0% found this document useful (0 votes)
128 views8 pages

Y-) /01z-) + - XZ,,Z (, w2,, V W Z/ x.-1/z - 10: R) Vi ?GZ A@@A

This document provides information about callable bull/bear contracts (CBBC) issued by HKEx Clearing Limited. CBBCs track the price movement of an underlying asset without requiring investors to pay the full price required to own the asset. CBBCs are issued as either bull or bear contracts with a fixed expiry date. Liquidity providers are responsible for providing continuous quotes for CBBCs. Key details about CBBCs include their call price, strike price at issuance, funding costs and circumstances under which liquidity providers are not required to provide liquidity.

Uploaded by

baldfish
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
128 views8 pages

Y-) /01z-) + - XZ,,Z (, w2,, V W Z/ x.-1/z - 10: R) Vi ?GZ A@@A

This document provides information about callable bull/bear contracts (CBBC) issued by HKEx Clearing Limited. CBBCs track the price movement of an underlying asset without requiring investors to pay the full price required to own the asset. CBBCs are issued as either bull or bear contracts with a fixed expiry date. Liquidity providers are responsible for providing continuous quotes for CBBCs. Key details about CBBCs include their call price, strike price at issuance, funding costs and circumstances under which liquidity providers are not required to provide liquidity.

Uploaded by

baldfish
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 8

Hohg Kohg Lxchahges ahd

Clearihg LimiIed
*+/>, G`W A`fWd`Sf[a`S^ >[`S`UW
;W`fdW, * @SdTagd M[Wi JfdWWf,
;W`fdS^, @a`Y Ca`Y
KW^ 3 +1.+ +.++ **++
>Sj 3 +1.+ ++2. ,*0/
NWTe[fW3 iii.Z]Wj.Ua_.Z]
=-_S[^3 [`Xa8Z]Wj.Ua_.Z]
9gYgef +00/
* 1
y-}~/01z-}+-*
xz,,z{,~ w2,, v w~z/ x.-1/z|10
A`hWefade dWSV[`Y fZ[e ^WSX^Wf eZag^V S^ea dWXWd fa fZW [`Xad_Sf[a` [` fZW @C=j iWTe[fW
(iii.Z]Wj.Ua_.Z]/UTTU) Xad _adW VWfS[^e S`V gbVSfWV [`Xad_Sf[a`.
KdSV[`Y [` ;S^^ST^W :g^^/:WSd ;a`fdSUfe (;::;) [`ha^hWe Z[YZ d[e]e4 [`hWefade SdW efda`Y^k
SVh[eWV fa ZShW S fZadagYZ g`VWdefS`V[`Y aX fZW bdaVgUf Se iW^^ Se fZW fWd_e S`V Ua`V[f[a`e
aX fZW ;::; TW[`Y aXXWdWV S`V/ad Ua`eg^f fZW[d Tda]Wde ad bdaXWee[a`S^ [`hWef_W`f SVh[eWde
TWXadW fdSV[`Y.
g`VWd^k[`Y SeeWf ([.W. VW^fS U^aeW fa a`W).
KZge, [X fZW g`VWd^k[`Y SeeWf [`UdWSeWe [`
hS^gW, S :g^^ ;::; i[fZ W`f[f^W_W`f dSf[a
aX * fa * YW`WdS^^k [`UdWSeWe [` hS^gW Tk
Sbbdaj[_SfW^k fZW eS_W S_ag`f iZWdWSe
S :WSd ;::; i[fZ W`f[f^W_W`f dSf[a aX *
fa * YW`WdS^^k VWUdWSeWe [` hS^gW Tk
Sbbdaj[_SfW^k fZW eS_W S_ag`f. KZ[e
bdabWdfk aXXWde [`hWefade S bdaVgUf iZ[UZ
fdSU]e fZW bd[UW _ahW_W`f aX fZW
g`VWd^k[`Y SeeWf _adW U^aeW^k S`V i[fZ
Z[YZWd bd[UW fdS`ebSdW`Uk fZS` ea_W afZWd
efdgUfgdWV bdaVgUfe. @aiWhWd, iZW` fZW
g`VWd^k[`Y SeeWf aX S ;::; [e fdSV[`Y Sf
S bd[UW U^aeW fa [fe ;S^^ Hd[UW, fZW UZS`YW
[` fZW hS^gW aX ;::; _Sk TW _adW ha^Sf[^W
S`V V[ebdabadf[a`SfW i[fZ fZW UZS`YW [`
fZW hS^gW aX fZW g`VWd^k[`Y SeeWf.
+. ;::; ZShW S ;S^^ Hd[UW S`V S ES`VSfadk
;S^^ >WSfgdW
>ad :g^^ Ua`fdSUfe, fZW ;S^^ Hd[UW _gef TW
W[fZWd WcgS^ fa ad STahW fZW Jfd[]W Hd[UW.
>ad :WSd Ua`fdSUfe, fZW ;S^^ Hd[UW _gef TW
WcgS^ fa ad TW^ai fZW Jfd[]W Hd[UW. AX fZW
g`VWd^k[`Y SeeWf'e bd[UW dWSUZWe fZW ;S^^
Hd[UW Sf S`k f[_W bd[ad fa Wjb[dk, fZW ;::;
i[^^ Wjb[dW WSd^k. KZW [eegWd _gef US^^ fZW
;::; S`V fdSV[`Y aX fZW ;::; i[^^ TW
fWd_[`SfWV [__WV[SfW^k. JgUZ S` WhW`f
[e dWXWddWV fa Se S ES`VSfadk ;S^^ =hW`f
(E;=).
,. ;SfWYad[We aX ;::;
KZWdW SdW fia USfWYad[We aX ;::;, `S_W^k
;SfWYadk F ;::; S`V ;SfWYadk I ;::;.
WhaI Are C88C?
;::; SdW S fkbW aX efdgUfgdWV bdaVgUf fZSf
fdSU]e fZW bWdXad_S`UW aX S` g`VWd^k[`Y
SeeWf i[fZagf dWcg[d[`Y [`hWefade fa bSk fZW
Xg^^ bd[UW dWcg[dWV fa ai` fZW SUfgS^ SeeWf.
KZWk SdW [eegWV W[fZWd Se :g^^ ad :WSd Ua`fdSUfe
i[fZ S X[jWV Wjb[dk VSfW, S^^ai[`Y [`hWefade
fa fS]W Tg^^[eZ ad TWSd[eZ bae[f[a`e a` fZW
g`VWd^k[`Y SeeWf. ;::; SdW [eegWV Tk S fZ[dV
bSdfk, gegS^ ^ k S` [ `hWef_W`f TS`],
[`VWbW`VW`f aX @C=j S`V aX fZW g`VWd^k[`Y
SeeWf.
;::; SdW [eegWV i[fZ fZW Ua`V[f[a` fZSf
Vgd[`Y fZW[d ^[XWebS` fZWk i[^^ TW US^^WV Tk
fZW [eegWde iZW` fZW bd[UW aX fZW g`VWd^k[`Y
SeeWf dWSUZWe S ^WhW^ (]`ai` Se fZW ";S^^
Hd[UW") ebWU[X[WV [` fZW ^[ef[`Y VaUg_W`f. AX
fZW ;S^^ Hd[UW [e dWSUZWV TWXadW Wjb[dk, fZW
;::; i[^^ Wjb[dW WSd^k S`V fZW fdSV[`Y aX
fZSf ;::; i[^^ TW fWd_[`SfWV [__WV[SfW^k.
KZW ebWU[X[WV Wjb[dk VSfW Xda_ fZW ^[ef[`Y
VaUg_W`f i[^^ `a ^a`YWd TW hS^[V.
;::; _Sk TW [eegWV i[fZ S ^[XWebS` aX fZdWW
_a`fZe fa X[hW kWSde S`V SdW eWff^WV [` USeZ
a`^k. KZWk SdW fdSVWV a` fZW USeZ _Sd]Wf
aX @C=j fZdagYZ fZW KZ[dV ?W`WdSf[a`
9gfa_Sf[U GdVWd ESfUZ[`Y S`V =jWUgf[a`
JkefW_ (9EJ/,) Vgd[`Y fZW _Sd]Wf'e fdSV[`Y
Zagde.
Ma|or FeaIures o! C88C
*. Hd[UW EahW_W`f aX ;::; KW`Ve fa KdSU]
fZW Hd[UW aX L`VWd^k[`Y 9eeWf ;^aeW^k
KZW bd[UW UZS`YWe aX S ;::; fW`V fa
Xa^^ai U^aeW^k fZW bd[UW UZS`YWe aX fZW
Disclaimer: KZW _SfWd[S^ Ua`fS[`WV ZWdW[` [e Xad YW`WdS^ [`Xad_Sf[a` a`^k S`V VaWe `af Ua`ef[fgfW S` [`h[fSf[a` ad aXXWd fa SUcg[dW, bgdUZSeW ad egTeUd[TW
Xad eWUgd[f[We. A`hWefade eZag^V dWSV fZW ^[ef[`Y VaUg_W`f USdWXg^^k, W`egdW fZSf fZWk g`VWdefS`V fZW `SfgdW aX S`V d[e]e SeeaU[SfWV i[fZ fZW[d [`hWef_W`f,
S`V iZWdW `WUWeeSdk Ua`eg^f fZW[d ai` X[`S`U[S^ SVh[eWde Se fa fZW eg[fST[^[fk aX fZW [`hWef_W`f [` ^[YZf aX fZW[d bSdf[Ug^Sd X[`S`U[S^ U[dUg_efS`UWe S`V
aT\WUf[hWe bd[ad fa _S][`Y S`k [`hWef_W`f VWU[e[a`.
egUZ Se ^[efWV [eegWde' S``ag`UW_W`fe
S`V ^[ef[`Y VaUg_W`fe SdW S^ea ShS[^ST^W
a` fZW @C=j iWTe[fW. A`hWefade US`
aTfS[` fZW dWS^-f[_W bd[UWe aX ;::; (S`V
afZWd @a`Y Ca`Y eWUgd[f[We) [X fZWk
egTeUd[TW fa fZW dWS^ f[_W VSfS.
9. How cah ihvesIors cohIacI LiquidiIy
Providers Io requesI quoIes?
9` [`hWefad US` dWcgWef S cgafW Xda_ S
D[cg[V[fk Hdah[VWd [X fZW ^[ef[`Y VaUg_W`f
efSfWe fZSf cgafWe SdW bdah[VWV gba`
dWcgWef. >ad ;::; i[fZ D[cg[V[fk
Hdah[VWde fZSf dWeba`V fa cgafW dWcgWefe,
fZW fW^WbZa`W `g_TWde aX fZW D[cg[V[fk
Hdah[VWde SdW ShS[^ST^W a` fZW ;::; efaU]
bSYW aX 9EJ/,, [` fZW ^[ef[`Y VaUg_W`f
S`V a` fZW @C=j iWTe[fW.
10. WhaI are Ihe obligaIiohs o! a
LiquidiIy Provider?
KZW ^[ef[`Y VaUg_W`f ^[efe fZW WjSUf
aT^[YSf[a`e aX fZW D[cg[V[fk Hdah[VWd. A`
`ad_S^ U[dUg_efS`UWe, D[cg[V[fk Hdah[VWde
eZag^V bdah[VW ^[cg[V[fk Xad ;::; [eegWe
fZdagYZ Ua`f[`gage cgafWe ad [` dWeba`eW
fa cgafW dWcgWefe Xda_ X[hW _[`gfWe SXfWd
fZW _Sd]Wf ZSe abW`WV g`f[^ fZW _Sd]Wf
U^aeWe. KZW D[cg[V[fk Hdah[VWd eZag^V
bdah[VW ^[cg[V[fk Xad Sf ^WSef *0 TaSdV ^afe
aX fZW ;::;. 9` [eegWd _gef ebWU[Xk fZW
_Sj[_g_ ebdWSV TWfiWW` fZW T[V S`V
aXXWd bd[UWe Xad [fe ;::; S`V fZW
_Sj[_g_ dWeba`eW f[_W [` fZW ^[ef[`Y
VaUg_W`f. L`VWd fZW cgafW dWcgWef
ekefW_, [`hWefade _Sk dWcgWef S cgafW
Xda_ fZW D[cg[V[fk Hdah[VWd.
11. How mahy LiquidiIy Providers cah ah
issuer appoihI !or each C88C issue?
9` [eegWd _Sk Sbba[`f V[XXWdW`f D[cg[V[fk
Hdah[VWde Xad V[XXWdW`f ;::; [eegWe.
@aiWhWd, Xad WSUZ ;::; [eegW fZWdW US`
a`^k TW a`W D[cg[V[fk Hdah[VWd.
12. Uhder whaI circumsIahces is Ihe
LiquidiIy Provider hoI required Io
provide liquidiIy?
