Market regulation · 16/03/1998

CFTC Proposes to Eliminate Short Option Value Charge

The Commodity Futures Trading Commission (CFTC) proposes to eliminate the short option value charge, a four percent fee on options sold by customers, as it is not closely correlated to the actual risk of options carried on behalf of customers. The CFTC aims to maintain adequate protections, including the Standard Portfolio Analysis of Risk (SPAN) margining system, to address the risk of short options.