Account Holder: Member which administrates Global Accounts.

Business Day: Days established as such on the calendar which MEFF RV shall publish before the beginning of each calendar year. 

Call Option: The holder of this Option has the right, but not the obligation, to buy the Underlying Security which is the object of the Contract at the Strike Price. The seller of the Option is obliged to sell the Underlying Security if the buyer exercises its right. Given that settlement may be made in Cash, in this case there would be no sale, but rather there would be a cash transfer. 

Cascade: It applies to Futures and Swaps contracts of the Energy Group. Procedure that takes place the last register date of a contract where a contract with a delivery period is broken down in Contracts with smaller delivery period.

Class of Contract: Options and futures contracts referring to the same Underlying Security. 

Clearing Account: Account where the Transactions carried out by its holder and positions which are opened through those Transactions are registered. 

Clearing Member: Class of Member the functions of which are to trade, to take responsibility for the satisfaction of obligations, to effect and receive payments and to buy and sell Underlying Securities under the terms and conditions of the present Regulations. 

Client: Individual or company which carries out Transactions involving the purchase or sale of Contracts on the Market through a Member. 

Close (a Contract): To carry out a transaction opposite to the original Contract, i.e. buying a contract identical to the one previously sold, or selling a contract identical to the one previously bought. For two contracts to be identical, they must be of the same Class, Type and Series. 

Combined Order: Order to buy or sell Contracts of more than one series which is conditional on the total execution of the Order. 

Commercial Identity: Code allocated to each Client for the purposes of carrying out Transactions on the Market. 

Contract: Generic term covering all Futures and Options admitted to trade on the Market. 

Daily Account: Account where all the Transactions carried out in a session are registered by a Member for their subsequent entry on either Own Accounts or Client Accounts. 

Daily Settlement of Gains and Losses: Daily cash settlement of the differences between the Price of the Future agreed for the Futures traded on the same day as the calculation, and the Daily Settlement Price of that day, or between the Daily Settlement Price of the previous day and that of the day of the calculation for the Futures which were already open at the beginning of the day of the calculation. After this procedure all the Futures Contracts are assumed to be agreed at the Daily Settlement Price. 

Daily Settlement Price: Reference price by which Margin Deposits and Daily Settlement of Gains and Losses are calculated. 

Delivery period: Period of time that the contract is referred to.

Execution of an Order: Action by which a buy or sell order given by a Member of the Market is satisfied. 

In the case of Options, for an order to be executed, there needs to exist another order which takes the other side and which has the same following features:

• Class of Contract (same Underlying Security);
• Type of Option (CALL or PUT);
• Strike Price;
• Expiration Date; and
• Premium.

 In the case of Futures Contracts, they should have the same following features:

• Class of Contract (same Underlying Security);
• Expiration Date; and
• Price of the Future;

Exercise: Action by which the buyer of an option makes use of the right to buy or sell the Underlying Security. 

Exercise Day: Day on which an Option can be exercised. The Exercise Date shall be established in the General Conditions of each Contract. 

Expiration Date: The last day on which an Options or Futures Contract can be registered on the Market. The Expiration Date shall be established in the General Conditions of each Contract. 

Forward contract: Forward agreement whereby the buyer undertakes to buy the Underlying Asset and the seller to sell it at an agreed price (Futures Price) on a future date (Settlement Date). As Contracts may be settled in cash, the obligation to buy and sell can be replaced in this case with the obligation to perform the Cash Settlement. A variation margin will be made on the settlement date.

First Trading Day: The first day on which an Options or Futures Contract may be traded on MEFF RV. It shall always be a Business Day. 

Future: Futures Contract. 

Futures Contract: A standard forward Contract by which the buyer is obliged to buy the Underlying Security and the seller is obliged to sell it at an agreed price (Price of the Future) on a future date (Settlement Date). Until that date or until the contract is closed, Daily Settlements of Gains and Losses are made. 

Given that settlement can be made in cash, the obligation to buy and sell can be substituted in this case by the obligation to comply with Settlement by Differences. 

General Conditions: Market regulations which describe the specific features of each Contract. 

Global Account: This account lists the Transactions which a Client has carried out using various different Commercial Identities, such that settlements and Margin Deposits may be calculated in relation to the net balance shown by this account. 

Margin Deposits: Sum of margins required by MEFF RV for the purpose of covering the risks which MEFF RV assumes by the Contracts registered on each account. 

Margins: Margin Deposits. 

Market: Market for Equity Related Financial Derivatives. 

Market Order: Order to buy or sell Contracts of the same series which does not include any condition other than the minimum Order form. 

Market Maker: Members of the Market which agree, by contract with MEFF RV, to continuously quote bid and offer prices exclusively for their own account. 

