Assignment

This Issue in United States

Concept of Assignment in Futures Trading

In this context of financial law, the following is a definition of Assignment: Designation by a clearing organization of an option writer who will be required to buy (in the case of a put) or sell (in the case of a call) the underlying futures contract or security when an option has been exercised, especially if it has been exercised early.

Assignment (see Novation)

Concept of Assignment (see Novation) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The process by which one counterparty (transferor) agrees to transfer to a third party (transferee) its obligations under an existing transaction they have with another counterparty (remaining party). (See also Stepping-in/out).

Resources

See Also

• Derivatives Contract