MEFF, the Spanish derivatives market, launches these new Options with Banco Santander, Banco Sabadell, BBVA, Endesa, Iberdrola, Inditex, Repsol y Telefónica as underlyings

BME, through MEFF, the Spanish derivatives market, has listed new European-style cash-settled options contracts, i.e. settled by differences. In this initial phase, the underlying stocks are Banco Santander, Banco Sabadell, BBVA, Endesa, Iberdrola, Inditex, Repsol, and Telefónica.

Cash settlement is the procedure whereby the contract is fulfilled on the settlement date only through the transfer in cash of the difference between the price agreed in the contract and the settlement price at maturity. Therefore, in this type of option, there is no possibility of early exercise.

The main advantages of these new contracts, available to investors since March 2025, are:

• Standardization: simplifies the trading and investment process and benefits contract liquidity.
• Accessibility: they will be available in the order book and register applications, improving market transparency and efficiency.
• Flexibility: allows for more varied and sophisticated investment strategies without the possibility of the strategy holder having to deal with early exercises.
• Cash-settled: as they are cash-settled options, the call seller and put buyer are not required to own the shares on the day of expiration.

Clotilde Salmerón, Head of MEFF, explains that “at BME we are constantly working to offer new alternatives for investors. That is why we always listen to our clients’ needs and seek to improve our offering. We believe that with this new launch, the Spanish derivatives market offers new incentives for all types of investors, which will allow us to continue growing”.

Susquehanna, a member of MEFF, has played a decisive role in the launch of European-style cash-settled equity options. As a leading liquidity provider, Susquehanna, which is committed to providing key liquidity for the growth of this product, offers prices both on screen and for block trades through its institutional trading desk, ensuring solid market coverage.

Source: BME