KZW U[dUg_efS`UWe [` iZ[UZ fZW D[cg[V[fk
Hdah[VWd [e `af dWcg[dWV fa bdah[VW ^[cg[V[fk
SdW VWeUd[TWV [` fZW ^[ef[`Y VaUg_W`f.
A`hWefade eZag^V dWXWd fa fZW ^[ef[`Y
VaUg_W`f Xad VWfS[^e.
AI Ihe Iime o! issuahce
o L`VWd^k[`Y SeeWf JfaU] O
o Jbaf Hd[UW $**0
o ;S^^ Hd[UW (X[jWV Sf [eegW) $20
o Jfd[]W Hd[UW (X[jWV Sf [eegW) $20
o >g`V[`Y ;aefe $-..
o ;a`fdSUf =`f[f^W_W`f * 3 *
o =jb[dk *+ _a`fZe
KZWadWf[US^ bd[UW Sf [eegW3 $+-..
Q(Jbaf Hd[UW m Jfd[]W Hd[UW + >g`V[`Y ;aefe)/W`f[f^W_W`fR
MS^gW aX a`W TaSdV ^af (*00 eZSdWe) $+,-.0
=jS_b^W *3 ;SfWYadk F :g^^ ;a`fdSUf (N[fZagf IWe[VgS^ MS^gW)
+ ,
S_ag`f aX fZW eWff^W_W`f bd[UW Se
VWfWd_[`WV SUUadV[`Y fa fZW fWd_e [` fZW
^[ef[`Y VaUg_W`f ^Wee fZW Jfd[]W Hd[UW. KZW
eWff^W_W`f bd[UW aX S :g^^ Ua`fdSUf _gef
`af TW ^aiWd fZS` fZW _[`[_g_ fdSVW
bd[UW aX fZW g`VWd^k[`Y SeeWf ([.W. fZW ^aiWef
fdSVWV bd[UW) SXfWd fZW ES`VSfadk ;S^^
=hW`f S`V gb fa S`V [`U^gV[`Y fZW `Wjf
fdSV[`Y eWee[a`.
J[_[^Sd^k, iZW` S ;SfWYadk I :WSd Ua`fdSUf
[e US^^WV, fZW dWe[VgS^ hS^gW i[^^ TW fZW
bae[f[hW S_ag`f aX fZW Jfd[]W Hd[UW ^Wee
fZW eWff^W_W`f bd[UW Se VWfWd_[`WV
SUUadV[`Y fa fZW fWd_e [` fZW ^[ef[`Y
VaUg_W`f. KZW eWff^W_W`f bd[UW aX S :WSd
Ua`fdSUf _gef `af TW Z[YZWd fZS` fZW
_Sj[_g_ fdSVW bd[UW aX fZW g`VWd^k[`Y
SeeWf ([.W. fZW Z[YZWef fdSVWV bd[UW) SXfWd
fZW ES`VSfadk ;S^^ =hW`f S`V gb fa S`V
[`U^gV[`Y fZW `Wjf fdSV[`Y eWee[a`. >ad
fZ[e bgdbaeW, bdW-abW`[`Y eWee[a` S`V
_ad`[`Y eWee[a` SdW Ua`e[VWdWV Se a`W
fdSV[`Y eWee[a`. :gf, [` fZW SVhWdeW USeW
iZWdW fZW eWff^W_W`f bd[UW [e Sf ad YaWe
TWka`V fZW Jfd[]W Hd[UW, fZWdW _Sk `af TW
S`k dWe[VgS^ hS^gW.
Lligible Uhderlyihg AsseIs !or C88C
Issuahce
9f [`[f[S^ ^Sg`UZ, [eegWde US` Sbb^k fa [eegW
;::; a` fZW Xa^^ai[`Y g`VWd^k[`Y SeeWfe3
o @[YZ^k ^[cg[V @a`Y Ca`Y efaU]e ^[efWV a`
fZW =jUZS`YW3 @J:; @a^V[`Ye b^U,
@gfUZ[ea` NZS_baS DfV., HWfda;Z[`S ;a.
DfV., ;Z[`S EaT[^W (@a`Y Ca`Y) DfV. S`V
;ZWg`Y Ca`Y (@a^V[`Ye) DfV.4
o Kia @a`Y Ca`Y efaU] [`V[UWe3 @S`Y JW`Y
A`VWj S`V @S`Y JW`Y ;Z[`S =`fWdbd[eWe
A`VWj ([.W. @-eZSdWe A`VWj)4
o GhWdeWSe efaU]e S`V ahWdeWSe efaU] [`V[UWe4
o ;gddW`U[We4 S`V
o ;a__aV[f[We
EadW g`VWd^k[`Y SeeWfe _Sk TW SVVWV [` fZW
XgfgdW Xda_ f[_W fa f[_W egT\WUf fa
Ua`eg^fSf[a` i[fZ fZW JWUgd[f[We S`V >gfgdWe
;a__[ee[a`.
([) 9 ;SfWYadk F ;::; dWXWde fa S ;::;
iZWdW [fe ;S^^ Hd[UW [e WcgS^ fa [fe Jfd[]W
Hd[UW, S`V fZW ;::; Za^VWd i[^^ `af
dWUW[hW S`k USeZ bSk_W`f a`UW fZW bd[UW
aX fZW g`VWd^k[`Y SeeWf dWSUZWe ad YaWe
TWka`V fZW ;S^^ Hd[UW ([.W iZW` fZW
;::; [e US^^WV).
([[) 9 ;SfWYadk I ;::; dWXWde fa S ;::;
iZWdW [fe ;S^^ Hd[UW [e V[XXWdW`f Xda_ [fe
Jfd[]W Hd[UW, S`V fZW ;::; Za^VWd _Sk
dWUW[hW S e_S^^ S_ag`f aX USeZ bSk_W`f
(US^^WV "IWe[VgS^ MS^gW") iZW` fZW
;::; [e US^^WV. :gf [` fZW iadef USeW,
`a dWe[VgS^ hS^gW i[^^ TW bS[V Tk fZW
[eegWd. (eWW ba[`f . TW^ai Xad fZW
VWfWd_[`Sf[a` aX dWe[VgS^ hS^gW)
-. MS^gSf[a` Sf =jb[dk
;::; US` TW ZW^V g`f[^ _Sfgd[fk ([X `af
US^^WV TWXadW Wjb[dk) ad ea^V a` fZW JfaU]
=jUZS`YW (fZW =jUZS`YW) TWXadW Wjb[dk.
([) A` fZW USeW aX S :g^^ Ua`fdSUf, fZW USeZ
eWff^W_W`f S_ag`f Sf `ad_S^ Wjb[dk
i[^^ TW fZW bae[f[hW S_ag`f aX fZW
eWff^W_W`f bd[UW aX fZW g`VWd^k[`Y SeeWf
Se VWfWd_[`WV a` fZW hS^gSf[a` VSk ^Wee
fZW Jfd[]W Hd[UW.
([[) A` fZW USeW aX S :WSd Ua`fdSUf, fZW USeZ
eWff^W_W`f S_ag`f Sf `ad_S^ Wjb[dk
i[^^ TW fZW bae[f[hW S_ag`f aX fZW Jfd[]W
Hd[UW ^Wee fZW eWff^W_W`f bd[UW aX fZW
g`VWd^k[`Y SeeWf a` hS^gSf[a` VSk.
>ad ;::; i[fZ S @a`Y Ca`Y efaU] Se
g`VWd^k[`Y, fZW eWff^W_W`f bd[UW aX fZW
;::; i[^^ TW fZW U^ae[`Y bd[UW aX fZW
g`VWd^k[`Y a` fZW ^Sef fdSV[`Y VSk. >ad
;::; i[fZ S @a`Y Ca`Y efaU] [`VWj Se
g`VWd^k[`Y, fZW eWff^W_W`f ^WhW^ aX fZW
;::; i[^^ TW fZW eS_W [`VWj ^WhW^ Xad
eWff^[`Y fZSf Wjb[d[`Y [`VWj XgfgdW Ua`fdSUf.
KZWdW i[^^ TW `a USeZ eWff^W_W`f [X fZW
S_ag`fe US^Ug^SfWV g`VWd ([) S`V ([[) SdW
`WYSf[hW.
.. <WfWd_[`Sf[a` aX IWe[VgS^ MS^gW Xad
;SfWYadk I ;::;
NZW` S ;SfWYadk I :g^^ Ua`fdSUf [e US^^WV,
fZW dWe[VgS^ hS^gW i[^^ TW fZW bae[f[hW
I! SpoI Price !alls Io $90 (i.e. Ihe Call Price)
o ES`VSfadk ;S^^ =hW`f aUUgde
o KZW :g^^ ;a`fdSUf [e US^^WV S`V fdSV[`Y [e fWd_[`SfWV
o KZWdW i[^^ TW `a dWe[VgS^ bSk_W`f
o FWf ^aee i[^^ TW fZW ad[Y[`S^ [`hWef_W`f aX $+,-.0
I! hoI called be!ore expiry ahd aI expiry:
o Hd[UW aX JfaU] O3 $*,0
JWff^W_W`f S_ag`f aX S :g^^ ;a`fdSUf (JWff^W_W`f Hd[UW* m Jfd[]W Hd[UW)/=`f[f^W_W`f $-0
6 ($*,0 m $20)/*
* JWff^W_W`f Hd[UW [e fZW U^ae[`Y bd[UW aX JfaU] O a` fZW DSef KdSV[`Y <Sk
MS^gW aX a`W TaSdV ^af $-,000
FWf bdaX[f aX a`W TaSdV ^af $*,..0
(MS^gW aX fZW :g^^ ;a`fdSUf Sf Wjb[dk m Gd[Y[`S^ A`hWef_W`f) 6 $-,000 - $+,-.0
ISfW aX IWfgd` 6 $*,..0 / $+,-.0 /,
=jS_b^W +3 ;SfWYadk I :g^^ ;a`fdSUf (N[fZ IWe[VgS^ MS^gW)
AI Ihe Iime o! issuahce
o L`VWd^k[`Y SeeWf JfaU] O
o Jbaf Hd[UW $**0
o ;S^^ Hd[UW (X[jWV Sf [eegW) $2.
o Jfd[]W Hd[UW (X[jWV Sf [eegW) $20
o >g`V[`Y ;aefe $-..
o ;a`fdSUf =`f[f^W_W`f *3*
o =jb[dk *+ _a`fZe
KZWadWf[US^ bd[UW Sf [eegW3 $+-..
Q(Jbaf Hd[UW m Jfd[]W Hd[UW + >g`V[`Y ;aefe)/W`f[f^W_W`fR
MS^gW aX a`W TaSdV ^af (*00 eZSdWe) $+,-.0
How Do C88C Work?
KZW fZWadWf[US^ bd[UW aX S :g^^ ;a`fdSUf [e
YW`WdS^^k VWfWd_[`WV Tk fZW V[XXWdW`UW
TWfiWW` fZW ebaf bd[UW aX fZW g`VWd^k[`Y
SeeWf S`V fZW Jfd[]W Hd[UW aX fZW :g^^ ;a`fdSUf
b^ge Xg`V[`Y Uaefe, SXfWd SV\gefWV Xad
W`f[f^W_W`f. NZWdWSe Xad S :WSd ;a`fdSUf,
fZW fZWadWf[US^ bd[UW [e YW`WdS^^k VWfWd_[`WV
Tk fZW V[XXWdW`UW TWfiWW` fZW Jfd[]W Hd[UW
aX fZW :WSd ;a`fdSUf S`V fZW ebaf bd[UW aX
fZW g`VWd^k[`Y SeeWf b^ge Xg`V[`Y Uaefe, SXfWd
SV\gefWV Xad W`f[f^W_W`f.
>ad :g^^ Ua`fdSUfe, fZW ;S^^ Hd[UW US` TW WcgS^
fa ad Z[YZWd fZS` fZW Jfd[]W Hd[UW4 iZWdWSe
Xad :WSd Ua`fdSUfe, fZW ;S^^ Hd[UW US` TW WcgS^
fa ad ^aiWd fZS` fZW Jfd[]W Hd[UW. KZW
Xa^^ai[`Y WjS_b^W [^^gefdSfWe Zai S :g^^
Ua`fdSUf iad]e3
AI Ihe Iime o! issuahce
o L`VWd^k[`Y SeeWf JfaU] O
o Jbaf Hd[UW $**0
o ;S^^ Hd[UW (X[jWV Sf [eegW) $20
o Jfd[]W Hd[UW (X[jWV Sf [eegW) $20
o >g`V[`Y ;aefe $-..
o ;a`fdSUf =`f[f^W_W`f * 3 *
o =jb[dk *+ _a`fZe
KZWadWf[US^ bd[UW Sf [eegW3 $+-..
