Which measure can the management board take if an underlying is delisted?

When an underlying is delisted, one of the primary measures that the management board can take is to implement a cash settlement instead of physical delivery. This approach allows for a smoother transition for traders and minimizes potential disputes or complications that could arise from the lack of an available underlying asset for delivery.

Cash settlement provides a clear resolution by calculating the cash value equivalent of the position based on the last traded price or a predetermined settlement price. This method avoids the logistical challenges and potential losses that may come with physical delivery of a delisted asset, ensuring that both parties can settle their obligations without complications.

Other measures, while potentially useful in certain contexts, may not be suitable or as practical when an underlying is delisted. For instance, the replacement of an underlying may not be feasible if there are no suitable alternatives available, and discontinuation of trading might lead to more confusion and disruption in the market. Automatically closing positions could also create unnecessary volatility and uncertainty for traders. Cash settlement stands out as a stable and comprehensible solution in such situations.