BME, through its derivatives market MEFF, has introduced new European-style stock option contracts, settled by difference. This launch, focused on prominent underlying assets such as Banco Santander, Banco Sabadell, BBVA, Endesa, Iberdrola, Inditex, Repsol and Telefónica, marks a significant step forward in the Spanish financial landscape.
The differential settlement mechanism allows the parties, at the contract's maturity, to settle in cash based on the difference between the agreed price and the settlement price. This feature eliminates the need for physical share transfers, simplifying the process for investors.
Scheduled to be available from March 2025, the new Options offer multiple advantages. Its standardized design facilitates trading and increases market liquidity, while its access through the order book guarantees greater transparency and efficiency. The flexibility of these options allows investors to implement complex strategies without the obligation to exercise early, ensuring that neither the seller nor the buyer needs to own the shares at expiration.
Clotilde Salmerón, CEO of MEFF, highlighted the relevance of this innovation, stating that her team is focused on meeting investors' demands and expanding the derivatives market in Spain. Salmerón considers this launch as a crucial opportunity to strengthen the sector.
Susquehanna's involvement, as an active participant in MEFF, has been essential to the development of these options. As a leading liquidity provider, Susquehanna has committed to offering competitive prices, both on screen and in block trades, ensuring robust market coverage that will benefit all participants.
With this new offer, BME and MEFF reinforce their position in the financial market, demonstrating their ability to adapt to the changing needs of investors and contribute to the growth of the derivatives market in Spain.
