Mr Manley's conduct led to trading in Exchange Traded Options
on two clients' accounts without their instructions.
It adds futures and exchange traded options
to GAIN Capital's core forex trading suite.
Hence, the credit risk of exchange traded options
is also low.
There are both over the counter (OTCs) and exchange traded options (ETOs).
If it is an exchange traded option, the amounts (which vary with each different exchange) and the strike dates (deliver dates) are standard--around the 15th of the month in March, June, September, December.
Over the counter options can be tailored to the individual needs of the corporate clien;or example, as discussed above, exchange traded options on the Philadelphia Stock Exchange are for a specific amount, specific maturity and specific strike price interval.
Finally, over the counter options have the advantage of trading twenty four hours a day, unlike exchange traded options which trade only during certain hours.
Both OTC as well as exchange traded options
may be introduced.