Q(Jbaf Hd[UW m Jfd[]W Hd[UW + >g`V[`Y ;aefe)/W`f[f^W_W`fR
MS^gW aX a`W TaSdV ^af (*00 eZSdWe) $+,-.0
=jS_b^W *3 ;SfWYadk F :g^^ ;a`fdSUf (N[fZagf IWe[VgS^ MS^gW)
+ ,
S_ag`f aX fZW eWff^W_W`f bd[UW Se
VWfWd_[`WV SUUadV[`Y fa fZW fWd_e [` fZW
^[ef[`Y VaUg_W`f ^Wee fZW Jfd[]W Hd[UW. KZW
eWff^W_W`f bd[UW aX S :g^^ Ua`fdSUf _gef
`af TW ^aiWd fZS` fZW _[`[_g_ fdSVW
bd[UW aX fZW g`VWd^k[`Y SeeWf ([.W. fZW ^aiWef
fdSVWV bd[UW) SXfWd fZW ES`VSfadk ;S^^
=hW`f S`V gb fa S`V [`U^gV[`Y fZW `Wjf
fdSV[`Y eWee[a`.
J[_[^Sd^k, iZW` S ;SfWYadk I :WSd Ua`fdSUf
[e US^^WV, fZW dWe[VgS^ hS^gW i[^^ TW fZW
bae[f[hW S_ag`f aX fZW Jfd[]W Hd[UW ^Wee
fZW eWff^W_W`f bd[UW Se VWfWd_[`WV
SUUadV[`Y fa fZW fWd_e [` fZW ^[ef[`Y
VaUg_W`f. KZW eWff^W_W`f bd[UW aX S :WSd
Ua`fdSUf _gef `af TW Z[YZWd fZS` fZW
_Sj[_g_ fdSVW bd[UW aX fZW g`VWd^k[`Y
SeeWf ([.W. fZW Z[YZWef fdSVWV bd[UW) SXfWd
fZW ES`VSfadk ;S^^ =hW`f S`V gb fa S`V
[`U^gV[`Y fZW `Wjf fdSV[`Y eWee[a`. >ad
fZ[e bgdbaeW, bdW-abW`[`Y eWee[a` S`V
_ad`[`Y eWee[a` SdW Ua`e[VWdWV Se a`W
fdSV[`Y eWee[a`. :gf, [` fZW SVhWdeW USeW
iZWdW fZW eWff^W_W`f bd[UW [e Sf ad YaWe
TWka`V fZW Jfd[]W Hd[UW, fZWdW _Sk `af TW
S`k dWe[VgS^ hS^gW.
Lligible Uhderlyihg AsseIs !or C88C
Issuahce
9f [`[f[S^ ^Sg`UZ, [eegWde US` Sbb^k fa [eegW
;::; a` fZW Xa^^ai[`Y g`VWd^k[`Y SeeWfe3
o @[YZ^k ^[cg[V @a`Y Ca`Y efaU]e ^[efWV a`
fZW =jUZS`YW3 @J:; @a^V[`Ye b^U,
@gfUZ[ea` NZS_baS DfV., HWfda;Z[`S ;a.
DfV., ;Z[`S EaT[^W (@a`Y Ca`Y) DfV. S`V
;ZWg`Y Ca`Y (@a^V[`Ye) DfV.4
o Kia @a`Y Ca`Y efaU] [`V[UWe3 @S`Y JW`Y
A`VWj S`V @S`Y JW`Y ;Z[`S =`fWdbd[eWe
A`VWj ([.W. @-eZSdWe A`VWj)4
o GhWdeWSe efaU]e S`V ahWdeWSe efaU] [`V[UWe4
o ;gddW`U[We4 S`V
o ;a__aV[f[We
EadW g`VWd^k[`Y SeeWfe _Sk TW SVVWV [` fZW
XgfgdW Xda_ f[_W fa f[_W egT\WUf fa
Ua`eg^fSf[a` i[fZ fZW JWUgd[f[We S`V >gfgdWe
;a__[ee[a`.
([) 9 ;SfWYadk F ;::; dWXWde fa S ;::;
iZWdW [fe ;S^^ Hd[UW [e WcgS^ fa [fe Jfd[]W
Hd[UW, S`V fZW ;::; Za^VWd i[^^ `af
dWUW[hW S`k USeZ bSk_W`f a`UW fZW bd[UW
aX fZW g`VWd^k[`Y SeeWf dWSUZWe ad YaWe
TWka`V fZW ;S^^ Hd[UW ([.W iZW` fZW
;::; [e US^^WV).
([[) 9 ;SfWYadk I ;::; dWXWde fa S ;::;
iZWdW [fe ;S^^ Hd[UW [e V[XXWdW`f Xda_ [fe
Jfd[]W Hd[UW, S`V fZW ;::; Za^VWd _Sk
dWUW[hW S e_S^^ S_ag`f aX USeZ bSk_W`f
(US^^WV "IWe[VgS^ MS^gW") iZW` fZW
;::; [e US^^WV. :gf [` fZW iadef USeW,
`a dWe[VgS^ hS^gW i[^^ TW bS[V Tk fZW
[eegWd. (eWW ba[`f . TW^ai Xad fZW
VWfWd_[`Sf[a` aX dWe[VgS^ hS^gW)
-. MS^gSf[a` Sf =jb[dk
;::; US` TW ZW^V g`f[^ _Sfgd[fk ([X `af
US^^WV TWXadW Wjb[dk) ad ea^V a` fZW JfaU]
=jUZS`YW (fZW =jUZS`YW) TWXadW Wjb[dk.
([) A` fZW USeW aX S :g^^ Ua`fdSUf, fZW USeZ
eWff^W_W`f S_ag`f Sf `ad_S^ Wjb[dk
i[^^ TW fZW bae[f[hW S_ag`f aX fZW
eWff^W_W`f bd[UW aX fZW g`VWd^k[`Y SeeWf
Se VWfWd_[`WV a` fZW hS^gSf[a` VSk ^Wee
fZW Jfd[]W Hd[UW.
([[) A` fZW USeW aX S :WSd Ua`fdSUf, fZW USeZ
eWff^W_W`f S_ag`f Sf `ad_S^ Wjb[dk
i[^^ TW fZW bae[f[hW S_ag`f aX fZW Jfd[]W
Hd[UW ^Wee fZW eWff^W_W`f bd[UW aX fZW
g`VWd^k[`Y SeeWf a` hS^gSf[a` VSk.
>ad ;::; i[fZ S @a`Y Ca`Y efaU] Se
g`VWd^k[`Y, fZW eWff^W_W`f bd[UW aX fZW
;::; i[^^ TW fZW U^ae[`Y bd[UW aX fZW
g`VWd^k[`Y a` fZW ^Sef fdSV[`Y VSk. >ad
;::; i[fZ S @a`Y Ca`Y efaU] [`VWj Se
g`VWd^k[`Y, fZW eWff^W_W`f ^WhW^ aX fZW
;::; i[^^ TW fZW eS_W [`VWj ^WhW^ Xad
eWff^[`Y fZSf Wjb[d[`Y [`VWj XgfgdW Ua`fdSUf.
KZWdW i[^^ TW `a USeZ eWff^W_W`f [X fZW
S_ag`fe US^Ug^SfWV g`VWd ([) S`V ([[) SdW
`WYSf[hW.
.. <WfWd_[`Sf[a` aX IWe[VgS^ MS^gW Xad
;SfWYadk I ;::;
NZW` S ;SfWYadk I :g^^ Ua`fdSUf [e US^^WV,
fZW dWe[VgS^ hS^gW i[^^ TW fZW bae[f[hW
I! SpoI Price !alls Io $90 (i.e. Ihe Call Price)
o ES`VSfadk ;S^^ =hW`f aUUgde
o KZW :g^^ ;a`fdSUf [e US^^WV S`V fdSV[`Y [e fWd_[`SfWV
o KZWdW i[^^ TW `a dWe[VgS^ bSk_W`f
o FWf ^aee i[^^ TW fZW ad[Y[`S^ [`hWef_W`f aX $+,-.0
I! hoI called be!ore expiry ahd aI expiry:
o Hd[UW aX JfaU] O3 $*,0
JWff^W_W`f S_ag`f aX S :g^^ ;a`fdSUf (JWff^W_W`f Hd[UW* m Jfd[]W Hd[UW)/=`f[f^W_W`f $-0
6 ($*,0 m $20)/*
* JWff^W_W`f Hd[UW [e fZW U^ae[`Y bd[UW aX JfaU] O a` fZW DSef KdSV[`Y <Sk
MS^gW aX a`W TaSdV ^af $-,000
FWf bdaX[f aX a`W TaSdV ^af $*,..0
(MS^gW aX fZW :g^^ ;a`fdSUf Sf Wjb[dk m Gd[Y[`S^ A`hWef_W`f) 6 $-,000 - $+,-.0
ISfW aX IWfgd` 6 $*,..0 / $+,-.0 /,
=jS_b^W +3 ;SfWYadk I :g^^ ;a`fdSUf (N[fZ IWe[VgS^ MS^gW)
AI Ihe Iime o! issuahce
o L`VWd^k[`Y SeeWf JfaU] O
o Jbaf Hd[UW $**0
o ;S^^ Hd[UW (X[jWV Sf [eegW) $2.
o Jfd[]W Hd[UW (X[jWV Sf [eegW) $20
o >g`V[`Y ;aefe $-..
o ;a`fdSUf =`f[f^W_W`f *3*
o =jb[dk *+ _a`fZe
KZWadWf[US^ bd[UW Sf [eegW3 $+-..
Q(Jbaf Hd[UW m Jfd[]W Hd[UW + >g`V[`Y ;aefe)/W`f[f^W_W`fR
MS^gW aX a`W TaSdV ^af (*00 eZSdWe) $+,-.0
How Do C88C Work?
KZW fZWadWf[US^ bd[UW aX S :g^^ ;a`fdSUf [e
YW`WdS^^k VWfWd_[`WV Tk fZW V[XXWdW`UW
TWfiWW` fZW ebaf bd[UW aX fZW g`VWd^k[`Y
SeeWf S`V fZW Jfd[]W Hd[UW aX fZW :g^^ ;a`fdSUf
b^ge Xg`V[`Y Uaefe, SXfWd SV\gefWV Xad
W`f[f^W_W`f. NZWdWSe Xad S :WSd ;a`fdSUf,
fZW fZWadWf[US^ bd[UW [e YW`WdS^^k VWfWd_[`WV
Tk fZW V[XXWdW`UW TWfiWW` fZW Jfd[]W Hd[UW
aX fZW :WSd ;a`fdSUf S`V fZW ebaf bd[UW aX
fZW g`VWd^k[`Y SeeWf b^ge Xg`V[`Y Uaefe, SXfWd
SV\gefWV Xad W`f[f^W_W`f.
>ad :g^^ Ua`fdSUfe, fZW ;S^^ Hd[UW US` TW WcgS^
fa ad Z[YZWd fZS` fZW Jfd[]W Hd[UW4 iZWdWSe
Xad :WSd Ua`fdSUfe, fZW ;S^^ Hd[UW US` TW WcgS^
fa ad ^aiWd fZS` fZW Jfd[]W Hd[UW. KZW
Xa^^ai[`Y WjS_b^W [^^gefdSfWe Zai S :g^^
Ua`fdSUf iad]e3
- .
I! SpoI Price !alls Io $95 (i.e. Ihe Call Price)
o ES`VSfadk ;S^^ =hW`f aUUgde
IWe[VgS^ hS^gW aX fZW :g^^ ;a`fdSUf Sf ;S^^3
(JWff^W_W`f Hd[UW* m Jfd[]W Hd[UW)/=`f[f^W_W`f 6 ($2- m $20)/*
* JWff^W_W`f bd[UW Se VWfWd_[`WV SUUadV[`Y fa fZW fWd_e [` fZW ^[ef[`Y VaUg_W`f
iZ[UZ _gef `af TW ^aiWd fZS` fZW E[`[_g_ KdSVW Hd[UW aX fZW g`VWd^k[`Y SeeWf
SXfWd fZW ES`VSfadk ;S^^ =hW`f S`V gb fa S`V [`U^gV[`Y fZW `Wjf fdSV[`Y eWee[a`.
Af [e Seeg_WV fa TW $2- [` fZ[e WjS_b^W. AX eWff^W_W`f bd[UW [e VWfWd_[`WV fa TW
WcgS^ fa ad ^Wee fZS` fZW Jfd[]W Hd[UW, `a dWe[VgS^ bSk_W`f i[^^ TW dWUW[hWV. KZW
fafS^ ^aee i[^^ TW fZW ad[Y[`S^ [`hWef_W`f S_ag`f.
