...

• Asian Options

• Barrier Options

• Binary Options

• Digital Options

• Flex Options

• Rainbow Options

• Spread Options

This document highlights the specific considerations for Exotic Options. Refer to our other Options Best Practices for details about general Options processing.

Accounting

The accounting treatment for Exotic Options is generally the same as Vanilla Options in terms of trade activity and daily valuation. The uniqueness and complexity generally come from the exercise terms, but Eagle Accounting requires that all exercises be instructed because positions are not exercised automatically in any situation (including Vanilla Options).

This document highlights the specific considerations for Exotic Options. Refer to our other Options Best Practices for details about general Options processing.

Reference Data

In most cases the Processing Security Type (3931) should be selected based on the underlying: OPOPIX for index, OPOPEQ for single-name equity, OPOPCR for currency, etc. The one caveat is if Eagle Accounting needs to calculate daily variation margin, in which case it should be set OPOPCM regardless of the underlying type.

...