Commodity Options. The Client acknowledges and agrees that commodity option contracts may not be exercised and must be closed out by offset. Except for cash-settled commodity options, if the Client has not offset commodity options contract positions at least one (1) hour prior to the time specified by an exchange for final settlement, IBIE or its affiliates are authorised to do so, or to sell any position into which the option position is converted upon expiration, or to otherwise liquidate the resulting positions, and credit or debit the Client's account accordingly. The Client shall pay IBIE or its affiliates for all costs and expenses related to such liquidations and shall hold IBIE and its affiliates harmless for any actions taken, or not taken, in connection therewith.
Commodity Options. Before entering into any transaction involving a commodity option, the Customer should thoroughly understand the nature and type of option involved and the underlying physical commodity. In addition to the risks set out above, the Customer should note that specific market movements of the underlying physical commodity cannot be predicted accurately. The prices of commodities can and do fluctuate, and may experience up and down movements which would affect the value of the option.
Commodity Options. With respect to Transactions involving commodity options, it is a producer, processor or commercial user of, or merchant handling, the commodity which is the subject of the commodity option Transaction, or the products or byproducts thereof, and that such producer, processor, commercial user or merchant enters into the commodity option Transaction solely for purposes related to its business as such.
Commodity Options. More recent versions of presale instruments have included token sale-related rights, which provide investors or issuers with a token call or put right, as applicable, upon the consummation of a token sale at an agreed price or discount. Such rights constitute a commodity option that would be subject to CFTC regulation as a swap,17 unless an exemption applies. Trade options are one such possible exemption, as they are generally exempt from regulation by the CFTC, other than for certain large trader reporting requirements and the CFTC’s general anti-fraud and anti-manipulation enforcement authority (the Trade Option Exemption).18 In order to qualify as a trade option and benefit from the Trade Option Exemption,19 the commodity option in question must be: Intended to be physically settled if exercised; Entered into with an offeror who is either an eligible contract participant (“ECP”)20 or a producer, processor or commercial user of, or merchant handling, the commodity (or products or by-products thereof) that is the subject of the option, and such offeror is offering to enter into such option solely for the purposes related to its business as such; and Entered into with an offeree who is a producer, processor or commercial user of, or merchant handling, the commodity (or products or by-products thereof) that is the subject of the option, and such offeree is entering into such option solely for the purposes related to its business as such. The Trade Option Exemption was developed to afford commercial market participants with an exemption from trading in commodities that are physically delivered. The availability of the exemption for commercial market participants is not currently foreclosed to participants solely by virtue of their also being investors. As a result, an option to purchase tokens held by investors who are also network participants as part of their business may be eligible for the Trade Option Exemption if the conditions are met. Nevertheless, presale agreements are still heavily marketed to investors that are not commercial market participants. As a result, the Trade Option Exemption will not be available in many instances. Hybrid Instrument Exemption The Hybrid Instrument Exemption (defined below) may be another avenue for exemption from commodities law regulations applicable to commodity forward contracts and/or commodity options. Under CFTC Rule 34.2(a), a “hybrid instrument” is defined to include an equity or debt security with “one o...
Commodity Options. The Client acknowledges and agrees that commodity option contracts may not be exercised and must be closed out by offset. Except for cash-settled commodity options, if the Client has not offset commodity options contract positions at least one (1) hour prior to the time specified by an exchange for final settlement, the Financial Intermediary or its Affiliates are authorised to do so, or to sell any position into which the option position is converted upon expiration, or to otherwise liquidate the resulting positions, and credit or debit Client's account accordingly. Customer shall pay the Financial Intermediary or its Affiliates for all costs and expenses related to such liquidations and shall hold IB UK and its Affiliates harmless for any actions taken, or not taken, in connection therewith.
Commodity Options. Introducing Broker acknowledges and agrees that commodity option contracts may not be exercised and must be closed out by offset. Except for cash-settled commodity options, if Introducing Broker has not offset commodity options contract positions at least one (1) day prior to the close of trading prior to final settlement, Interactive is authorized to do so, or to sell any position into which the option position is converted upon expiration, or to otherwise liquidate the resulting positions, and credit or debit Introducing Broker’s account accordingly. Introducing Broker shall pay Interactive for all costs and expenses related to such liquidations and shall hold Interactive harmless for any actions taken, or not taken, in connection therewith.
Commodity Options. The underlying asset for a contract of this type can be either a physical commodity or a commodity futures contract.
Commodity Options
