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Product Description
The Securities Broker/Dealer Index
is designed to measure the performance of highly capitalized companies in the U.S.
securities broker/dealer industry. Included in this group are companies in the U.S. that
provide securities brokerage services, market making, U.S. Treasury Primary Dealer
functions and other functions dealing with U.S. and international securities.
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Equal-Dollar Weighting
The Index is equal-dollar weighted
to ensure that each of its component securities is represented in approximate equal-dollar
value. Equal-dollar weighting was established by designating the number of shares of each
component stock that represented approximately $10,000 in market value, based on closing
prices on Oct. 15, 1993 (e.g., a stock that closed at $20 per share would be represented
in the Index by 500 shares for a total market value of $10,000). The aggregate value of
the stocks was reduced by a divisor to establish an Index benchmark value of 300.00.To
ensure that each component stock continues to represent approximate equal market value in
the Index, adjustments are made quarterly after the close of trading on the third Friday
of January, April, July and October. |
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Index Components
Components list as of 10/8/01
| The Securities
Broker/Dealer Index is composed of shares of the following issues: |
| Ameritrade Holding Corp. |
(AMTD) |
Lehman Brothers Holdings, Inc. |
(LEH) |
| Bear Stearns Companies, Inc. |
(BSC) |
Merrill Lynch & Co., Inc.
|
(MER) |
| E*TRADE Group |
(ET) |
Morgan Stanley, Dean Witter &Co. |
(MWD) |
| A.G. Edwards, Inc. |
(AGE) |
Raymond James Financial, Inc. |
(RJF) |
| Goldman Sachs Group, Inc. |
(GS) |
Charles Schwab Corporation |
(SCH) |
| Jeffries Group |
(JEF) |
TD Waterhouse Group, Inc. |
(TWE) |
| Legg Mason, Inc. |
(LM) |
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Trading Unit
The minimum trade size is one
option contract. The notional value underlying each contract equals $100 multiplied by the
Index value. |
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Expiration Cycle
Three consecutive near-term
expiration months plus two successive months from the January cycle. |
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Expiration
The Saturday following the third
Friday of the expiration month. |
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Last Trading Day
Two business days prior to
expiration (normally a Thursday). |
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Limited Exercise of Options
European style. Options may be
exercised only on the last business day prior to expiration (normally a Friday). Writers
are subject to assignment only at expiration. Check with your broker to ascertain cut-off
times for exercise and provisions for automatic exercise. |
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"Delivery" Method if Exercised
Cash settlement based on the
dollar difference between the final settlement value of the Index and the strike price of
the contract multiplied by $100. |
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Exercise Price Intervals
Exercise (strike) prices are set
at five-point intervals, bracketing the current Index value when the Index is above 200.
If the Index is below 200, the interval will be 2 ½ points. |
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Option Premium Quotations
Stated in points and fractions.
One point equals $100. Minimum tick for series trading below 3 is 1/16 ($6.25); for all
other series, 1/8 ($12.50). |
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Final Index Settlement Value
Determined on the last business
day prior to expiration, based on the first (opening) reported sale price for each
component stock. |
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Settlement
Next business day following
expiration. |
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Position Limits
31,500 contracts on the same side
of the market. |
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Minimum Customer Margin for Uncovered
Writers
Premium plus 20% of the aggregate
Index value (Index value x $100) reduced by any out-of-the-money amount to a minimum of
premium plus 10% of the aggregate Index value. |
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Trading Hours
9:30 a.m. to 4:02 p.m., New York
time. |
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Trading System
Specialist/Registered Options
Trader. |
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CUSIP Number
001956101 |
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Trading Symbol
XBD |
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Final Settlement Value Symbol
XBS |
