Cabinet Trades for Outright Options

A cabinet trade (also known as cab or cabinet price) is used to close a deep out-of-the-money option contract position at a predefined minimum tradable price.

Cabinet Price Messaging Details

• Cabinet price for Order Entry is provided in the Security Definition market data (tag 35-MsgType=d) message in tag 9850-MinCabPrice.

• Cabinet prices are supported on both Orders and Mass Quotes.

• iLink Execution Reports (tag 35=8) for cabinet orders, quotes, and trades will reflect the cabinet price in tag 44-Price.

• Market Data Incremental Refresh messages (tag 35=X) for book updates and trades will reflect the cabinet price in tag 270-MDEntryPx.

• Settlements at Cabinet price will have the settlement price published in market data messaging in tag 270-MDEntryPx.

  • Cabinet prices used for settlements, provided in tag 269-MDEntryType=6 and tag 270-MDEntryPx of the Market Data Incremental Refresh (tag 35-MsgType=X) message, may not be the same as the Cabinet price used for trading, provided in tag 9850-MinCabPrice of the Security Definition (tag 35-MsgType=d) message. In addition to being published on MDP 3.0, Cabinet settlement prices are available in the SPAN file type P record, the XML SPAN file, and in the FRPF files on sftp.cmegroup.com.