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Derivatives market clearing

Clearing services for on-market and off-market equity derivatives

Derivatives on ASX Clear

Legal Entity Identifier: 549300JQL1BXTGCCGP11

On market

The ASX Clear Derivatives Clearing System provides efficient and secure clearing services for exchange-traded options traded on ASX Trade.

 

Over-the-counter

ASX Equity FlexClear™ is a flexible, secure, and offsetting clearing service tailored for over-the-counter (OTC) equity and index options.

ASX Clear Derivatives Clearing System (DCS)

1  Intraday margin payments may be requested by ASX Clear at any time between 12:00 – 3:30. Payments must be settled within 2 hours of notification.

2  Allocations are novated to ASX Clear when accepted and registered. Clearing participants should have adequate processes in place to identify contract positions which are to be excluded from exercise and automatic match-out processing.

How DCS exercises exchange-traded options (ETOs)

During end of day processing, DCS automatically exercises expiring, in-the-money ETO positions. Clearing participants need to use the Member Clearing Module (MCM) to exclude the individual account from exercise before the exercise cut off time of 19:00, if they do not want it to be auto –exercised.

Note that both in-the-money and out-of-the-money long positions can be exercised. As a result, all open short positions can potentially be included in the random assignment process.

ASX Equity FlexClear™

Key features

ASX Equity FlexClear is a flexible offsetting clearing service tailored for buy-side customers as an alternative to over-the-counter (OTC) options trading. Using a secure online interface, participants can register OTC trades for clearing and settlement.

Reporting Hours

  • Single Stock - 10.10am – 4.00pm AEST
  • Index - 9.50am – 4.30pm AEST

Available Clearers

  • ABN Amro
  • Bell Potter
  • Credit Suisse
  • Deutsche
  • JP Morgan
  • Macquarie
  • Pershing
  • UBS

Benefits of ASX Equity FlexClear™

  • Flexibility to specify maturity, option type, exercise price and exercise type.
  • OTC option trades reported to ASX are 100% confidential with complete end-to-end anonymity.
  • No ISDA agreement required.
  • ASX acts as central counterparty, independent valuation and corporate actions agent.
  • Positions offset with ETOs.
  • Participants can enter a trade with one counterparty and exit via another.
  • Position netting for back-to-back transactions.