outlier test). In instances where there is a percentage price movement--positive or negative--that exceeds two times the current margin level, the margin requirement for that currency will be set at a level that would cover 99% of all price movements.
|
|---|
Email Alert Subscriptions:
Nasdaq offers customers the ability to self select news delivery across various Nasdaq markets. Create and maintain a profile for updating alert preferences and contact information. Visit the enrollment form on the Nasdaq Trader website and sign up today! Please note that if you choose to unsubscribe from an email list, you may no longer receive potentially critical emails from the NASDAQ Stock Market regarding Nasdaq's trading and data products, regulatory issues or marketplace initiatives. To unsubscribe, also click on the enrollment form
Please follow Nasdaq on 
Facebook 
RSS and
Twitter.
Nasdaq (Nasdaq: NDAQ) is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 90 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to approximately 3,900 total listings with a market value of approximately $13 trillion. To learn more, visit: business.nasdaq.com.
