Capturing Commodity Listed Future Option Trades

Choose Trade > Commodities > Listed Future Options to open the Future Option worksheet, from Calypso Navigator or from the Calypso Workstation.

Future Option Commodity Quick Reference

When you open a Future Option worksheet, the Trade panel is selected by default.

[NOTE: The trade counterparty must be a clearer, so you must have defined a legal entity of role Clearer]

Configuration

Define the exchange where the commodity trades by choosing from Calypso Navigator

Define the holiday calendar by choosing from Calypso Navigator

Define date rules by choosing from Calypso Navigator

Define the commodity product by choosing from Calypso Navigator

Define the future option contracts by choosing from Calypso Navigator

See Commodity Future Options Setup for details.

Entering Trade Details

You can select a template from the Template field to populate the worksheet with default values. Then modify the fields as applicable.

Or you can enter the trade fields directly. They are described below, see Field Description.

Note that the Trade Date is entered in the Details panel.

Proceed to the other panels as applicable.

Saving a Trade

Hit F5 to save the trade, or choose .

You can also hit F3 to save the current trade as a new trade, or choose Trade > Save As New.

A description will appear in the title bar of the trade worksheet, a trade id will be assigned to the trade, and the status of the trade will be modified according to the workflow configuration.

Pricing a Trade

A future option commodity trade requires the following market data: a zero curve for discounting the cash flows, a commodity forward curve for forecasting the price, a COMMODITY volatility surface.

The future price quote is not used in pricing when the FUTURE_FROM_QUOTE pricing parameter is set to false.

You can choose to check if all required pricing data are available in the Pricing Environment.

Click Price to price the trade.

Trade Lifecycle

You can allocate the trade by choosing

You can terminate the trade using

You can liquidate the trade manually using

You can exercise future options by choosing

You can compute margin calls on the clearing accounts in real-time or in batch mode – Refer to Calypso Futures Documentation for details

See also - All Trade Menus for information on functions, menus and panels common to all trade windows

Sample Future Option Commodity Trade

Choose for complete details.