MS^gW aX a`W TaSdV ^af
FWf ^aee aX a`W TaSdV ^af ($+,-.0 - $-00)
$-
$-00
$+,0.0
I! hoI called be!ore expiry, Ihe payo!! will be Ihe same as ih Lxample 1 above:
o Hd[UW aX JfaU] O3 $*,0
JWff^W_W`f S_ag`f aX S :g^^ ;a`fdSUf3 (JWff^W_W`f Hd[UW* m Jfd[]W Hd[UW)/=`f[f^W_W`f $-0
6 ($*,0 m $20)/*
* JWff^W_W`f Hd[UW [e fZW U^ae[`Y bd[UW aX JfaU] O a` fZW DSef KdSV[`Y <Sk
MS^gW aX a`W TaSdV ^af $-,000
FWf bdaX[f aX a`W TaSdV ^af (MS^gW aX fZW :g^^ ;a`fdSUf Sf Wjb[dk m $*,..0
Gd[Y[`S^ A`hWef_W`f) 6 $-,000 - $+,-.0
ISfW aX IWfgd` /,
6 $*,..0 / $+,-.0
FafW3 fZW US^Ug^Sf[a` aX bdaX[f S`V ^aee [` fZW fia WjS_b^We STahW ZShW `af fS]W` [`fa SUUag`f fZW Ua__[ee[a` S`V afZWd fdS`eSUf[a` Uaefe.
Fuhdihg cosIs
KZW [eegW bd[UW aX S ;::; [`U^gVWe Xg`V[`Y
Uaef S`V [eegWde SdW dWcg[dWV fa ebWU[Xk fZW
Xad_g^S Xad US^Ug^Sf[`Y fZW Xg`V[`Y Uaefe aX
fZW[d ;::; Sf ^Sg`UZ [` fZW ^[ef[`Y VaUg_W`fe.
KZW Xg`V[`Y Uaef aX S ;::; [`U^gVWe fZW
[eegWd'e X[`S`U[`Y/efaU] Taddai[`Y Uaefe SXfWd
SV\gef_W`f Xad WjbWUfWV adV[`Sdk V[h[VW`V
aX fZW efaU] ([X fZW g`VWd^k[`Y [e S @a`Y Ca`Y
efaU]) S`V fZW [eegWd'e bdaX[f _SdY[`. KZWeW
[fW_e X^gUfgSfW Xda_ f[_W fa f[_W. KZW
Xg`V[`Y Uaefe SdW `af X[jWV fZdagYZagf fZW
fW`gdW aX fZW Ua`fdSUfe. A` YW`WdS^, fZW
^a`YWd fZW VgdSf[a` aX fZW ;::;, fZW Z[YZWd
fZW Xg`V[`Y Uaefe i[^^ TW bS[V gbXda`f. KZW
Xg`V[`Y Uaefe VWU^[`W ahWd f[_W Se fZW ;::;
_ahWe faiSdVe Wjb[dk. A`hWefade SdW SVh[eWV
fa Ua_bSdW fZW Xg`V[`Y Uaefe aX V[XXWdW`f
[eegWde Xad ;::; i[fZ e[_[^Sd g`VWd^k[`Y SeeWfe
S`V fWd_e.
Risks Ihvolved ih 1radihg C88C
MahdaIory call
;::; SdW `af eg[fST^W Xad S^^ [`hWefade S`V
[`hWefade eZag^V Ua`e[VWd fZW[d d[e] SbbWf[fW
bd[ad fa fdSV[`Y. 9 ;::; _Sk TW US^^WV Tk
fZW [eegWd iZW` fZW bd[UW aX fZW g`VWd^k[`Y
SeeWf Z[fe fZW ;S^^ Hd[UW S`V fZSf ;::; i[^^
Wjb[dW WSd^k. HSkaXX Xad ;SfWYadk F ;::;
i[^^ TW lWda iZW` fZWk Wjb[dW WSd^k. NZW`
;SfWYadk I ;::; Wjb[dW WSd^k fZW Za^VWd _Sk
dWUW[hW S e_S^^ S_ag`f aX IWe[VgS^ MS^gW
bSk_W`f, Tgf fZWdW _Sk TW `a IWe[VgS^ MS^gW
bSk_W`f [` SVhWdeW e[fgSf[a`e.
G`UW fZW ;::; [e US^^WV, WhW` fZagYZ fZW
g`VWd^k[`Y SeeWf _Sk Tag`UW TSU] [` fZW
d[YZf V[dWUf[a`, fZW ;::; iZ[UZ ZSe TWW`
US^^WV i[^^ `af TW dWh[hWV S`V [`hWefade i[^^
`af TW ST^W fa bdaX[f Xda_ fZW Tag`UW-TSU].
Cearihg e!!ecIs
J[`UW S ;::; [e S ^WhWdSYWV bdaVgUf, fZW
bWdUW`fSYW UZS`YW [` fZW bd[UW aX S ;::;
[e YdWSfWd Ua_bSdWV i[fZ fZSf aX fZW
g`VWd^k[`Y SeeWf. A`hWefade _Sk egXXWd Z[YZWd
^aeeWe [` bWdUW`fSYW fWd_e [X fZWk WjbWUf fZW
bd[UW aX fZW g`VWd^k[`Y SeeWf fa _ahW a`W
iSk Tgf [f _ahWe [` fZW abbae[fW V[dWUf[a`.
LimiIed li!e
9 ;::; ZSe S ^[_[fWV ^[XWebS` aX fZdWW _a`fZe
fa X[hW kWSde. KZW ^[XW aX S ;::; _Sk TW
eZadfWd [X US^^WV TWXadW fZW X[jWV Wjb[dk VSfW.
KZW bd[UW aX S ;::; X^gUfgSfWe i[fZ fZW
UZS`YWe [` fZW bd[UW aX fZW g`VWd^k[`Y SeeWf
Xda_f[_W fa f[_W S`V _Sk TWUa_W iadfZ^Wee
SXfWd Wjb[dk S`V [` UWdfS[` USeWe, WhW` TWXadW
fZW `ad_S^ Wjb[dk [X fZW ;::; ZSe TWW` US^^WV
WSd^k.
MovemehI wiIh uhderlyihg asseI
9^fZagYZ fZW bd[UW UZS`YWe aX S ;::; fW`Ve
fa Xa^^ai U^aeW^k fZW bd[UW UZS`YWe aX [fe
g`VWd^k[`Y SeeWf, Tgf [` ea_W e[fgSf[a`e [f
_Sk `af ([.W. VW^fS _Sk `af S^iSke TW U^aeW
fa a`W). Hd[UWe aX ;::; SdW SXXWUfWV Tk S
`g_TWd aX XSUfade, [`U^gV[`Y [fe ai` VW_S`V
S`V egbb^k, Xg`V[`Y Uaefe S`V f[_W fa Wjb[dk.
LiquidiIy
9^fZagYZ ;::; ZShW ^[cg[V[fk bdah[VWde, fZWdW
[e `a YgSdS`fWW fZSf [`hWefade i[^^ TW ST^W
fa Tgk/eW^^ ;::; Sf fZW[d fSdYWf bd[UWe S`k
f[_W fZWk i[eZ.
Fuhdihg cosIs
KZW [eegW bd[UW aX S ;::; [`U^gVWe Xg`V[`Y
Uaefe UZSdYWV gbXda`f Xad fZW W`f[dW bWd[aV
Xda_ ^Sg`UZ fa `ad_S^ Wjb[dk. NZW` S ;::;
[e US^^WV, fZW ;::; Za^VWde ([`hWefade) i[^^
^aeW fZW Xg`V[`Y Uaef Xad fZW dW_S[`[`Y bWd[aV
WhW` fZagYZ fZW SUfgS^ bWd[aV aX Xg`V[`Y
Xad fZW ;::; fgd`e agf fa TW eZadfWd.
A`hWefade eZag^V S^ea `afW fZSf fZW Xg`V[`Y
Uaefe aX S ;::; SXfWd ^Sg`UZ _Sk hSdk Vgd[`Y
[fe ^[XW.
1radihg o! C88C close Io Call Price
NZW` fZW g`VWd^k[`Y SeeWf [e fdSV[`Y U^aeW
fa fZW ;S^^ Hd[UW, fZW bd[UW aX S ;::; _Sk
TW _adW ha^Sf[^W i[fZ i[VWd ebdWSVe S`V
g`UWdfS[` ^[cg[V[fk. ;::; _Sk TW US^^WV Sf
S`k f[_W S`V fdSV[`Y i[^^ fWd_[`SfW Se S
dWeg^f.
@aiWhWd, fZW fdSVW [`bgffWV Tk fZW [`hWefad
_Sk ef[^^ TW WjWUgfWV S`V Ua`X[d_WV Tk fZW
[`hWefade SXfWd fZW E;= e[`UW fZWdW _Sk TW
ea_W f[_W ^SbeW TWfiWW` fZW ES`VSfadk
;S^^ =hW`f f[_W S`V egebW`e[a` aX fZW ;::;
fdSV[`Y. 9`k fdSVWe WjWUgfWV SXfWd fZW E;=
i[^^ `af TW dWUaY`[eWV S`V i[^^ TW US`UW^^WV.
KZWdWXadW, [`hWefade eZag^V TW SiSdW aX fZW
d[e] S`V agYZf fa Sbb^k ebWU[S^ USgf[a` iZW`
fZW ;::; [e fdSV[`Y U^aeW fa fZW ;S^^ Hd[UW.
1radihg C88C oh Ihe Lxchahge
D[]W efaU]e S`V afZWd eWUgd[f[We, ;::; SdW
fdSVWV a` 9EJ/, aX fZW =jUZS`YW Vgd[`Y
dWYg^Sd fdSV[`Y Zagde.
9 ;::; ^[efWV a` fZW =jUZS`YW US` TW
[VW`f[X[WV Tk fZW =`Y^[eZ eZadf `S_W See[Y`WV
fa [f, iZ[UZ [`V[USfWe ea_W aX fZW TSe[U
XWSfgdWe aX fZW ;::; (fZ[e Sbb^[We fa fZW
=`Y^[eZ efaU] eZadf `S_W a`^k).
KZW ^[ef[`Y VaUg_W`f aX S ;::; Ua`fS[`e
_adW VWfS[^e S`V [`hWefade SdW efda`Y^k SVh[eWV
fa dWXWd fa [f Xad [`Xad_Sf[a` STagf S bSdf[Ug^Sd
;::;, ad fa Ua`eg^f fZW[d Tda]Wde. D[ef[`Y
VaUg_W`fe Xad ;::; SdW ShS[^ST^W a` fZW
@C=j iWTe[fW (iii.Z]Wj.Ua_.Z]/UTTU).
xxxx ZZ# XXXXX N C YYMM A
FS_W aX L`VWd^k[`Y 9eeWf
(W.Y. @J:; ad @J;=A)
F 6 Fa IWe[VgS^ MS^gW
I 6 N[fZ IWe[VgS^ MS^gW
=jb[dk PWSd
S`V Ea`fZ
JfaU] ;aVW
AeegWd'e
JZadf FS_W
JWd[S^ Fg_TWd Xad
>gdfZWd AeegW ;::;
; 6 :g^^
H 6 :WSd
- .
