To trade either an
option or a warrant, clients must complete and return the
associated agreement. Sanford Application forms and Explanatory
Booklets regarding trading in Options and Warrants are available
on the How To Apply page.
Do
you have Straight Through Processing (STP) for the ETO market?
STP is not able to be available to Option investors. Under
ASX rules there must be an established market of an option
series or a calculated indicative price before an order is
placed on the Derivatives Trading Facility (DTF) - CLICKS.
At Sanford, once a market has been established, Derivative
Trading Representatives (DTRs) shall place the online or phone
order on CLICKS. The majority of orders will be placed within
a one-minute time frame.
What
are the trading hours of the ETO market?
Trading hours of the Exchanged Traded Options Market are different
to that of the Australian Stock Exchange.
Please see our ETO Services
page for an outline of trading hours and market phases.
Can
I write Calls or Puts?
At present Sanford has a 'Covered Call' facility. Please see
our Education
page for more information. The underlying stock that will
be written against, must have been delivered to Sanford by
the other broker or settled after the T+3 settlement period
if purchased at Sanford. At present, Sanford does not facilitate
the writing of "naked" call or put options.
How
will I know if my trade has gone through?
Confirmations of order placement, amendments, cancellations
and execution can be sent by email or Short Message System
(SMS) on mobile phones. A Contract Note will be sent by post
and as PDF files by email. This will have the details of your
trade. Statements are also available online through our Secure
Web Server.
Do
you have "live" option price information and where is it located?
Yes, the Price Information is dynamic data. Quotes can be
obtained from the Options
quote page.
Please note to gain access to ETO price information you are
required to establish a Sanford
Trading account.
What is the difference
between ETOs and Warrants?
Exchange Traded Options (ETOs) are similar to Warrants; they
allow investors to trade price fluctuations in the underlying
asset without necessarily owning the underlying asset. There
are, however, some differences. For example:
*Unlike ETOs, warrants are
generally not permitted to be short sold;
*ETOs are traded on the ASX Options Trading System CLICKS,
whereas Warrants are traded on the ASX trading system called
SEATS;
*ETOs have standardised features, where as Warrants features
are determined by the Issuer.
How
do I exercise ETOs?
You will need to notify our ETO DTRs that you wish to exercise
your option before 6.30pm AEST on or before the expiry date.
They will then contact the Options Clearing House (OCH) on
your behalf.
Note: Cleared funds are required in your trading account before
exercising ETOs.
How
can I trade Options?
Options trading is available via the Internet using the "Trading"
screen on the Sanford web site. Orders must be placed as 'Day-only'
and at 'limit orders'. Quantity is placed in number of contracts
(usually equal to 1000 shares) and price in cents per contract.
Options trading are also available via the phone.
Why
is there no price of a particular option series on the Option
Quote Page?
A majority of prices do not appear on the option quote page.
This is because there are no established markets for that
particular series, though there may have been a previously
traded price. Market
Makers are obliged to provide 12 continuous markets for
those Option series that are: In, At or Out of the money for
3 Calls and 3 Puts for the first two expiry months.
What
fees are associated with trading ETOs?
Sanford has a brokerage structure for online and phone trading.
View ETO Services
for an full outline. Attached to this brokerage is an Options
Clearing House (OCH) transaction fee which is payable to the
OCH per contract (1 contract = 1000 shares) including GST.
If you exercise an option, the OCH charge an exercise fee
of $0.55 per contract, including GST. This fee is added to
the brokerage charge.
Furthermore, there is no Stamp duty payable on ETO trading.
Though stamp duty is charged when a position has been exercised,
which is a result of a share transaction.
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