Binance to Adjust Settlement Price Calculation Rules for Commodity Options

As reported by TechFlow on November 12, according to a Binance announcement, the platform will adjust the settlement price rules for commodity options to align with the calculation method used for cryptocurrency options. The new rules apply to commodity options expiring at or after 06:00 on November 24 Beijing Time.

Previously, the settlement price was the closing price of the underlying market at 17:00 Eastern Time on the expiration date. Under the new rules, the settlement price will be the arithmetic average of the Binance Futures Index Price during the 30 minutes before expiration. Expiration times, trading sessions, and contract specifications remain unchanged.

Contracts expiring before the new rules take effect will still be settled under the old rules, even if settlement processing occurs after the effective time.

Source: TechFlow