Options trading launched on the Ukrainian Exchange
On April 26, 2011 the Ukrainian Exchange launched trading in options contracts.
The new instrument represents a futures-style quarterly option on UX Index Futures, i.e. the Ukrainian stock index. Currently options with settlement on 15 June 2011 and 15 September 2011 are being traded on the Exchange. The options are American style contracts, i.e. early exercise is possible. 17 strike prices with intervals of 100 points are introduced in the trading system. The initial strike price range is from 1900 to 3500 points.
The launch of options trading is the next step forward in the successive development of the derivatives market on the Ukrainian Exchange which brings the Ukrainian market closer to the best global standards.
"Last year we launched trading in UX Index futures. And now it is obvious for us that the market is ready to see a new instrument’, said Roman Goryunov, CEO at RTS Stock Exchange. "Options are a unique product in this regard, because it is an innovative instrument with a synergy effect which boosts liquidity for both the UX Index futures and the whole stock market".
According to Dmitriy Tarabakin, Managing Director of Dragon Capital, the Ukrainian stock market continues to be a rapidly developing market and the launch of options trading will undoubtedly broaden the range of opportunities for individual and institutional investors. "Options are more complicated instruments compared to futures and more attractive for experienced traders. However, the trading opportunities provided by options are incomparable to any other instruments presented on the market", added Dmitriy Tarabakin.
Options are a derivatives instrument providing a right of choice for a buyer. They can be bought and sold like other traded instruments or exercised into delivery.
Options contracts are widely used worldwide for creating efficient on-exchange trading strategies and appear as a sign of developed financial market".
"Options are a universally recognized and irreplaceable instrument for hedging against unfavourable price movements on stocks, currencies, indices and other assets", agrees Artemiy Ershov, Director of Troika Dialog Ukraine Investment Company. "Combining options and other instruments allow participants to create absolutely new trading strategies taking into account market risks, including strategies with capital protection guarantees, i.e. form riskless portfolios".
"It has become a sound practice for the Ukrainian Exchange to present new instruments for the market each spring, broadening opportunities for both market professionals and private investors’, comments Oleg Tkachenko, CEO at the Ukrainian Exchange. "In 2009 we introduced Internet trading, in 2010 trading in UX Index futures started, and now we are launching options trading. And I am sure we will not stop at this point, the Ukrainian Exchange plans to launch some interesting instruments till the end of the year".
The Ukrainian Exchange is a pool of liquidity for stocks and derivatives trading in Ukraine.
The trading on the Ukrainian Exchange was opened on March 26, 2009, and from the very start the Ukrainian Exchange became a leader of the Ukrainian stock market launching order-driven market, Internet trading, repo market, settlement with CCP and derivatives market.
The UX Index, Index of Ukrainian shares, has been calculated since launching trading on the Exchange on March 26, 2009. The initial value of the Index was set at 500 points. At the moment The Index basket consists of 15 most liquid shares.
Futures on the UX Index is the most liquid instrument of the Ukrainian market.
For further information, please contact the Public Relations Department at (044) 495-7474.