G[ Oedi Lg^XZ [Vaah id -<8 .^1Z1 i]Z AVaa Lg^XZ/
o ES`VSfadk ;S^^ =hW`f aUUgde
IWe[VgS^ hS^gW aX fZW :g^^ ;a`fdSUf Sf ;S^^3
vJWff^W_W`f Hd[UWx m Jfd[]W Hd[UWw}=`f[f^W_W`f 6 vs2- m s2~w}*
x JWff^W_W`f bd[UW Se VWfWd_[`WV SUUadV[`Y fa fZW fWd_e [` fZW ^[ef[`Y VaUg_W`f
iZ[UZ _gef `af TW ^aiWd fZS` fZW E[`[_g_ KdSVW Hd[UW aX fZW g`VWd^k[`Y SeeWf
SXfWd fZW ES`VSfadk ;S^^ =hW`f S`V gb fa S`V [`U^gV[`Y fZW `Wjf fdSV[`Y eWee[a`|
Af [e Seeg_WV fa TW s2- [` fZ[e WjS_b^W| AX eWff^W_W`f bd[UW [e VWfWd_[`WV fa TW
WcgS^ fa ad ^Wee fZS` fZW Jfd[]W Hd[UWz `a dWe[VgS^ bSk_W`f i[^^ TW dWUW[hWV| KZW
fafS^ ^aee i[^^ TW fZW ad[Y[`S^ [`hWef_W`f S_ag`f|
MS^gW aX a`W TaSdV ^af
FWf ^aee aX a`W TaSdV ^af vs+z-.~ { s-~~w
s-
s-~~
s+z~.~
G[ cdi XVaaZY WZ[dgZ Zme^gn0 i]Z eVnd[[ l^aa WZ i]Z hVbZ Vh ^c CmVbeaZ 4 VWdkZ=
o Hd[UW aX JfaU] O3 s*,~
JWff^W_W`f S_ag`f aX S :g^^ ;a`fdSUf3 vJWff^W_W`f Hd[UWx m Jfd[]W Hd[UWw}=`f[f^W_W`f s-~
6 vs*,~ m s2~w}*
x JWff^W_W`f Hd[UW [e fZW U^ae[`Y bd[UW aX JfaU] O a` fZW DSef KdSV[`Y <Sk
MS^gW aX a`W TaSdV ^af s-z~~~
FWf bdaX[f aX a`W TaSdV ^af vMS^gW aX fZW :g^^ ;a`fdSUf Sf Wjb[dk m s*z..~
Gd[Y[`S^ A`hWef_W`fw 6 s-z~~~ { s+z-.~
ISfW aX IWfgd` /,t
6 s*z..~ } s+z-.~
FafW3 fZW US^Ug^Sf[a` aX bdaX[f S`V ^aee [` fZW fia WjS_b^We STahW ZShW `af fS]W` [`fa SUUag`f fZW Ua__[ee[a` S`V afZWd fdS`eSUf[a` Uaefe|
DjcY^c\ Xdhih
KZW [eegW bd[UW aX S ;::; [`U^gVWe Xg`V[`Y
Uaef S`V [eegWde SdW dWcg[dWV fa ebWU[Xk fZW
Xad_g^S Xad US^Ug^Sf[`Y fZW Xg`V[`Y Uaefe aX
fZW[d ;::; Sf ^Sg`UZ [` fZW ^[ef[`Y VaUg_W`fe|
KZW Xg`V[`Y Uaef aX S ;::; [`U^gVWe fZW
[eegWdue X[`S`U[`Y}efaU] Taddai[`Y Uaefe SXfWd
SV\gef_W`f Xad WjbWUfWV adV[`Sdk V[h[VW`V
aX fZW efaU] v[X fZW g`VWd^k[`Y [e S @a`Y Ca`Y
efaU]w S`V fZW [eegWdue bdaX[f _SdY[`| KZWeW
[fW_e X^gUfgSfW Xda_ f[_W fa f[_W| KZW
Xg`V[`Y Uaefe SdW `af X[jWV fZdagYZagf fZW
fW`gdW aX fZW Ua`fdSUfe| A` YW`WdS^z fZW
^a`YWd fZW VgdSf[a` aX fZW ;::;z fZW Z[YZWd
fZW Xg`V[`Y Uaefe i[^^ TW bS[V gbXda`f| KZW
Xg`V[`Y Uaefe VWU^[`W ahWd f[_W Se fZW ;::;
_ahWe faiSdVe Wjb[dk| A`hWefade SdW SVh[eWV
fa Ua_bSdW fZW Xg`V[`Y Uaefe aX V[XXWdW`f
[eegWde Xad ;::; i[fZ e[_[^Sd g`VWd^k[`Y SeeWfe
S`V fWd_e|
N^h`h GckdakZY ^c PgVY^c\ A@@A
JVcYVidgn XVaa
;::; SdW `af eg[fST^W Xad S^^ [`hWefade S`V
[`hWefade eZag^V Ua`e[VWd fZW[d d[e] SbbWf[fW
bd[ad fa fdSV[`Y| 9 ;::; _Sk TW US^^WV Tk
fZW [eegWd iZW` fZW bd[UW aX fZW g`VWd^k[`Y
SeeWf Z[fe fZW ;S^^ Hd[UW S`V fZSf ;::; i[^^
Wjb[dW WSd^k| HSkaXX Xad ;SfWYadk F ;::;
i[^^ TW lWda iZW` fZWk Wjb[dW WSd^k| NZW`
;SfWYadk I ;::; Wjb[dW WSd^k fZW Za^VWd _Sk
dWUW[hW S e_S^^ S_ag`f aX IWe[VgS^ MS^gW
bSk_W`fz Tgf fZWdW _Sk TW `a IWe[VgS^ MS^gW
bSk_W`f [` SVhWdeW e[fgSf[a`e|
G`UW fZW ;::; [e US^^WVz WhW` fZagYZ fZW
g`VWd^k[`Y SeeWf _Sk Tag`UW TSU] [` fZW
d[YZf V[dWUf[a`z fZW ;::; iZ[UZ ZSe TWW`
US^^WV i[^^ `af TW dWh[hWV S`V [`hWefade i[^^
`af TW ST^W fa bdaX[f Xda_ fZW Tag`UW{TSU]|
EZVg^c\ Z[[ZXih
J[`UW S ;::; [e S ^WhWdSYWV bdaVgUfz fZW
bWdUW`fSYW UZS`YW [` fZW bd[UW aX S ;::;
[e YdWSfWd Ua_bSdWV i[fZ fZSf aX fZW
g`VWd^k[`Y SeeWf| A`hWefade _Sk egXXWd Z[YZWd
^aeeWe [` bWdUW`fSYW fWd_e [X fZWk WjbWUf fZW
bd[UW aX fZW g`VWd^k[`Y SeeWf fa _ahW a`W
iSk Tgf [f _ahWe [` fZW abbae[fW V[dWUf[a`|
I^b^iZY a^[Z
9 ;::; ZSe S ^[_[fWV ^[XWebS` aX fZdWW _a`fZe
fa X[hW kWSde| KZW ^[XW aX S ;::; _Sk TW
eZadfWd [X US^^WV TWXadW fZW X[jWV Wjb[dk VSfW|
KZW bd[UW aX S ;::; X^gUfgSfWe i[fZ fZW
UZS`YWe [` fZW bd[UW aX fZW g`VWd^k[`Y SeeWf
Xda_f[_W fa f[_W S`V _Sk TWUa_W iadfZ^Wee
SXfWd Wjb[dk S`V [` UWdfS[` USeWez WhW` TWXadW
fZW `ad_S^ Wjb[dk [X fZW ;::; ZSe TWW` US^^WV
WSd^k|
JdkZbZci l^i] jcYZgan^c\ VhhZi
9^fZagYZ fZW bd[UW UZS`YWe aX S ;::; fW`Ve
fa Xa^^ai U^aeW^k fZW bd[UW UZS`YWe aX [fe
g`VWd^k[`Y SeeWfz Tgf [` ea_W e[fgSf[a`e [f
_Sk `af v[|W| VW^fS _Sk `af S^iSke TW U^aeW
fa a`Ww| Hd[UWe aX ;::; SdW SXXWUfWV Tk S
`g_TWd aX XSUfadez [`U^gV[`Y [fe ai` VW_S`V
S`V egbb^kz Xg`V[`Y Uaefe S`V f[_W fa Wjb[dk|
I^fj^Y^in
9^fZagYZ ;::; ZShW ^[cg[V[fk bdah[VWdez fZWdW
[e `a YgSdS`fWW fZSf [`hWefade i[^^ TW ST^W
fa Tgk}eW^^ ;::; Sf fZW[d fSdYWf bd[UWe S`k
f[_W fZWk i[eZ|
DjcY^c\ Xdhih
KZW [eegW bd[UW aX S ;::; [`U^gVWe Xg`V[`Y
Uaefe UZSdYWV gbXda`f Xad fZW W`f[dW bWd[aV
Xda_ ^Sg`UZ fa `ad_S^ Wjb[dk| NZW` S ;::;
[e US^^WVz fZW ;::; Za^VWde v[`hWefadew i[^^
^aeW fZW Xg`V[`Y Uaef Xad fZW dW_S[`[`Y bWd[aV
WhW` fZagYZ fZW SUfgS^ bWd[aV aX Xg`V[`Y
Xad fZW ;::; fgd`e agf fa TW eZadfWd|
A`hWefade eZag^V S^ea `afW fZSf fZW Xg`V[`Y
Uaefe aX S ;::; SXfWd ^Sg`UZ _Sk hSdk Vgd[`Y
[fe ^[XW|
PgVY^c\ d[ A@@A XadhZ id AVaa Lg^XZ
NZW` fZW g`VWd^k[`Y SeeWf [e fdSV[`Y U^aeW
fa fZW ;S^^ Hd[UWz fZW bd[UW aX S ;::; _Sk
TW _adW ha^Sf[^W i[fZ i[VWd ebdWSVe S`V
g`UWdfS[` ^[cg[V[fk| ;::; _Sk TW US^^WV Sf
S`k f[_W S`V fdSV[`Y i[^^ fWd_[`SfW Se S
dWeg^f|
@aiWhWdz fZW fdSVW [`bgffWV Tk fZW [`hWefad
_Sk ef[^^ TW WjWUgfWV S`V Ua`X[d_WV Tk fZW
[`hWefade SXfWd fZW E;= e[`UW fZWdW _Sk TW
ea_W f[_W ^SbeW TWfiWW` fZW ES`VSfadk
;S^^ =hW`f f[_W S`V egebW`e[a` aX fZW ;::;
fdSV[`Y| 9`k fdSVWe WjWUgfWV SXfWd fZW E;=
i[^^ `af TW dWUaY`[eWV S`V i[^^ TW US`UW^^WV|
KZWdWXadWz [`hWefade eZag^V TW SiSdW aX fZW
d[e] S`V agYZf fa Sbb^k ebWU[S^ USgf[a` iZW`
fZW ;::; [e fdSV[`Y U^aeW fa fZW ;S^^ Hd[UW|
PgVY^c\ A@@A dc i]Z CmX]Vc\Z
D[]W efaU]e S`V afZWd eWUgd[f[Wez ;::; SdW
fdSVWV a` 9EJ}, aX fZW =jUZS`YW Vgd[`Y
dWYg^Sd fdSV[`Y Zagde|
9 ;::; ^[efWV a` fZW =jUZS`YW US` TW
[VW`f[X[WV Tk fZW =`Y^[eZ eZadf `S_W See[Y`WV
fa [fz iZ[UZ [`V[USfWe ea_W aX fZW TSe[U
XWSfgdWe aX fZW ;::; vfZ[e Sbb^[We fa fZW
=`Y^[eZ efaU] eZadf `S_W a`^kw|
KZW ^[ef[`Y VaUg_W`f aX S ;::; Ua`fS[`e
_adW VWfS[^e S`V [`hWefade SdW efda`Y^k SVh[eWV
fa dWXWd fa [f Xad [`Xad_Sf[a` STagf S bSdf[Ug^Sd
;::;z ad fa Ua`eg^f fZW[d Tda]Wde| D[ef[`Y
VaUg_W`fe Xad ;::; SdW ShS[^ST^W a` fZW
@C=j iWTe[fW viii|Z]Wj|Ua_|Z]}UTTUw|
mmmm UU, SSSSS K A TTJJ ?
FS_W aX L`VWd^k[`Y 9eeWf
vW|Y| @J:; ad @J;=Aw
F 6 Fa IWe[VgS^ MS^gW
I 6 N[fZ IWe[VgS^ MS^gW
=jb[dk PWSd
S`V Ea`fZ
JfaU] ;aVW
AeegWdue
JZadf FS_W
JWd[S^ Fg_TWd Xad
>gdfZWd AeegW ;::;
; 6 :g^^
H 6 :WSd
D 6 DSef KdSV[`Y <Sk
= 6 =jb[dk <Sk
M 6 MS^gSf[a` <Sk/Hd[UW <WfWd_[`Sf[a` <Sk
M* 6 <WfWd_[`Sf[a` aX dWe[VgS^ hS^gW Xad ;SfWYadk I ;::; [` fZW SXfWd`aa`
eWee[a` aX <Sk ., [X E;= aUUgde [` fZW _ad`[`Y eWee[a` aX <Sk .
(E;=*)
M+ 6 <WfWd_[`Sf[a` aX dWe[VgS^ hS^gW Xad ;SfWYadk I ;::; [` fZW _ad`[`Y
eWee[a` aX <Sk /, [X E;= aUUgde [` fZW SXfWd`aa` eWee[a` aX <Sk .
