ICE To Remove Price Range Limit In Options Post-Close Sessions
March 25 2009 - 9:54AM
Dow Jones News
ICE Futures U.S. will allow options contract traded in the after
hours sessions to trade outside the daily range, effective Monday,
March 30, the exchange said Tuesday in a notice.
Floor brokers will be required to report prices traded during
the session, according to the notice.
Previously, options traded after the daily settlement needed to
be priced within the day session. ICE is implementing the change
"to allow session prices to accurately reflect the value of the
underlying futures contract which may move significantly after the
option contract closes," the exchange said in the notice.
The removal of price limitations allows a new high or low to be
set during the post-session, ICE said. The prices reported by
brokers from the post-close session will be reported with time and
sales data and disseminated to the public.
ICE conducts a post-close trading session for each futures and
options contract. Details regarding each contract's daily
commencement and pricing can be found at
https://www.theice.com/publicdocs/futures_us/exchange_notices/AmendmentstoRule409-%20PostClose.pdf
-By Holly Henschen, Dow Jones Newswires; 201-938-2338;
holly.henschen@dowjones.com