Shivesh Prakash, Frank Ferstler, Nicholas Pezolano · 2026 · arXiv (Cornell University)
DOI: 10.48550/arxiv.2610.13044 · cited by 0 works (OpenAlex) · open-access PDF
FLEX विकल्पों के बजाय अनुकूलित एक्सचेंज-ट्रेडिंग अनुबंध हैं जो प्रतिभागियों को गैर-मानक हड़ताल, समाप्ति, व्यायाम शैलियों, और निपटान शर्तों का चयन करने की अनुमति देते हैं, जबकि केंद्रीय क्लिंकिंग को बनाए रखते हैं। हम जांच करते हैं कि क्या एकल नाम FLEX गतिविधि नियमित सूचीबद्ध विकल्प बाजारों और आधारित शेयरों में मापने योग्य निशान छोड़ती है। FLEX संश्लेषणों, दैनिक खुले ब्याज फ़ाइलों, सूचीबद्ध विकल्प श्रृंखलाओं, पूंजी रिटर्न, और 250 ट्रेडिंग दिनों (मार्क 2025-मार्क 2026) के दौरान कॉर्पोरेट शेयरों का एक जुड़ा हुआ डेटासेट का उपयोग करके, हम तीन प्राथमिक अनुभविक निष्कर्ष दस्तावे
Machine translation (Meta M2M100); the English original follows.
FLEX options are customized exchange-traded contracts allowing participants to choose nonstandard strikes, expirations, exercise styles, and settlement terms while retaining central clearing. We investigate whether single-name FLEX activity leaves measurable footprints in regular listed-option markets and underlying equities. Using a linked dataset of FLEX consolidations, daily open-interest files, listed-option chains, equity returns, and corporate actions over 250 trading days (March 2025-March 2026) across 41 underlyings and 53 event dates, we document three primary empirical findings: (1) Matched-control difference-in-differences estimates reveal a robust post-event increase in listed-option open interest (beta = 0.3061, p = 0.0042, Benjamini-Hochberg p = 0.0168). (2) FLEX activity is strongly selected into high implied-volatility (IV) environments, concentrated in mid-price underlyings (date-fixed-effect ATM IV premium beta = 0.1235, p = 0.0030). (3) Event-day IV-minus-realized-volatility spreads predict execution-stressed short-straddle returns (beta = 0.0366, p = 0.0100). Short-lived equity return effects (CAR_0 difference of -0.85%, p = 0.0442) do not persist over 1-to-5-day horizons. Overall, FLEX activity serves primarily as an observable marker of institutional volatility demand and open-interest positioning rather than a directional stock-return predictor.
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Topics: FLEX, Equity (law), Business, Volatility (finance), Econometrics, Economics
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