OBX Cabinet Trades

MX electronic trading platform allows executing cabinet trades on deep out-of-the-money OBX options. The cabinet trade concept applies only to individual OBX instruments, and not to strategies.

OBX cabinet trades are transactions to liquidate deep out-of-the-money OBX options by trading them at less than 0.01 point (or 1 tick or 1 basis point). The premium for an options cabinet trade must be in a 0.001 to 0.009 price range.

Below that 0.01 threshold, the system will automatically consider the option as being deeply out-of-the-money and will accept quotes in 1/10 of a tick (from 0.001 to 0.009 point). At or above the 0.01 threshold, the system will only accept quotes in 0.005 increments (i.e. 0.01, 0.015, 0.02, etc.).

For any questions, please contact Market Monitoring at 514 871-3548.