exercise by exception

Definition

A process carried out by the Options Clearing Corporation (OCC) designed to speed up clearing member's exercise of expiry option. It will automatically exercise options that are "in the money" by a stated maximum amount unless otherwise instructed by its members for these options not to be exercised. The OCC's aim is to ease its member of the added burden of having to enter separate exercise instruction for each option contract that needs to be exercised.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
exercise assignment exercise date