(E;=+)
H 6 HSk_W`f <Sk
H* 6 HSk_W`f <Sk ([X E;=*)
H+ 6 HSk_W`f <Sk ([X E;=+)
E;= 6 ES`VSfadk ;S^^ =hW`f
1radihg/SeIIlemehI Day 1 2 3 4 5 6 7 8 9
=jS_b^W3 Bg`W S`V Bg^k +00/ ++// +,// +/// +0// +1// +2// ,0// ,/0 -/0
JfaU] ;::; (Fad_S^ =jb[dk) D, M = H
@S`Y JW`Y [`VWj ;::; (Fad_S^ =jb[dk) D =, M H
JfaU] / @S`Y JW`Y [`VWj ;::; (E;=) D, =, M*
[X E;= [` _ad`[`Y eWee[a` ([X E;=*) H*
JfaU] / @S`Y JW`Y [`VWj ;::; (E;=) D, = M+
[X E;= [` SXfWd`aa` eWee[a` ([X E;=+) H+
Comparisoh wiIh DW
JfaU] <N D = H
5--- M (. VSke ShWdSYW U^ae[`Y bd[UW) ---7
@S`Y JW`Y [`VWj <N D =,M H
0 /
C88C LiquidiIy Providers
;::; [eegWde SdW dWcg[dWV fa Sbba[`f S
D[cg[V[fk Hdah[VWd Xad WSUZ aX fZW[d ^[efWV
;::;. =SUZ D[cg[V[fk Hdah[VWd eZag^V ZShW
S Tda]Wd `g_TWd aX W[fZWd 2.OO ad 2/OO Xad
[VW`f[X[USf[a`. A`hWefade US` h[e[f fZW @C=j
iWTe[fW Xad fZW ^[ef aX D[cg[V[fk Hdah[VWde.
KZW WjSUf aT^[YSf[a`e aX fZW D[cg[V[fk Hdah[VWd
Xad WSUZ ;::; SdW eZai` [` fZW ^[ef[`Y
VaUg_W`f.
CapiIal ad|usImehIs
>ad ;::; i[fZ g`VWd^k[`Y @a`Y Ca`Y efaU]e,
fZW ;S^^ Hd[UW, Jfd[]W Hd[UW S`V W`f[f^W_W`f
dSf[a i[^^ TW SV\gefWV [X fZWdW [e S USb[fS^
SV\gef_W`f (egUZ Se Ta`ge [eegW, d[YZf [eegW,
eZSdW eb^[f S`V eZSdW Ua`ea^[VSf[a`) fa fZW
g`VWd^k[`Y efaU]e, fZW SV\gef_W`f aX fZW
;::; _gef Xa^^ai fZW bdWhS[^[`Y bd[`U[b^We
aX efaU] abf[a`e iZW` Sbb^[UST^W. LegS^^k
`a SV\gef_W`f Xad adV[`Sdk USeZ V[h[VW`Ve
[e _SVW Tgf Xad afZWd USeZ V[efd[Tgf[a` egUZ
Se USeZ Ta`ge, ebWU[S^ ad WjfdSadV[`Sdk
V[h[VW`V, SV\gef_W`f iag^V TW _SVW [X fZW
hS^gW aX bSk_W`f [e Sf ^WSef fia bWd UW`f ad
_adW aX fZW eZSdW'e U^ae[`Y bd[UW a` fZW VSk
aX fZW S``ag`UW_W`f.
ShorI sellihg
JZadf eW^^[`Y [e a`^k S^^aiWV Xad fZW dWebWUf[hW
D[cg[V[fk Hdah[VWde aX ;::;.
Lxpiry day ahd lasI Iradihg day
=SUZ ;::; ZSe S g`[cgW Wjb[dk VSfW Se
ebWU[X[WV Tk fZW [eegWd [` fZW ^[ef[`Y VaUg_W`f.
@aiWhWd, fZW ^Sef fdSV[`Y VSk aX S ;::; [e
`af fZW eS_W Se fZW Wjb[dk VSk. KZW ^Sef
fdSV[`Y VSk aX S ;::; [e fZW eS_W Se fZW
ES`VSfadk ;S^^ =hW`f <Sk ([X US^^WV TWXadW
Wjb[dk) ad a`W fdSV[`Y VSk TWXadW fZW Wjb[dk
VSk aX fZW ;::; ([X `af US^^WV). KZW fST^W
TW^ai eZaie fZW fdSV[`Y SddS`YW_W`f aX
;::; faYWfZWd i[fZ S Ua_bSd[ea` i[fZ
<Wd[hSf[hW NSddS`fe (<N).
MahdaIory Call LvehI
>ad ;::; i[fZ S @a`Y Ca`Y efaU] Se fZW
g`VWd^k[`Y SeeWf, fZW ;::; i[^^ TW US^^WV Tk
fZW [eegWd iZW` fZW g`VWd^k[`Y efaU] bd[UW
(iZ[UZ _gef TW Ua`U^gVWV Tk _WS`e aX `a`-
Udaee Sgfa_Sf[U adVWd _SfUZ[`Y a` fZW
=jUZS`YW) dWSUZWe ad YaWe TWka`V fZW ;::;
;S^^ Hd[UW (E;=) Vgd[`Y fZW =jUZS`YWne fdSV[`Y
Zagde a` S`k fdSV[`Y VSk gb fa fZW U^aeW aX
fZW DSef KdSV[`Y <Sk aX fZW ;::;.
>ad ;::; i[fZ a`W aX fZW @S`Y JW`Y [`V[UWe
Se fZW g`VWd^k[`Y SeeWf, fZW ;::; i[^^ TW
US^^WV Tk fZW [eegWd iZW` fZW g`VWd^k[`Y
[`VWj, Se Ua_b[^WV Tk fZW [`VWj bdah[VWd,
dWSUZWe ad YaWe TWka`V fZW ;::; ;S^^ DWhW^
(E;=) a` S`k fdSV[`Y VSk gb fa fZW U^aeW aX
fZW DSef KdSV[`Y <Sk aX fZW ;::;.
A` YW`WdS^, S` E;= [e [ddWhaUST^W S`V S`k fdSVWe
Ua`U^gVWV SXfWd fZW E;= i[^^ TW US`UW^^WV
W[fZWd a` fZW E;= <Sk ad a` fZW fdSV[`Y VSk
Xa^^ai[`Y fZW E;= <Sk Sf fZW ^SfWef.
499:AA B? 6556 7>;?@=8B<?>
A`hWefade US` dWXWd fa fZW @C=j iWTe[fW (iii.
Z]Wj.Ua_.Z]/UTTU) Xad _adW VWfS[^WV
[`Xad_Sf[a` a` fZW ;::; fdSVWV a` [fe
eWUgd[f[We _Sd]Wf, [`U^gV[`Y _Sd]Wf WVgUSf[a`
_SfWd[S^e, [eegWde' bdWh[age S``ag`UW_W`fe
S`V ^[ef[`Y VaUg_W`fe, [eegWde' ;::;
S``ag`UW_W`fe Xad fZW UgddW`f VSk S`V fZW
;::; VS[^k fdSV[`Y eg__Sd[We egT_[ffWV fa
fZW =jUZS`YW Tk [eegWde. A`hWefade US` S^ea
dWXWd fa fZW ;::; [eegWde' iWTe[fWe S`V fZW[d
bgT^[USf[a`e Xad [`Xad_Sf[a` a` fZW[d
dWebWUf[hW ;::;.
FrequehIly Asked QuesIiohs
1. Wheh is Ihe lasI Iradihg day o! a
C88C? Cah Ihe C88C be sold a!Ier
Ihe MahdaIory Call LvehI?
KZW ^Sef fdSV[`Y VSk aX S ;::; [e fZW
eS_W Se fZW ES`VSfadk ;S^^ =hW`f <Sk
([X US^^WV TWXadW Wjb[dk) ad a`W fdSV[`Y
VSk TWXadW fZW Wjb[dk VSk aX fZW ;::;
([X `af US^^WV). NZW` S` E;= aUUgde,
fZW ;::; i[^^ TW US^^WV Tk fZW [eegWd S`V
fdSV[`Y aX fZSf ;::; i[^^ fWd_[`SfW Sf
a`UW, ZW`UW [`hWefade US``af eW^^ fZW
;::;.
2. Cah C88C be sold oh Ihe expiry day?
Fa. KZW Wjb[dk VSk aX S ;::; [e `af fZW
eS_W Se fZW ^Sef fdSV[`Y VSk. KZW ^Sef
fdSV[`Y VSk [e W[fZWd fZW ES`VSfadk ;S^^
=hW`f VSk ([X US^^WV TWXadW Wjb[dk) ad a`W
fdSV[`Y VSk TWXadW fZW Wjb[dk VSk ([X `af
US^^WV TWXadW Wjb[dk).
3. How are C88C Iraded oh Ihe
Lxchahge?
;::; SdW fdSVWV a` fZW =jUZS`YWne
9EJ/, b^SfXad_ Vgd[`Y fdSV[`Y Zagde [`
TaSdV ^af _g^f[b^We (Xad WjS_b^W, a`W
TaSdV ^af WcgS^e *0,000 eZSdWe), eWff^WV
a` K++ (K TW[`Y fZW fdS`eSUf[a` VSk).
4. WhaI IrahsacIioh !ees are payable
oh buyihg or sellihg C88C?
J[_[^Sd fa fZW efaU] fdSV[`Y SddS`YW_W`fe,
fdS`eSUf[a` XWWe [`U^gVW Tda]WdSYW
Ua__[ee[a`, fdS`eSUf[a` ^Whk, fdSV[`Y XWW,
;;9JJ eWff^W_W`f XWW S`V [`hWefad
Ua_bW`eSf[a` ^Whk (egebW`VWV e[`UW
<WUW_TWd +00.). JfS_b Vgfk [e [`
YW`WdS^ `af Sbb^[UST^W fa USeZ-eWff^WV
;::;, Tgf [`hWefade SdW SVh[eWV fa dWXWd
fa fZW ^[ef[`Y VaUg_W`fe Xad [`Xad_Sf[a`.
5. Will C88Cbe coveredby compehsaIioh
!uhd?
PWe, fZW ^aeeWe VgW fa VWXSg^f aX ^[UW`eWV
[`fWd_WV[Sd[We ad SgfZad[eWV X[`S`U[S^
[`ef[fgf[a`e SdW UahWdWV Tk A`hWefad
;a_bW`eSf[a` >g`V. @aiWhWd, VWXSg^f
Tk [eegWde i[^^ `af TW UahWdWV Tk fZW
Xg`V.
6. Will Ihere be ahy ad|usImehI e!!ecI
Io C88C uhder capiIal ad|usImehI o!
Ihe uhderlyihg?
>ad ;::; a` @a`Y Ca`Y efaU]e,
SV\gef_W`f aX fZW Ua`fdSUf VgW fa USb[fS^
SV\ gef_W`f ( [ `U^ gV[ `Y V[ h[ VW`V
SV\gef_W`fe) aX fZW g`VWd^k[`Y efaU]e
i[^^ Xa^^ai fZW bdWhS[^[`Y bd[`U[b^W aX
efaU] abf[a`e, iZW` Sbb^[UST^W S`V fZWeW
eS_W fWd_e ZShW fa TW ebWU[X[WV [` fZW
^[ef[`Y VaUg_W`fe. 9V\gef_W`f i[^^ TW
_SVW a` fZW ;S^^ Hd[UW, Jfd[]W Hd[UW S`V
W`f[f^W_W`f dSf[a SUUadV[`Y fa fWd_e
ebWU[X[WV [` fZW ^[ef[`Y VaUg_W`fe.
7. WhaI i! Ihe uhderlyihg sIock o! a
C88C is suspehded !rom Iradihg?
AX fZW g`VWd^k[`Y efaU] egebW`VWV Xda_
fdSV[`Y [e S efaU] fdSVWV a` fZW =jUZS`YW,
fZW dW^SfWV ;::; i[^^ S^ea TW egebW`VWV
Xda_ fdSV[`Y g`f[^ fdSV[`Y aX fZW
g`VWd^k[`Y efaU] dWeg_We. >ad fdSV[`Y
egebW`e[a`e [`ha^h[`Y ahWdeWSe efaU]e,
[ `hWef ad e eZag^ V dWX Wd f a f ZW
SddS`YW_W`fe efSfWV [` fZW ;::; ^[ef[`Y
VaUg_W`fe.
8. How cah ihvesIors geI ih!ormaIioh
abouI C88C lisIed oh Ihe Lxchahge?
