DEFINITION of 'Assign'

The act of clearing houses and brokerages selecting short option and future contract holders to deliver underlying securities or commodities of maturing or exercised/tendered contracts.


Not all contracts will typically be exercised or tendered; those that are need to be settled with delivery of the underlying security/commodity. Most often, clearing houses will randomly allocate assigned contracts to brokerages that, in turn, randomly select which of their clients will be assigned.

  1. Assignment

    1. The transfer of an individual's rights or property to another ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with ...
  3. Clearing House

    An agency or separate corporation of a futures exchange responsible ...
  4. Exercise

    To put into effect the right specified in a contract. In options ...
  5. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  6. Underlying

    1. In derivatives, the security that must be delivered when a ...
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