{"release":{"id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","published":"2026-11-01T16:41:30Z","pinned":false},"limits":{"coverage":{"history":"current_only","held_since":"2017-01-20","gaps":[],"covered":["ESMA Q&A 1732 — Q&A — Price of options granted for free [Answer Published] L3"],"not_covered":["national guidance","court decisions"]},"freshness":{"release_id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","release_published":"2026-11-01T16:41:30Z","checked_at":"2026-10-27","checked_against":"the ESMA publication"},"truncation":null,"failures":[],"incomplete":[]},"page":{"path":"/mar/level-3/q-and-a/esma/esma-qa-1732-price-of-options-granted-for-free","url":"https://www.headlesslaw.com/mar/level-3/q-and-a/esma/esma-qa-1732-price-of-options-granted-for-free","title":"ESMA Q&A 1732 — Q&A — Price of options granted for free [Answer 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Jan 2017 [Answer Published]","attribution":{"prepared_by":"ESMA","published_by":"ESMA","published_in":"ESMA Q&A tool","document_type":"qa_answer","legal_nature":"not_legislation","addressees":"not stated in the document","dates":{"published_on":"2017-01-20","question_submitted_on":"2017-01-20","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_1732, column 'Esma responses', date line","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_1732, column 'Date of submission'"}},"adoption":null}},"provenance":{"official_url":"https://www.esma.europa.eu/publications-data/questions-answers/1732","check":{"result":"matched","checked_at":"2026-10-27","against":"the ESMA publication"},"repo_path":"spaces/mar/level-3/q-and-a/esma/esma-qa-1732-price-of-options-granted-for-free.md","body_sha256":"5d966233f0e32d6c1f1520aba969c434d0fcb62fd8e31cafd6fb2b4a38cef733"},"units":[],"markdown":"---\ntitle: \"ESMA Q&A 1732 — Q&A — Price of options granted for free [Answer Published]\"\nshortTitle: \"ESMA Q&A 1732 — Q&A — Price of options granted for free [Answer Published]\"\nanswer_id: ESMA_QA_1732\ntopic: \"Managers' transactions\"\nstatus: \"Answer Published\"\ntype: qa\ninstrument_type: qa\nauthority: ESMA\nbinding: false\nbinding_character: non_binding\nlegal_status: in_force\nregulation: \"MAR\"\nmar_level3: true\nmica_level2: false\nlegal_basis: \"MAR\"\ndate: 20 January 2017\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/1732\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 20 January 2017\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/1732\"\ncheck_status: matched\nverified: true\nlast_checked: 2026-10-27\nchecked_against: \"the ESMA publication\"\nsource:\n  prepared_by: \"ESMA\"\n  published_by: \"ESMA\"\n  published_in: \"ESMA Q&A tool\"\n  evidence:\n    prepared_by: \"ESMA Answer\"\n    locator: \"ESMA Q&A entry ESMA_QA_1732: field 'ESMA Answer', no 'Answer provided by' line\"\ndocument_type: \"qa_answer\"\nlegal_nature: \"not_legislation\"\naddressees: \"not stated in the document\"\ndates:\n  published_on: \"2017-01-20\"\n  question_submitted_on: \"2017-01-20\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_1732, column 'Esma responses', date line\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_1732, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer by ESMA, published in its Q&A tool · not legislation · published 20 Jan 2017 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 20 January 2017 · Checked against the ESMA publication on 27 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1732)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 1732 — Q&A — Price of options granted for free \\[Answer Published\\] |\n| **Prepared by** | ESMA |\n| **Published by** | ESMA, in the ESMA Q&A tool |\n| **Reference** | ESMA_QA_1732 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 20 January 2017; question submitted 20 January 2017 |\n| **Legal basis** | MAR |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the ESMA publication |\n\n**Price of options granted for free**\n\n### Question\n\nWhich are the rules to calculate the price of options granted for free to managers or employees for the purpose of the notifications and disclosure of managers’ transactions under Article 19 of MAR?\n\n***\n\n### Answer\n\n\\[ESMA70-145-111 MAR Q&A, Q&A 7.6\\]\n\nAccording to Article 10(2)(b) of Commission Delegated Regulation (EU) 2016/522, such transactions have to be notified under Article 19(1) of MAR.\n\nThe value of these transactions needs to be taken into consideration for the purpose of calculating the cumulated amount of the transactions of a person discharging managerial responsibility (PDMR) or a person closely associated to a PDMR, to assess whether the threshold as referred to in Article 19(8) and (9) of MAR has been crossed, hence triggering the duty to notify and disclose all subsequent transactions.\n\nThe field 4(c) on “Price(s) and volume(s)” of the template in annex to Commission Implementing Regulation (EU) 2016/523 (Implementing technical standards on the notification and public disclosure of managers’ transactions) specifies the data standard to be used for expressing the price, depending on the type of financial instruments concerned. In that respect, such template makes reference to data standards defined for the purpose of the transaction reporting under Regulation (EU) 600/2014 (MiFIR) and related technical standards. However, it does not explain the rules about the price to take into account to calculate the value of the received options.\n\nFor the purpose of the threshold calculation, the price to consider for the received options should be based on the economic value assigned to the options by the issuer when granting them. If such an economic value is not known, the price to consider should be based on an option pricing model that is generally accepted in the reasonable opinion of the PDMR. This model determines the price of the granted option based on variables such as the current share price of the issuer, exercise price of the option and time until expiry of the option. Other variables that can be used in the option pricing model are (risk free) interest rates, future dividends and implied volatility. The variables used for the price determination of the granted option depends on which general accepted option pricing model is used.\n\nHowever, when a notification has to be made in accordance with Article 19(1) of MAR and Article 2 of the Implementing technical standards on the notification and public disclosure of managers’ transactions, the price field for options granted for free to managers or employees is expected to be populated with 0 (zero).\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1732)\n"}