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Item

Description

Underlying

Gold with a purity of 0.9999

Abbreviation

Gold Options (gold call, gold put)

Ticker Symbol

TGO 

Exercise Style

European (exercisable on expiration date only)

Contract Size

1 Taiwan tael (10 Taiwan cians or 37.5 grams)

Expiration Months

3 consecutive even months (February, April, June, August, October, December).

Upon expiration of near month, new contract month will be listed for trading beginning on the next regular trading session.

Strike Price Interval

Strike price below NTD 2,000: NTD 5 in the spot month and NTD NTD 25 in the next two even months

Strike price at or above NTD 2,000 but below NTD 4,000:NTD 25 in the spot month and NTD 50 in the next two even months

Strike price at or above NTD 4,000:NTD 50 in the spot month and NTD 100 in the next two even months

Strike (Exercise) Price

When listing series of new expiration months, one series with at-the-money strike price is listed in the regular trading session based on the daily settlement price of the nearest month NT Dollar gold futures contract (the "base price") rounded down to the nearest multiples of strike price interval, and based on said strike price, 10 in-the-money series and 10 out-of-the-money series are listed in the regular trading session.

Before expiration, for listing contract series with new strike prices, contracts with new strike prices are introduced sequentially during the regular trading session based on the strike price interval. For the nearest month contract, new strike price contracts shall be introduced until contracts with strike prices above and below the base price each reach 15. For the subsequent two even-month contracts, new strike price contracts shall be introduced until contracts with strike prices above and below the base price each reach 10.

Premium Quotation

0.5 points (NTD 5)

Price Limits

3-Level Price Limits at ±5%, ±10% and ±15% of the daily settlement price of the preceding regular trading session of nearest month NT Dollar gold futures contract.

Position Limit

Open positions held on either side of the market at any time shall not exceed the limit standard announced by TAIFEX.

"Open positions on either side of the market" means the total of call options bought and put options sold or the total of call options sold and put options bought.

Institutional investors may apply for an exemption from the above limit on trading accounts for hedging purposes.

The position limits are not applicable to omnibus accounts, with the exception of undisclosed omnibus accounts, which accounts are subject to the limits for institutional investors.

Trading Hours

Trading days conform to regular exchange trading days

Regular trading session: 08:45AM-04:15PM Taiwan time

After-hours trading session: 05:25PM on trading day - 05:00AM of the following day; no after-hours trading session on the last trading day for the delivery month contract

Last Trading Day

Third-to-last business day in the delivery month.

Expiration Day

The first business day following the last trading day

Final Settlement Price

The final settlement price shall be set on the basis of the LBMA Gold Price AM announced by ICE Benchmark Administration Limited(IBA) on the same calendar day as the last trading day and the USD/TWD spot exchange rate at 11 AM Taiwan time announced by Taipei Forex Inc. on the last trading day, after conversion for weight and fineness. The formula for its calculation is as follows: (LBMA Gold Price AM ÷ 31.1035 × 3.75 ×0.9999 ÷ 0.995 )× the USD/TWD spot exchange rate at 11 AM

Settlement

Cash settlement. A contract that is in-the-money shall be exercised  automatically.

In addition, according to " Taiwan Futures Exchange Operational Key Points of Clearing and Settlement for Futures Commission Merchants and Clearing Members" , market participants with open positions may apply for delivering or receiving the physical gold that is registered to and regulated by Taipei Exchange for trading