The ASX has recently announced changes to its margin policy for Exchange Traded Options. It will be moving from its current TIMS calculation system to adopt the SPAN margining system. SPAN is the most widely used margining system in the international futures and derivatives industry today.
When will this change take effect?
ASX has advised that the changes to margin policy will be implemented on Friday 7 December 2012, which will affect margins due on Monday 10 December 2012.
What effect is the change likely to have?
- Any client who is holding a short Options position (Equity or Index) may be called on to provide additional margin.
- Some positions will be called to provide greater margin, while others may have margin returned.
- Early indications from the ASX suggest that clients holding short out-of-the-money Calls or Puts and long-dated short positions may be called upon to provide additional margin cover.
- Clients with diversified or protected positions may benefit from the change and have their margins reduced.
Where can I find out more information?
You can find more information about SPAN margining by visiting the ASX website
We’re here to help
If you have any questions about your current positions and how this change may affect you, please contact the CommSec Exchange Traded Options desk on 1800 245 698 (8:00am-5:30pm, Sydney time, Monday to Friday.)
Exchange Traded Options are issued by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) a wholly owned, but non-guaranteed, subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank). This information is based on information available from the ASX Group. CommSec, the Bank and their related entities do not warrant the accuracy of the information in this information and do not accept any liability resulting from a reliance on the content of this information or information provided on the ASX website. This information is not a summary nor exhaustive statement on any matter. This information is not advice and investors should consider this information in regard to their own objectives, financial situation and needs, and if necessary, seek appropriate professional advice.