Options are exercised through the option purchaser's broker, who notifies the clearinghouse of the option's exercise. The clearinghouse then notifies the option seller that the buyer has exercised. When futures options are exercised, the buyer of a call is assigned a long futures contract, and the seller receives the corresponding short. Conversely, the buyer of a put is assigned a short futures contract upon exercise, while the seller receives the corresponding long. The CENTER ONLINE Futures Glossary
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Transfer of any contractual agreement between two parties. One of the parties, the assignor, transfers its rights or obligations to another party, the assignee. If interests in assets of the assignor are assigned, the assignment transfers all or some of the rights of ownership to the assignee. If interests in obligations of the assignor are assigned, the assignor is totally or partially absolved from further performance. Lenders sometimes see leased property assigned from the original lessor to another party who then pledges them to the bank as collateral for a loan. For personal property collateral, a secured party may enter an assignment of its security interest into the public record by using a standard form called UCC-3. American Banker Glossary
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The designation of an option writer for fulfillment of his obligation to sell the underlying futures contract (call options writer) or buy the underlying futures contract (put option writer) upon notice from the Clearing House. Notice to the seller of an option that has been exercised by the buyer. Chicago Mercantile Exchange Glossary
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The process by which the CME clearing house, in response to a long exercising its option, randomly selects a seller to fulfill its obligation to buy or sell the underlying futures contract at its strike price. The assigned seller of a put must buy the underlying futures contract; the assigned seller of a call must sell the underlying futures contract. Chicago Mercantile Exchange Glossary
The process by which the CME clearing house selects the long position to accept delivery on a contract for which a seller has submitted a delivery notice. Chicago Mercantile Exchange Glossary
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When an option is exercised by the holder, the clearing house will randomly match the exercise notice received against an open short position, and advise the chosen writer of the requirement to fulfil his contractual obligations. This is the process of assignment. Assignment is also the process by which a trade is directed into the appropriate account in TRS, either into the house, segregated (See segregation) or non-segregated account of the firm. Dresdner Kleinwort Wasserstein financial glossary
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Notice sent by the clearing house to the option writer informing him that the option has been exercised. LIFFE
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assignment as‧sign‧ment [əˈsaɪnmənt] noun
1. [countable] a piece of work that someone is given:
• My assignment was to save the company, whatever it took.
2. [uncountable] JOBS when someone is given a particular job or task, or sent to work in a particular place or for a particular person:
• With the agreement, GM got more control over the assignment of skilled workers in the plant.
3. [uncountable] the act of deciding that something has a particular value or is of a particular quality:
• Moody's said assignment of the highest rating reflects the company's improved performance.
4. [uncountable] LAW the act of giving something such as property to someone formally, by contract:
• a change of tenant halfway through the rental period through assignment of the lease
— see also deed of assignmentˈwage asˌsignment [uncountable]
when someone agrees to have part of the money they earn taken away, for example to pay a debt or pay into a
pension* * *
assignment UK US /əˈsaɪnmənt/ noun
► [
C] »
a six-month assignment
»
Solving the industry's infrastructure problems while satisfying shareholders is going to be a tough assignment.
give sb an assignment »
Our team was given an assignment to find the gaps in the market.
»
accept/refuse/take on an assignment
»
carry out/complete/finish an assignment
global/international/overseas, etc. assignment »
One of his first overseas assignments was as a junior in a delegation to Moscow.
»
Assessment for the course will be based on four written assignments and a final examination.
► [
U] »
The restructuring will require changing the assignment of responsibilities and reporting relationships.
► [
C or
U]
LAW »
The Agreement will terminate automatically in the event of its assignment.
»
The assignment of a legal lease must be in the form of a deed to be effective.