KZW VW^SkWV bd[UW aX ;::; [e V[eb^SkWV
a` fZW =jUZS`YW'e A`hWef_W`f JWdh[UW
;W`fdW iWTbSYW S`V bgT^[eZWV Tk _aef
[`Xad_Sf[a` hW`Vade fZdagYZ fZW[d
fWd_[`S^e/iWTe[fWe. GfZWd [`Xad_Sf[a`
D 6 DSef KdSV[`Y <Sk
= 6 =jb[dk <Sk
M 6 MS^gSf[a` <Sk}Hd[UW <WfWd_[`Sf[a` <Sk
M* 6 <WfWd_[`Sf[a` aX dWe[VgS^ hS^gW Xad ;SfWYadk I ;::; [` fZW SXfWd`aa`
eWee[a` aX <Sk .z [X E;= aUUgde [` fZW _ad`[`Y eWee[a` aX <Sk .
vE;=*w
M+ 6 <WfWd_[`Sf[a` aX dWe[VgS^ hS^gW Xad ;SfWYadk I ;::; [` fZW _ad`[`Y
eWee[a` aX <Sk /z [X E;= aUUgde [` fZW SXfWd`aa` eWee[a` aX <Sk .
vE;=+w
H 6 HSk_W`f <Sk
H* 6 HSk_W`f <Sk v[X E;=*w
H+ 6 HSk_W`f <Sk v[X E;=+w
E;= 6 ES`VSfadk ;S^^ =hW`f
PgVY^c\2OZiiaZbZci BVn 4 5 6 7 8 9 : ; <
=jS_b^W3 Bg`W S`V Bg^k +~~/ ++}/ +,}/ +/}/ +0}/ +1}/ +2}/ ,~}/ ,}0 -}0
JfaU] ;::; vFad_S^ =jb[dkw Dz M = H
@S`Y JW`Y [`VWj ;::; vFad_S^ =jb[dkw D =z M H
JfaU] } @S`Y JW`Y [`VWj ;::; vE;=w Dz =z M*
[X E;= [` _ad`[`Y eWee[a` v[X E;=*w H*
JfaU] } @S`Y JW`Y [`VWj ;::; vE;=w Dz = M+
[X E;= [` SXfWd`aa` eWee[a` v[X E;=+w H+
AdbeVg^hdc l^i] BR
JfaU] <N D = H
5{{{ M v. VSke ShWdSYW U^ae[`Y bd[UWw {{{7
@S`Y JW`Y [`VWj <N D =zM H
0 /
A@@A I^fj^Y^in Lgdk^YZgh
;::; [eegWde SdW dWcg[dWV fa Sbba[`f S
D[cg[V[fk Hdah[VWd Xad WSUZ aX fZW[d ^[efWV
;::;| =SUZ D[cg[V[fk Hdah[VWd eZag^V ZShW
S Tda]Wd `g_TWd aX W[fZWd 2.OO ad 2/OO Xad
[VW`f[X[USf[a`| A`hWefade US` h[e[f fZW @C=j
iWTe[fW Xad fZW ^[ef aX D[cg[V[fk Hdah[VWde|
KZW WjSUf aT^[YSf[a`e aX fZW D[cg[V[fk Hdah[VWd
Xad WSUZ ;::; SdW eZai` [` fZW ^[ef[`Y
VaUg_W`f|
AVe^iVa VY_jhibZcih
>ad ;::; i[fZ g`VWd^k[`Y @a`Y Ca`Y efaU]ez
fZW ;S^^ Hd[UWz Jfd[]W Hd[UW S`V W`f[f^W_W`f
dSf[a i[^^ TW SV\gefWV [X fZWdW [e S USb[fS^
SV\gef_W`f vegUZ Se Ta`ge [eegWz d[YZf [eegWz
eZSdW eb^[f S`V eZSdW Ua`ea^[VSf[a`w fa fZW
g`VWd^k[`Y efaU]ez fZW SV\gef_W`f aX fZW
;::; _gef Xa^^ai fZW bdWhS[^[`Y bd[`U[b^We
aX efaU] abf[a`e iZW` Sbb^[UST^W| LegS^^k
`a SV\gef_W`f Xad adV[`Sdk USeZ V[h[VW`Ve
[e _SVW Tgf Xad afZWd USeZ V[efd[Tgf[a` egUZ
Se USeZ Ta`gez ebWU[S^ ad WjfdSadV[`Sdk
V[h[VW`Vz SV\gef_W`f iag^V TW _SVW [X fZW
hS^gW aX bSk_W`f [e Sf ^WSef fia bWd UW`f ad
_adW aX fZW eZSdWue U^ae[`Y bd[UW a` fZW VSk
aX fZW S``ag`UW_W`f|
O]dgi hZaa^c\
JZadf eW^^[`Y [e a`^k S^^aiWV Xad fZW dWebWUf[hW
D[cg[V[fk Hdah[VWde aX ;::;|
Cme^gn YVn VcY aVhi igVY^c\ YVn
=SUZ ;::; ZSe S g`[cgW Wjb[dk VSfW Se
ebWU[X[WV Tk fZW [eegWd [` fZW ^[ef[`Y VaUg_W`f|
@aiWhWdz fZW ^Sef fdSV[`Y VSk aX S ;::; [e
`af fZW eS_W Se fZW Wjb[dk VSk| KZW ^Sef
fdSV[`Y VSk aX S ;::; [e fZW eS_W Se fZW
ES`VSfadk ;S^^ =hW`f <Sk v[X US^^WV TWXadW
Wjb[dkw ad a`W fdSV[`Y VSk TWXadW fZW Wjb[dk
VSk aX fZW ;::; v[X `af US^^WVw| KZW fST^W
TW^ai eZaie fZW fdSV[`Y SddS`YW_W`f aX
;::; faYWfZWd i[fZ S Ua_bSd[ea` i[fZ
<Wd[hSf[hW NSddS`fe v<Nw|
JVcYVidgn AVaa CkZci
>ad ;::; i[fZ S @a`Y Ca`Y efaU] Se fZW
g`VWd^k[`Y SeeWfz fZW ;::; i[^^ TW US^^WV Tk
fZW [eegWd iZW` fZW g`VWd^k[`Y efaU] bd[UW
viZ[UZ _gef TW Ua`U^gVWV Tk _WS`e aX `a`{
Udaee Sgfa_Sf[U adVWd _SfUZ[`Y a` fZW
=jUZS`YWw dWSUZWe ad YaWe TWka`V fZW ;::;
;S^^ Hd[UW vE;=w Vgd[`Y fZW =jUZS`YWne fdSV[`Y
Zagde a` S`k fdSV[`Y VSk gb fa fZW U^aeW aX
fZW DSef KdSV[`Y <Sk aX fZW ;::;|
>ad ;::; i[fZ a`W aX fZW @S`Y JW`Y [`V[UWe
Se fZW g`VWd^k[`Y SeeWfz fZW ;::; i[^^ TW
US^^WV Tk fZW [eegWd iZW` fZW g`VWd^k[`Y
[`VWjz Se Ua_b[^WV Tk fZW [`VWj bdah[VWdz
dWSUZWe ad YaWe TWka`V fZW ;::; ;S^^ DWhW^
vE;=w a` S`k fdSV[`Y VSk gb fa fZW U^aeW aX
fZW DSef KdSV[`Y <Sk aX fZW ;::;|
A` YW`WdS^z S` E;= [e [ddWhaUST^W S`V S`k fdSVWe
Ua`U^gVWV SXfWd fZW E;= i[^^ TW US`UW^^WV
W[fZWd a` fZW E;= <Sk ad a` fZW fdSV[`Y VSk
Xa^^ai[`Y fZW E;= <Sk Sf fZW ^SfWef|
499:AA B? 6556 7>;?@=8B<?>
A`hWefade US` dWXWd fa fZW @C=j iWTe[fW viii|
Z]Wj|Ua_|Z]}UTTUw Xad _adW VWfS[^WV
[`Xad_Sf[a` a` fZW ;::; fdSVWV a` [fe
eWUgd[f[We _Sd]Wfz [`U^gV[`Y _Sd]Wf WVgUSf[a`
_SfWd[S^ez [eegWdeu bdWh[age S``ag`UW_W`fe
S`V ^[ef[`Y VaUg_W`fez [eegWdeu ;::;
S``ag`UW_W`fe Xad fZW UgddW`f VSk S`V fZW
;::; VS[^k fdSV[`Y eg__Sd[We egT_[ffWV fa
fZW =jUZS`YW Tk [eegWde| A`hWefade US` S^ea
dWXWd fa fZW ;::; [eegWdeu iWTe[fWe S`V fZW[d
bgT^[USf[a`e Xad [`Xad_Sf[a` a` fZW[d
dWebWUf[hW ;::;|
DgZfjZcian ?h`ZY MjZhi^dch
41 R]Zc ^h i]Z aVhi igVY^c\ YVn d[ V
A@@A> AVc i]Z A@@A WZ hdaY V[iZg
i]Z JVcYVidgn AVaa CkZci>
KZW ^Sef fdSV[`Y VSk aX S ;::; [e fZW
eS_W Se fZW ES`VSfadk ;S^^ =hW`f <Sk
v[X US^^WV TWXadW Wjb[dkw ad a`W fdSV[`Y
VSk TWXadW fZW Wjb[dk VSk aX fZW ;::;
v[X `af US^^WVw| NZW` S` E;= aUUgdez
fZW ;::; i[^^ TW US^^WV Tk fZW [eegWd S`V
fdSV[`Y aX fZSf ;::; i[^^ fWd_[`SfW Sf
a`UWz ZW`UW [`hWefade US``af eW^^ fZW
;::;|
51 AVc A@@A WZ hdaY dc i]Z Zme^gn YVn>
Fa| KZW Wjb[dk VSk aX S ;::; [e `af fZW
eS_W Se fZW ^Sef fdSV[`Y VSk| KZW ^Sef
fdSV[`Y VSk [e W[fZWd fZW ES`VSfadk ;S^^
=hW`f VSk v[X US^^WV TWXadW Wjb[dkw ad a`W
fdSV[`Y VSk TWXadW fZW Wjb[dk VSk v[X `af
US^^WV TWXadW Wjb[dkw|
61 Fdl VgZ A@@A igVYZY dc i]Z
CmX]Vc\Z>
;::; SdW fdSVWV a` fZW =jUZS`YWne
9EJ}, b^SfXad_ Vgd[`Y fdSV[`Y Zagde [`
TaSdV ^af _g^f[b^We vXad WjS_b^Wz a`W
TaSdV ^af WcgS^e *~z~~~ eZSdWewz eWff^WV
a` Ky+ vK TW[`Y fZW fdS`eSUf[a` VSkw|
71 R]Vi igVchVXi^dc [ZZh VgZ eVnVWaZ
dc Wjn^c\ dg hZaa^c\ A@@A>
J[_[^Sd fa fZW efaU] fdSV[`Y SddS`YW_W`fez
fdS`eSUf[a` XWWe [`U^gVW Tda]WdSYW
Ua__[ee[a`z fdS`eSUf[a` ^Whkz fdSV[`Y XWWz
;;9JJ eWff^W_W`f XWW S`V [`hWefad
Ua_bW`eSf[a` ^Whk vegebW`VWV e[`UW
<WUW_TWd +~~.w| JfS_b Vgfk [e [`
YW`WdS^ `af Sbb^[UST^W fa USeZ{eWff^WV
;::;z Tgf [`hWefade SdW SVh[eWV fa dWXWd
fa fZW ^[ef[`Y VaUg_W`fe Xad [`Xad_Sf[a`|
81 R^aa A@@AWZ XdkZgZYWn XdbeZchVi^dc
[jcY>
PWez fZW ^aeeWe VgW fa VWXSg^f aX ^[UW`eWV
[`fWd_WV[Sd[We ad SgfZad[eWV X[`S`U[S^
[`ef[fgf[a`e SdW UahWdWV Tk A`hWefad
;a_bW`eSf[a` >g`V| @aiWhWdz VWXSg^f
Tk [eegWde i[^^ `af TW UahWdWV Tk fZW
Xg`V|
91 R^aa i]ZgZ WZ Vcn VY_jhibZci Z[[ZXi
id A@@A jcYZg XVe^iVa VY_jhibZci d[
i]Z jcYZgan^c\>
>ad ;::; a` @a`Y Ca`Y efaU]ez
SV\gef_W`f aX fZW Ua`fdSUf VgW fa USb[fS^
SV\ gef_W`f v [ `U^ gV[ `Y V[ h[ VW`V
SV\gef_W`few aX fZW g`VWd^k[`Y efaU]e
i[^^ Xa^^ai fZW bdWhS[^[`Y bd[`U[b^W aX
efaU] abf[a`ez iZW` Sbb^[UST^W S`V fZWeW
eS_W fWd_e ZShW fa TW ebWU[X[WV [` fZW
^[ef[`Y VaUg_W`fe| 9V\gef_W`f i[^^ TW
_SVW a` fZW ;S^^ Hd[UWz Jfd[]W Hd[UW S`V
W`f[f^W_W`f dSf[a SUUadV[`Y fa fWd_e
ebWU[X[WV [` fZW ^[ef[`Y VaUg_W`fe|
:1 R]Vi ^[ i]Z jcYZgan^c\ hidX` d[ V
A@@A ^h hjheZcYZY [gdb igVY^c\>
AX fZW g`VWd^k[`Y efaU] egebW`VWV Xda_
fdSV[`Y [e S efaU] fdSVWV a` fZW =jUZS`YWz
fZW dW^SfWV ;::; i[^^ S^ea TW egebW`VWV
Xda_ fdSV[`Y g`f[^ fdSV[`Y aX fZW
g`VWd^k[`Y efaU] dWeg_We| >ad fdSV[`Y
egebW`e[a`e [`ha^h[`Y ahWdeWSe efaU]ez
[ `hWef ad e eZag^ V dWX Wd f a f ZW
SddS`YW_W`fe efSfWV [` fZW ;::; ^[ef[`Y
VaUg_W`fe|
;1 Fdl XVc ^ckZhidgh \Zi ^c[dgbVi^dc
VWdji A@@A a^hiZY dc i]Z CmX]Vc\Z>
KZW VW^SkWV bd[UW aX ;::; [e V[eb^SkWV
a` fZW =jUZS`YWue A`hWef_W`f JWdh[UW
;W`fdW iWTbSYW S`V bgT^[eZWV Tk _aef
[`Xad_Sf[a` hW`Vade fZdagYZ fZW[d
fWd_[`S^e}iWTe[fWe| GfZWd [`Xad_Sf[a`
Hohg Kohg Lxchahges ahd
Clearihg LimiIed
*+/>, G`W A`fWd`Sf[a`S^ >[`S`UW
;W`fdW, * @SdTagd M[Wi JfdWWf,
;W`fdS^, @a`Y Ca`Y
KW^ 3 +1.+ +.++ **++
>Sj 3 +1.+ ++2. ,*0/
NWTe[fW3 iii.Z]Wj.Ua_.Z]
=-_S[^3 [`Xa8Z]Wj.Ua_.Z]
9gYgef +00/
* 1
y-}~/01z-}+-*
xz,,z{,~ w2,, v w~z/ x.-1/z|10
A`hWefade dWSV[`Y fZ[e ^WSX^Wf eZag^V S^ea dWXWd fa fZW [`Xad_Sf[a` [` fZW @C=j iWTe[fW
(iii.Z]Wj.Ua_.Z]/UTTU) Xad _adW VWfS[^e S`V gbVSfWV [`Xad_Sf[a`.
