Binance Announces Update to the Settlement Price Rule for Commodity Options
Official Source: Binance Support / Official Announcements
Update Summary
Binance has officially announced a significant change to the calculation methodology for the settlement price of Commodity Options, aligning it directly with the standard used for Cryptocurrency Options.
Effective Date: The new rule will take effect starting with expirations at the close of the U.S. trading session on Monday, November 23, 2026.
Scope: The new methodology applies strictly to those Commodity Options that expire at 17:00 (ET) on the aforementioned date and all those that expire at later times. Whether a contract is governed by the old or new rule is determined exclusively by its expiration time.
New Calculation Formula
The settlement price will be calculated by averaging the prices of the underlying commodity futures index during the final 30 minutes before expiration, as represented in the following technical formula:
$$\text{Settlement Price} = \frac{1}{1,800} \times (\text{Price}_{t1} + \text{Price}_{t2} + \dots + \text{Price}_{t1800})$$
Practical example provided by the exchange: A contract such as XAU-261130-4000-C expiring at the cutoff time will use the average of the XAU Futures Price Index, recorded second by second from 16:30:00 to 17:00:00 (ET) on that same day.
Note for Traders: Institutional users, traders, and bot developers are advised to review the technical specifications on Binance's official support channels to ensure proper synchronization with the parameters of the affected contracts.