PSX proposes Single Stock Options market, seeks public feedback

Pakistan Stock Exchange has put forward rules for a proposed Single Stock Options Contracts market and invited written feedback until November 05, 2026, Mettis Global reported. The contracts would cover call and put options on shares eligible for Deliverable Futures Contracts, with each standard lot set at 500 shares or another quantity specified by PSX.

Options would be European style, exercisable only at expiry, and settled by delivery of shares on T+1 rather than cash. The initial phase would offer monthly expiries for the spot month and following two calendar months; buyers would pay the premium upfront on T+0 and would not face a margin requirement. PSX also proposes trading and regulatory charges, while its Board could suspend or end the market with SECP approval.

The exchange is seeking comments before finalising the amendments, and says it will publish relevant submissions and responses after consultation and SECP approval. The proposal also sets out contract pricing, exercise procedures and settlement-price calculations.