KdSV[`Y [` ;S^^ST^W :g^^/:WSd ;a`fdSUfe (;::;) [`ha^hWe Z[YZ d[e]e4 [`hWefade SdW efda`Y^k
SVh[eWV fa ZShW S fZadagYZ g`VWdefS`V[`Y aX fZW bdaVgUf Se iW^^ Se fZW fWd_e S`V Ua`V[f[a`e
aX fZW ;::; TW[`Y aXXWdWV S`V/ad Ua`eg^f fZW[d Tda]Wde ad bdaXWee[a`S^ [`hWef_W`f SVh[eWde
TWXadW fdSV[`Y.
g`VWd^k[`Y SeeWf ([.W. VW^fS U^aeW fa a`W).
KZge, [X fZW g`VWd^k[`Y SeeWf [`UdWSeWe [`
hS^gW, S :g^^ ;::; i[fZ W`f[f^W_W`f dSf[a
aX * fa * YW`WdS^^k [`UdWSeWe [` hS^gW Tk
Sbbdaj[_SfW^k fZW eS_W S_ag`f iZWdWSe
S :WSd ;::; i[fZ W`f[f^W_W`f dSf[a aX *
fa * YW`WdS^^k VWUdWSeWe [` hS^gW Tk
Sbbdaj[_SfW^k fZW eS_W S_ag`f. KZ[e
bdabWdfk aXXWde [`hWefade S bdaVgUf iZ[UZ
fdSU]e fZW bd[UW _ahW_W`f aX fZW
g`VWd^k[`Y SeeWf _adW U^aeW^k S`V i[fZ
Z[YZWd bd[UW fdS`ebSdW`Uk fZS` ea_W afZWd
efdgUfgdWV bdaVgUfe. @aiWhWd, iZW` fZW
g`VWd^k[`Y SeeWf aX S ;::; [e fdSV[`Y Sf
S bd[UW U^aeW fa [fe ;S^^ Hd[UW, fZW UZS`YW
[` fZW hS^gW aX ;::; _Sk TW _adW ha^Sf[^W
S`V V[ebdabadf[a`SfW i[fZ fZW UZS`YW [`
fZW hS^gW aX fZW g`VWd^k[`Y SeeWf.
+. ;::; ZShW S ;S^^ Hd[UW S`V S ES`VSfadk
;S^^ >WSfgdW
>ad :g^^ Ua`fdSUfe, fZW ;S^^ Hd[UW _gef TW
W[fZWd WcgS^ fa ad STahW fZW Jfd[]W Hd[UW.
>ad :WSd Ua`fdSUfe, fZW ;S^^ Hd[UW _gef TW
WcgS^ fa ad TW^ai fZW Jfd[]W Hd[UW. AX fZW
g`VWd^k[`Y SeeWf'e bd[UW dWSUZWe fZW ;S^^
Hd[UW Sf S`k f[_W bd[ad fa Wjb[dk, fZW ;::;
i[^^ Wjb[dW WSd^k. KZW [eegWd _gef US^^ fZW
;::; S`V fdSV[`Y aX fZW ;::; i[^^ TW
fWd_[`SfWV [__WV[SfW^k. JgUZ S` WhW`f
[e dWXWddWV fa Se S ES`VSfadk ;S^^ =hW`f
(E;=).
,. ;SfWYad[We aX ;::;
KZWdW SdW fia USfWYad[We aX ;::;, `S_W^k
;SfWYadk F ;::; S`V ;SfWYadk I ;::;.
WhaI Are C88C?
;::; SdW S fkbW aX efdgUfgdWV bdaVgUf fZSf
fdSU]e fZW bWdXad_S`UW aX S` g`VWd^k[`Y
SeeWf i[fZagf dWcg[d[`Y [`hWefade fa bSk fZW
Xg^^ bd[UW dWcg[dWV fa ai` fZW SUfgS^ SeeWf.
KZWk SdW [eegWV W[fZWd Se :g^^ ad :WSd Ua`fdSUfe
i[fZ S X[jWV Wjb[dk VSfW, S^^ai[`Y [`hWefade
fa fS]W Tg^^[eZ ad TWSd[eZ bae[f[a`e a` fZW
g`VWd^k[`Y SeeWf. ;::; SdW [eegWV Tk S fZ[dV
bSdfk, gegS^ ^ k S` [ `hWef_W`f TS`],
[`VWbW`VW`f aX @C=j S`V aX fZW g`VWd^k[`Y
SeeWf.
;::; SdW [eegWV i[fZ fZW Ua`V[f[a` fZSf
Vgd[`Y fZW[d ^[XWebS` fZWk i[^^ TW US^^WV Tk
fZW [eegWde iZW` fZW bd[UW aX fZW g`VWd^k[`Y
SeeWf dWSUZWe S ^WhW^ (]`ai` Se fZW ";S^^
Hd[UW") ebWU[X[WV [` fZW ^[ef[`Y VaUg_W`f. AX
fZW ;S^^ Hd[UW [e dWSUZWV TWXadW Wjb[dk, fZW
;::; i[^^ Wjb[dW WSd^k S`V fZW fdSV[`Y aX
fZSf ;::; i[^^ TW fWd_[`SfWV [__WV[SfW^k.
KZW ebWU[X[WV Wjb[dk VSfW Xda_ fZW ^[ef[`Y
VaUg_W`f i[^^ `a ^a`YWd TW hS^[V.
;::; _Sk TW [eegWV i[fZ S ^[XWebS` aX fZdWW
_a`fZe fa X[hW kWSde S`V SdW eWff^WV [` USeZ
a`^k. KZWk SdW fdSVWV a` fZW USeZ _Sd]Wf
aX @C=j fZdagYZ fZW KZ[dV ?W`WdSf[a`
9gfa_Sf[U GdVWd ESfUZ[`Y S`V =jWUgf[a`
JkefW_ (9EJ/,) Vgd[`Y fZW _Sd]Wf'e fdSV[`Y
Zagde.
Ma|or FeaIures o! C88C
*. Hd[UW EahW_W`f aX ;::; KW`Ve fa KdSU]
fZW Hd[UW aX L`VWd^k[`Y 9eeWf ;^aeW^k
KZW bd[UW UZS`YWe aX S ;::; fW`V fa
Xa^^ai U^aeW^k fZW bd[UW UZS`YWe aX fZW
Disclaimer: KZW _SfWd[S^ Ua`fS[`WV ZWdW[` [e Xad YW`WdS^ [`Xad_Sf[a` a`^k S`V VaWe `af Ua`ef[fgfW S` [`h[fSf[a` ad aXXWd fa SUcg[dW, bgdUZSeW ad egTeUd[TW
Xad eWUgd[f[We. A`hWefade eZag^V dWSV fZW ^[ef[`Y VaUg_W`f USdWXg^^k, W`egdW fZSf fZWk g`VWdefS`V fZW `SfgdW aX S`V d[e]e SeeaU[SfWV i[fZ fZW[d [`hWef_W`f,
S`V iZWdW `WUWeeSdk Ua`eg^f fZW[d ai` X[`S`U[S^ SVh[eWde Se fa fZW eg[fST[^[fk aX fZW [`hWef_W`f [` ^[YZf aX fZW[d bSdf[Ug^Sd X[`S`U[S^ U[dUg_efS`UWe S`V
aT\WUf[hWe bd[ad fa _S][`Y S`k [`hWef_W`f VWU[e[a`.
egUZ Se ^[efWV [eegWde' S``ag`UW_W`fe
S`V ^[ef[`Y VaUg_W`fe SdW S^ea ShS[^ST^W
a` fZW @C=j iWTe[fW. A`hWefade US`
aTfS[` fZW dWS^-f[_W bd[UWe aX ;::; (S`V
afZWd @a`Y Ca`Y eWUgd[f[We) [X fZWk
egTeUd[TW fa fZW dWS^ f[_W VSfS.
9. How cah ihvesIors cohIacI LiquidiIy
Providers Io requesI quoIes?
9` [`hWefad US` dWcgWef S cgafW Xda_ S
D[cg[V[fk Hdah[VWd [X fZW ^[ef[`Y VaUg_W`f
efSfWe fZSf cgafWe SdW bdah[VWV gba`
dWcgWef. >ad ;::; i[fZ D[cg[V[fk
Hdah[VWde fZSf dWeba`V fa cgafW dWcgWefe,
fZW fW^WbZa`W `g_TWde aX fZW D[cg[V[fk
Hdah[VWde SdW ShS[^ST^W a` fZW ;::; efaU]
bSYW aX 9EJ/,, [` fZW ^[ef[`Y VaUg_W`f
S`V a` fZW @C=j iWTe[fW.
10. WhaI are Ihe obligaIiohs o! a
LiquidiIy Provider?
KZW ^[ef[`Y VaUg_W`f ^[efe fZW WjSUf
aT^[YSf[a`e aX fZW D[cg[V[fk Hdah[VWd. A`
`ad_S^ U[dUg_efS`UWe, D[cg[V[fk Hdah[VWde
eZag^V bdah[VW ^[cg[V[fk Xad ;::; [eegWe
fZdagYZ Ua`f[`gage cgafWe ad [` dWeba`eW
fa cgafW dWcgWefe Xda_ X[hW _[`gfWe SXfWd
fZW _Sd]Wf ZSe abW`WV g`f[^ fZW _Sd]Wf
U^aeWe. KZW D[cg[V[fk Hdah[VWd eZag^V
bdah[VW ^[cg[V[fk Xad Sf ^WSef *0 TaSdV ^afe
aX fZW ;::;. 9` [eegWd _gef ebWU[Xk fZW
_Sj[_g_ ebdWSV TWfiWW` fZW T[V S`V
aXXWd bd[UWe Xad [fe ;::; S`V fZW
_Sj[_g_ dWeba`eW f[_W [` fZW ^[ef[`Y
VaUg_W`f. L`VWd fZW cgafW dWcgWef
ekefW_, [`hWefade _Sk dWcgWef S cgafW
Xda_ fZW D[cg[V[fk Hdah[VWd.
11. How mahy LiquidiIy Providers cah ah
issuer appoihI !or each C88C issue?
9` [eegWd _Sk Sbba[`f V[XXWdW`f D[cg[V[fk
Hdah[VWde Xad V[XXWdW`f ;::; [eegWe.
@aiWhWd, Xad WSUZ ;::; [eegW fZWdW US`
a`^k TW a`W D[cg[V[fk Hdah[VWd.
12. Uhder whaI circumsIahces is Ihe
LiquidiIy Provider hoI required Io
provide liquidiIy?
KZW U[dUg_efS`UWe [` iZ[UZ fZW D[cg[V[fk
Hdah[VWd [e `af dWcg[dWV fa bdah[VW ^[cg[V[fk
SdW VWeUd[TWV [` fZW ^[ef[`Y VaUg_W`f.
A`hWefade eZag^V dWXWd fa fZW ^[ef[`Y
VaUg_W`f Xad VWfS[^e.

You might also like