MEFF RENTA VARIABLE or MEFF RV: MEFF Sociedad Rectora de Productos Financieros Derivados de Renta Variable, S.A. (MEFF The Governing Company for Equity Related Financial Derivatives). 

Member: Market participant with direct access to the Market. 

Option: Options Contract. 

Option Contract: Standard Contract by which the buyer acquires the right, but not the obligation, to buy (CALL) or sell (PUT) the Underlying Security at an agreed price (Strike Price) on a future date (Settlement Date). This contract can only be exercised on the Expiration Date (European Option) or at any moment before the Expiration Date (American Option), in accordance with the General Conditions of each Contract. 

Given that settlement can be made in cash, the obligation to buy and sell can be substituted in this case by the obligation to comply with Settlement by Differences. 

Order Transmission: Action by which a Member communicates an Order to the Market. 

Premium: Sum which the buyer of an Option pays to the seller of the same. 

Price of the Future: Price agreed in a Futures Contracts. The price agreed is adjusted daily in accordance with the process of the Daily Settlement of Gains and Losses. 

Put Option: The holder of this Option has the right to sell the Underlying Security which is the object of the Contract at the Strike Price. The seller is obliged to buy said Underlying Security if the buyer exercises its right. Given that settlement may be made in cash, in this case there would be no sale, but rather there would be a cash transfer. 

Reaction Period: The period of time considered necessary for MEFF RV to close all the Contracts registered on an Account. 

Registry: Action by which MEFF RV records transaction information in the appropriate accounts of its system for their subsequent clearing, settlement and margin calculation. 

Series: In each Class of Contract, Options are of the same Series if they have the same Strike Price and the same Expiration Date, and Futures are of the same Series if they have the same Expiration Date. 

Session Supervision: Person with the function of ensuring that sessions are orderly and in accordance with the Regulations. 

Settlement at Expiration: Fulfillment of the Contract on the Settlement Date. If the settlement is by delivery, the Underlying Security shall be exchanged for the applicable price. If the settlement is in cash, it consists of the cash transfer corresponding to the difference between either the Strike Price or the Price of the Future, and the Settlement Price at Expiration. 

Settlement by Delivery: procedure whereby the Contract is satisfied on the Settlement Date by means of the delivery of the underlying asset by the short (selling) side to the long (purchasing) side, in exchange for the price agreed in the Contract. Cash exchanges at expiration shall take into account, where applicable, the process of Daily Settlement of Gains and Losses. 

Settlement in Cash: Procedure by which the Contract is satisfied on the Settlement Date only be means of the cash transfer of the difference between the price agreed in the Contract and the Settlement Price at Expiration. Cash exchanges at expiration shall take into account, where applicable, the process of Daily Settlement of Gains and Losses. 

Settlement Date: Day on which the Futures or Options Contract is settled. The Settlement Date shall be established in the General Conditions of each Contract. 

Settlement of Transactions: System by which buyers of Options pay MEFF RV the appropriate Premiums for their purchases and sellers receive from MEFF RV said Premiums, and by which buyers and sellers of Futures settle with MEFF RV their corresponding Daily Settlement of Gains and Losses while they maintain Futures Contracts open. 

Settlement Price at Expiration: Benchmark price by which settlement in cash is calculated on the Exercise Date in the case of Options or on the Expiration Date in the case of Futures. 

Strike Price: Price agreed in the Option Contract at which the buyer of an option may buy (in the case of a Call Option) or sell (in the case of a Put Option) the Underlying Security. The seller of the option is obliged to sell or buy (for Call and Put Options respectively) if the buyer exercises its right. 

Swap contract: Forward agreement whereby the buyer undertakes to buy the Underlying Asset and the seller to sell it at an agreed price (Futures Price) on a future date (Settlement Date). As Contracts may be settled in cash, the obligation to buy and sell can be replaced in this case with the obligation to perform the Cash Settlement. A variation margin will be made periodically (not daily).

Technical Delivery Price: The price, used for purely technical purposes, at which all sales of the Underlying Security are made in the cases of settlements by delivery, with cash adjustments being made for the differences between the price agreed in the Contract and the Technical Delivery Price with account being taken, where applicable, of the process of Daily Settlement of Gains and Losses. 

Trading Member: Class of Member the function of which is to trade on the market. 

Transaction: Action by which two Orders are brought together. 

Types of Options: Call Options and Put Options. 

Underlying Security: Financial asset or index of financial assets which are the object of a Contract traded on the Market. 

Valuation Interval: All the points between the maximum and minimum price of the Underlying Security by which MEFF RV calculates the market prices of the Options and Futures which are subsequently used for the calculation of Margins.

Valuation Point: One point in the Valuation Interval.