Difference between revisions of "KBW Bank Index"

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The cash-settled KBW Bank Index (BKX), traded on the [[International Securities Exchange]] and [[PHLX]]]]<ref>{{cite web|name="Directory of Listed Products” |url=http://www.theocc.com/onn/issues/search_issues.jsp|org=www.occ.com|date=Nov. 15, 2007}}</ref> (BKXsm is a service mark of the Philadelphia Stock Exchange, Inc.), is a float-adjusted, modified market-cap index comprising 24 leading national money center banks and thrifts.  
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The cash-settled KBW Bank Index (BKX), traded on the [[International Securities Exchange]] and [[PHLX]]<ref>{{cite web|name="Directory of Listed Products”|url=http://www.theocc.com/onn/issues/search_issues.jsp|org=Options Clearing Corporation|date=Nov. 15, 2007}}</ref> (BKX is a service mark of the [[Philadelphia Stock Exchange]], Inc.), is a float-adjusted, modified market-cap index comprising 24 leading national money center banks and thrifts.  


The Index is evaluated at least annually by Keefe, Bruyette & Woods (KBW) to assure that the composition is highly representative of the banking industry. KBW is an institutionally oriented securities broker/dealer and full service investment bank that specializes in the financial services sector.  
The Index is evaluated at least annually by [[Keefe, Bruyette & Woods]] (KBW) to assure that the composition is highly representative of the banking industry. KBW is an institutionally oriented securities broker/dealer and full service investment bank that specializes in the financial services sector.  


The KBW Bank Index captures over $1.2-trillion market capitalization of the U.S. banking industry. Citigroup, Bank of America, J.P. Morgan Chase, Wells Fargo, Wachovia, and the Bank of New York Mellon Corp. are a few of the banks covered in the Index.
The KBW Bank Index captures over $1.2-trillion market capitalization of the U.S. banking industry. [[Citigroup]], [[Bank of America]], [[J.P. Morgan Chase]], [[Wells Fargo]], [[Wachovia]], and the [[Bank of New York Mellon Corp.]] are a few of the banks covered in the Index.


Because these contracts are [[fungible]], contract specifications<ref>{{cite web|org=International Securities Exchange|url=http://www.ise.com/WebForm/options_product_indexDetails.aspx?categoryid=234&header0=true&menu2=true&link2=true&symbol=BKX|name=Product Details|date=December 3, 2007}}</ref> at these exchanges mirror one another.


Because these contracts are fungible, contract specifications at these exchanges mirror one another other.
== Product Specifications ==


PRODUCT SPECIFICATIONS
{|cellspacing=1 cellpadding=2 border=1
|-
|'''Symbol'''
|BKX
|-
|'''Index Multiplier '''
|100
|-
|'''Price Interval '''
|Strike price intervals are at least $2.50.
|-
|'''Minimum Trading Increments'''
|The minimum trading increment for an options contract trading at less than $3.00 is $0.05. The minimum trading increment for an options contract trading at $3.00 or higher is $0.10.
|-
|'''Expiration Date '''
|Saturday following the third Friday of the expiration month.
|-
|'''Expiration Months '''
|Three near-term months followed by two additional month from the March quarterly cycle (March, June, September and December).
|-
|'''Exercise Style '''
|European
|-
|'''Last Trading Day '''
|Trading will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.
|-
|'''Settlement Type '''
|A.M., cash settlement
|-
|'''Settlement Value '''
|The exercise-settlement value is calculated using the opening (first) reported sales price in the primary market of each component stock on the last business day (usually a Friday) before the expiration date. The exercise-settlement amount is equal to the difference between the exercise-settlement value and the exercise price of the option, multiplied by $100. Exercise will result in delivery of cash on the business day following expiration.
|-
|'''Position and Exercise Limits'''
|The position and exercise limits are 44,000 contracts on the same side of the market. Position and Exercise limits are subject to change.
|-
|'''Trading Hours '''
|9:30 A.M. - 4:00 P.M. Eastern Time (New York time). 
|}


'''Symbol''':  BKX
   
'''Index Multiplier ''': 100
   
'''Price Interval ''': Strike price intervals are at least $2.50.
   
'''Minimum Trading Increments''':  The minimum trading increment for an options contract trading at less than $3.00 is $0.05. The minimum trading increment for an options contract trading at $3.00 or higher is $0.10.
   
'''Expiration Date ''': Saturday following the third Friday of the expiration month.
   
'''Expiration Months ''': Three near-term months followed by two additional month from the March quarterly cycle (March, June, September and December).
   
'''Exercise Style ''':  European
   
'''Last Trading Day ''':  Trading will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.
   
'''Settlement Type ''': A.M., cash settlement
   
'''Settlement Value ''': The exercise-settlement value is calculated using the opening (first) reported sales price in the primary market of each component stock on the last business day (usually a Friday) before the expiration date. The exercise-settlement amount is equal to the difference between the exercise-settlement value and the exercise price of the option, multiplied by $100. Exercise will result in delivery of cash on the business day following expiration.
   
'''Position and Exercise Limits''':  The position and exercise limits are 44,000 contracts on the same side of the market. Position and Exercise limits are subject to change.
   
'''Trading Hours ''' 9:30 A.M. - 4:00 P.M. Eastern Time (New York time). 


== References ==
<references />


 
[[Category:Indexes]]
 
== Resources ==
 
International Securities Exchange [[http://www.ise.com/WebForm/options_product_indexDetails.aspx?categoryid=234&header0=true&menu2=true&link2=true&symbol=BKX]]
 
Philadelphia Stock Exchange [[http://www.phlx.com/products/bkx.html]]
 
Keefe, Bruyette & Woods [[http://www.kbw.com/about/index.html]]
 
==
References ==
<references />

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