Listed derivatives: futures and options from set-up to expiry
Define contracts, trade from live option chains, mark positions daily and settle expiries automatically, on the same ledger as your cash business.
In short
ZagTrader runs listed futures and options end to end. Define contracts with multiplier, margin and expiry, and trade options from a live chain. Positions are marked to the settlement price daily, so variation margin moves as cash. At expiry, futures close and in-the-money options settle or exercise automatically.
- Built for
- Brokers, clearing members and banks offering exchange-traded futures and options
- Covers
- Futures, American and European options, options on futures, structured notes and baskets
- Runs
- On the ZagTrader platform, sharing one ledger, margin view and reporting with the cash business
What a derivatives desk gets
The full contract lifecycle, without spreadsheets between the steps.
Contracts defined once
Multiplier or tick value, initial margin, expiry, underlying and next contract. A change to a margin rate posts to the ledger and is kept in a dated history.
See the detailsLive option chains
Expiries, strikes and quotes from your market-data subscription. Picking a contract creates the tradable instrument automatically.
See the detailsDaily variation margin
Each position is closed and reopened at the settlement price, so profit and loss moves as cash every day. Runs on a schedule or by an operator, with checked rollback.
See the detailsInitial margin with early warning
Margin required, unrealised P&L and margin percentage per client. Two alert levels and a call level, with automated margin-call notifications.
See the detailsExpiry handled automatically
Futures close once the final settlement price arrives. Out-of-the-money options lapse; in-the-money options cash-settle or exercise into the underlying.
See the detailsRollover in one action
Close the front contract and open the next one, placed only after the closing leg fills. Both legs are linked for audit.
See the detailsThe contract lifecycle
From contract set-up to expiry, exercise or roll.
- 1
Set up the contract
Enter contract terms on the instrument master, or load a venue's contract file in bulk.
- 2
Trade
Clients and dealers trade futures and options, choosing option contracts from a live chain.
- 3
Mark to market daily
Positions are valued at the day's settlement price and the variation margin posts to each client's ledger.
- 4
Watch the margin
Initial margin, unrealised P&L and margin percentage update per client, with alerts and margin calls.
- 5
Expire, exercise or roll
Expiries settle automatically, operators handle the exceptions, and futures roll to the next contract in one action.
Everything inside Listed Derivatives
The full capability set, in plain language.
| Capability | What you get |
|---|---|
| Futures contracts | Deliverable or cash-settled, near and far month contracts, contract size or tick-value sizing, and rules for generating new contracts. |
| Options contracts | American and European calls and puts with strike and underlying, on cash instruments or on futures, using the same contract fields. |
| Bulk contract load | Load a venue's contract definitions from file. Contracts missing from the file are disabled unless clients still hold them. |
| Option chains | Live expiries and quotes on the order ticket and through the API. A selected contract becomes a tradable instrument; existing contracts are reused. |
| Settlement prices | A dated settlement price per contract, from file import, operator entry or the instrument master. |
| Daily mark-to-market | Preview, then commit. Positions are closed and reopened at the settlement price; contracts without a price are held back for the next run. |
| Scheduled daily settlement | Unattended end-of-day settlement for futures on each market you switch on. |
| Margin and exposure | Per-client margin required, unrealised P&L and margin percentage, consolidated or per currency, with alert bands and margin-call notifications. |
| Futures expiry | Automatic close of expired futures per market, once the final settlement price for the day is in. |
| Option expiry and exercise | Lapse out of the money, cash settlement at intrinsic value for European style, physical exercise at the strike for American style. Every outcome is audited. |
| Expiry desk | One screen to close expiring futures, options and bonds at the settlement price, with next week's expiries listed on the dashboard. |
| Expiration import | Load final prices from a spreadsheet and disable expired contracts that have no open positions or orders. |
| Rollover | Roll by custodian and sub-account, with checks for open orders and a missing next contract, plus a full rollover history. |
| Futures corporate actions | A cash dividend on the underlying adjusts the average cost of every live futures contract on it, with separate closing and value dates. |
| Reports | Cash settlement, contract details, exposure, positions by contract, option distribution by strike and expiry, and live option monitoring. |
| Structured products | Component baskets with live basket pricing and look-through holdings. FX-linked and credit-linked notes recorded with their terms and serviced as bonds. |
Frequently asked questions
Which listed derivatives does ZagTrader support?
Exchange-traded futures, deliverable or cash-settled, and options in American and European style, written on cash instruments or on futures.
How is daily variation margin handled?
Each net position is closed and reopened at the day's settlement price. The profit or loss posts to the client's ledger as cash, and the position carries on unchanged.
What happens at expiry?
Futures close automatically once the final settlement price arrives. Options out of the money lapse; European options in the money settle in cash, American options exercise into the underlying.
How are written options that expire in the money handled?
Assignments are booked from the expiry desk at the settlement price, each as its own audited trade, so every decision is visible.
Where do option chains come from?
Expiries and quotes are drawn live from your market-data subscription. When a client picks a contract, the platform creates the tradable instrument automatically.
Are structured products supported?
Yes. Baskets of instruments are priced live with look-through holdings. FX-linked and credit-linked notes are recorded with their terms and serviced as bonds for coupons and settlement.
See it on your own business
Tell us how you work today and we will show you the matching workflow on ZagTrader.
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