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Binance expands into physically settled options on 1,000-plus US stocks
The physically settled options route orders through Nest to Alpaca, which executes, clears, settles, and custody any shares delivered when options are exercised.
Binance is adding physically settled options on more than 1,000 selected US stocks and exchange-traded funds in the same account that already supports crypto and other equity exposure, according to CryptoSlate.
The exchange says the product is limited to eligible users outside the US, and that the securities operating “machinery” is not run by Binance. On Sept. 1, Binance said Nest Trading Limited would introduce the orders and route them to Alpaca Securities LLC, with Alpaca handling execution, clearing and settlement, and custody of any shares delivered when an option is exercised.
Binance frames the setup as a division of roles: Binance is the customer-facing access point, Nest introduces the order, and Alpaca provides the execution and post-trade infrastructure. Nest’s Abu Dhabi Global Market register lists it as active under financial services permission 260000, while indicating Nest cannot hold or control client money, and Alpaca’s FINRA BrokerCheck profile highlights its SEC and FINRA approvals and businesses including options activity, clearing, settlement, and electronic trading.
The contracts are physically settled, meaning exercising a call can deliver underlying shares and exercising a put can require delivery of them. Binance also says exercise requires an instruction submitted through its platform by the relevant cutoff, as late as 30 minutes before expiry, and positions without instructions may be subject to best-efforts auto-liquidation before trading closes.