FTSE 100 Weekly Options - valuation on expiry?

[Sam252]

Hi IG (or anyone that can help me!)

I have called a few times today to no avail.  I am trying to get a clear and definitive answer as to when exactly the FTSE 100 weekly options are valued on expiry? 

The system states that the dealing deadline is 16:29 but it does not say when the option is valued for the purposes of settlement.

I had one person tell me it was at 'market close' but they could not confirm what time this was exactly or what market even, and just kept saying 'market close'.  The LSE closes at 4:30pm but the futures market that the options are priced against as I understand it closes at market close in the US (currently GMT 2100hrs).   

I am just after the time exactly that these options are valued for the purposes of settlement.  I am not after the dealing deadline or even the settlement time when I can expect proceeds available in my account.  

Thank you in advance.

Sam 

[AndaIG]

Hi @Sam252

Our model continuously values the FTSE100 weekly options. The model will use Friday at 16:35pm as the time at which the rate of decline will come to an end. This coincides with the time settlement is released officially which occurs after a 5min auction period. 

Regards 

Anda

[Sam252]

Thanks Anda for getting back to me so quickly, much appreciated.  

So if I understand you correctly, following a 5 min auction which starts at market close at 4.30pm, it is the spot price at 4.35pm that the options are valued for the purposes of settlement?  

 

Thanks 

[AndaIG]

Hi @Sam252

Yes that is correct, and apologies for the lack of clarity that you received earlier. 

Regards

Anda

[HeOfMuchDisgrunt]

@AndaIG Could information like this not be included in more detail on the info tabs? Often the expired options continue to update even though the settlement price has already been determined so it's hard to guess when or at what equivalent price one should roll or trade into the underlying.

Also, an option to settle into an underlying product or roll into the next month rather than cash settle would be a useful feature for many traders.